- Staff Leasing vs. Seat Leasing vs. BPO vs. B-O-T
Staff leasing vs. seat leasing vs. BPO vs. B-O-T
Outsourcing business processes can be classified on the outsourcing levels. It can either be staff leasing, seat leasing, comprehensive business process outsourcing, and B-O-T or Build-Operate-Transfer.
Staff leasing is an outsourcing model where there is a contractual agreement for employee recruitments with a leasing company or a PEO (Professional Employer Organization). The third-party company handles various business functions, such as administrative tasks and human resource. In staff leasing, the business doing the leasing can hand pick people to be included in the team, but their daily function will be managed by the provider.
Seat leasing, on the other hand, primarily deals with leasing an infrastructure or a fully functional and well-equipped office. It usually already includes necessary office essential like computer systems, internet connection, furniture, and other basic necessities. Seat leasing is an option for businesses that already have the employees but doesn’t want to take a huge investment in building an office from a scratch.
A comprehensive business process outsourcing pertains to having a long-term agreement and relationship between a company and an external service provider. The provider is required to handle business functions such as administration, content, delivery, and technology.
The B-O-T is a form of outsourcing where a business creates partnership with an offshore agency or business to build and operate the business. During the building stage, the agency will build the business infrastructure from scratch, which already includes personnel, office space, licenses, and all essentials. At a later stage, once everything is ready, the business will be transferred to the owner.
As far as outsourcing is concerned, there are various choices available for businesses. Choosing the ideal model for a company would help to have a better control in budget and costs, as well as the return of investment.
Recognizing the pricing, labor costs and internal revenues
One of the main reasons why businesses and companies outsource parts of their business processes is to save on costs and expenses while increasing sales at the same time.
Outsourcing price is usually the selling point in choosing where to outsource. However, before outsourcing a business function, it is important to specify what functions you want to outsource and the quality of output you are expecting. It will help identify if outsourcing that function is as cost-effective as you realize compared to doing it in-house. Calculation the in-house costs of a business function you wish to outsource would also help you verify how much you are about to save.
Calculate both outsourcing costs and in-house costs, deduct the latter from the former and you will be able to derive your total cost savings.
Ultimate guide to outsourcing
- Business Process Outsourcing: knowing the basics and its benefits
- Business Process Outsourcing and its advantages
- 10 reasons why you need to outsource your business
- a. It reduces and controls the operating costs but increases revenues
- b. It helps You maximize the use of external resources
- c. It enables the company to gain access to world-class capabilities
- d. It can free up internal resources for other purposes
- e. It Requires Little to No Initial Capital Investment
- f. It Provides You Access to Trained or Expert Specialists
- g. It Allows You to Focus on the Core Competencies of Your Business
- h. It Reduces the Training and Labor Costs of the Employees
- i. It Gives You Instant Access to World-Class Skills
- j. It Ensures 100 percent Security in the Billing Process
- What Are the Business Areas That You Need to Outsource?
- Different Types of Outsourcing that You Need to Know
- Staff Leasing vs. Seat Leasing vs. BPO vs. B-O-T
- Outsourcing vs. Offshoring: Knowing Its Difference and Importance
- Part I: A Simple Guide Before You Start Outsourcing Your Business
- Part II: How Are You Going to Outsource Your Business?
- Part III: Is Now the Right Time for You to Start Outsourcing?
- Myths and Misconceptions of Outsourcing: Is It Real or Not?
- Myth #1 - Outsourcing Lets You Lose Control of Your Business
- Myth #2 - Outsourcing Only Aims to Cut Your Operational Costs
- Myth #3 - Outsourcing Guarantees Lack of Knowledge on the Services
- Myth #4 - Outsourcing Is Only Limited to Big Businesses
- Myth #5 - Outsourcing Will Let You Lose the Privacy of the Company
- Myth #6 - Outsourcing Means Offshoring: There Is No Difference
- Myth #7 - Outsourcing Delivers Low-Quality Services and Outputs
- Myth #8 - Outsourcing Weakens the Economic Status of the Country
- Myth #9 - Outsourcing Adds Up to the Unemployment Rate
- Myth #10 - Outsourcing Is Not a Long-term Plan
- Myth #11: Outsourcing Is Only for Established Businesses
- Myth #12: IT Outsourcing Is Way Too Complicated for Small Businesses
- Myth #13: Healthcare BPOs Can Increase Expenses
- Myth #14: An In-house Sales Force is Cheaper Than Outsourcing
- Myth #15: Outsourcing Sales Force Destroys Company Branding
- Real-Life Success Stories: How BPO Continues to Change Lives
- Why Do People Choose the BPO Industry as Their First Career Venue?
- BPO as the Ladder to Success: 10 Stories of Firsthand Experiences
- The Philippines as the Top Outsourcing Destination
- What Made Outsourcing Skill Sets in the Philippines Different?
- 10 Reasons Why You Need to Outsource to the Philippines
- 1. The Philippines Is an English-Speaking Country
- 2. Labor Costs Are Lesser Than in Most Western Countries
- 3. You Can Hire Flexible, Skilled, and World-Class Employees
- 4. Filipinos Ensure High-Quality and Excellent Services
- 5. Filipinos Can Adjust to Any Time Zone and Working Schedule
- 6. You Can Focus on Handling the Core Competencies of Your Business
- 7. You Can Assure That You Are Paying the Best Salary Rates
- 8. Government Support
- 9. Ability to Multi-task Efficiently
- 10. Infrastructure Development
- What are the Accounts that BPO Companies have in the Philippines?
- Top Business Process Outsourcing Companies in the Philippines