Business Process Outsourcing Indonesia: Risks and Benefits

Risks and Benefits of Business Process Outsourcing in Indonesia

  • InCorp Editorial Team
  • 13 October 2020
  • 3 minute reading time

Business process outsourcing (BPO) in Indonesia is a common practice that enterprises outsource specific non-primary business processes to an external BPO provider. These business functions include tech support, payroll, bookkeeping, accounting, taxes, and other human resource activities. These non-profit generating tasks deplete employee’s precious time and company’s resources that employers can otherwise spend on growing their businesses.

As a result, by using a business process outsourcing in Indonesia, your team can focus on providing values to your existing and prospective customers, and creating a competitive edge in this ever-competitive business environment. This can ultimately help expand your business.

Knowing the risks and benefits of BPO in Indonesia can help determine if BPO initiatives should be in place for your organisation.

Risks and Benefits of Business Process Outsourcing in Indonesia

Risks of BPO in Indonesia

BPO you engage for your business carries certain challenges and risks:

  • You need to entrust your confidential and sensitive company information and data to a third party and may be subject to the privacy and data security breaches
  • You business may depend too much on the outside sources and lose some control
  • You may face unanticipated costs and restrictions for your business growth
  • You must set your budget accurately in advance
  • You may encounter language barriers in Indonesia that can derange the partnerships

Benefits of BPO in Indonesia

Apart from the risks mentioned, business process outsourcing in Indonesia carries a lot more benefits than potential risks:

  • Reduce significant overhead and save costs by cutting down the front office and back-office operations, minimising employee turnover, and simplifying hiring and recruitment
  • Simplify complicated processes with the latest technologies
  • BPO providers can work with you on a fee-for-service arrangement based on your work volume due to seasonality and unexpected fluctuations
  • You will have access to expertise as your BPO vendor has a team of professionals that can help you deal with complicated business functions such as accounting, bookkeeping, taxes, and other legal compliances
  • You can save a lot of time and improve your business efficiency

As you can see, the benefits of business process outsourcing in Indonesia outweigh its risks. These benefits enable you and your team to put more time into your core business functions that can help enhance productivity and boost your product and service value.

How to Choose the Ideal BPO Partner in Indonesia

So how to choose the ideal BPO partner in Indonesia? BPO is a long-term partnership and therefore you need to consider many aspects to ensure that this relationship is committed and trustworthy.

Four simple steps you should go through to find the best BPO service in Indonesia:

1. Review your business processes and understand how your business can benefit from BPO.

2. Vet and shortlist your potential BPO partners based on criteria such as their services, pricing, and reputation.

3. Draft, negotiate and finalise a legal agreement with your BPO partner. The agreement must include terms that can add value to your business performance.

4. Prepare to execute the BPO project with your service provider based on your project timeframe and complexity.

Cekindo as Your Business Process Outsourcing Partner

Every company’s needs are different. Whatever your unique requirements are, partnering with Cekindo as your professional business process outsourcing in Indonesia offers you viable solutions. We can turn your vision into reality.

Our comprehensive BPO services include recruitment, payroll processing, accounting and tax reporting, audit and review service, business visas and work permits, retirement visas, and other visas in Indonesia.

Contact the team at Cekindo to talk to one of our consultants and begin your BPO journey. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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