Why NetSuite is Ideal for Business Process Outsourcing Firms 

Business Process Outsourcing, also known as BPO, is the practice of outsourcing one or more essential business operations. It is a common trend to outsource various processes to save costs and improve efficiency. Thanks to its extensive range of functionalities, NetSuite is an excellent choice for BPO firms looking to deliver efficient, cost-effective services.   

A tie-up with the cloud solution offers these companies efficient and cost-effective services. The NetSuite BPO program was tailored for NetSuite partners offering outsourcing or Business Processes as a Service (BPaaS). It provides these firms with the tools they require to serve clients. From startups to companies worth $500 million, anyone can make use of this strategic partnership.  

Statistics on Global Outsourcing   

According to A.T. Kearney's Global Services Location Index, India tops the list of favorite outsourcing destinations globally and it is closely followed by China and Malaysia. The consultancy examines the most cost-effective, competent, and business-friendly areas for outsourcing services. This enables firms to cut expenses for oft repeated and expensive activities.  

• Pandemic Impact: In the wake of the pandemic, businesses switched to digitalized operations. Now more than 68% of business outsourcing services are in the United States making it the only nation to have the highest rate of outsourced jobs globally.  

• UK Talent Crunch: The acute talent crunch is the reason behind 48% of British enterprises outsourcing business services.  

• Future Outlook: A Deloitte report from 2022 says that by 2025, the worldwide outsourcing market is slated to touch $19.5 billion. Businesses will keep using cloud solutions for IT outsourcing, which are anticipated to reach “a mammoth $760 billion” in 2027.  

NetSuite for BPO  

Target Audience: Who Can Benefit from BPO and NetSuite?  

Growing mid-market enterprises and high-growth startup businesses that haven’t yet developed internal finance teams make excellent candidates for the BPO-enabled route to a full NetSuite installation.  

BPO as a NetSuite Migration Strategy   

Any business that still relies on manual procedures, spreadsheets, or simple accounting software like QuickBooks, migration to NetSuite offers:  

• Immediate process improvements. 

• A foundation for long-term financial success.  

BPO Before and After Migration  

The BPO provider’s expertise will be a part of your team when gathering the implementation needs:  

• Bringing a wealth of knowledge about your business model, strategy, and financial procedures. 

• Receive directions from them regarding important objectives and needs for a smooth transition.  

NetSuite Deployment: Choosing Between Standard Licensing and Sublicensing  

NetSuite offers flexible deployment options, enabling businesses to optimize financial operations while aligning with their unique requirements. Within the constraints of NetSuite’s licensing agreements, you can configure the system to best meet your needs as the licenses are yours. Whether through standard licensing or sublicensing, companies gain access to NetSuite’s full capabilities with the support of experienced BPO providers.  

Conventional NetSuite Deployments   

Businesses can purchase NetSuite licenses from providers and implement and optimize the system for their needs. The CPAs of the provider can take over a part of or all required activities once the company is prepared to use the platform for its financial and accounting needs. During this process:  

1) Flexibility in Control: Companies retain full ownership of their licenses and can customize the system within NetSuite’s licensing agreements. 

2) Post-Implementation Options:  

• You have the freedom to choose to either train current employees to use the platform or hire new talent already proficient in NetSuite.  

• Alternatively, you can engage in a BPO arrangement, in which case you will have access to a group of external accounting and finance experts to manage your enterprise.  

In most scenarios, firms realize that a BPO partnership is cheaper than recruiting, offers more flexibility for businesses with seasonal or cyclical changes, lowers overhead, and facilitates faster scaling.   

NetSuite Sublicensing with BPO Providers 

You can acquire access to NetSuite via sublicensing with the help of the BPO provider. This route offers the software’s whole power at a cheaper cost. In addition to the license, providers can offer services and buy them on your behalf. This route includes added benefits: 

• Lower Financial Risk: The provider manages the NetSuite license on your behalf, reducing upfront investment risks associated with purchasing a new ERP system. However, it has significant operational usage restrictions.   

• Transition Flexibility: You can take control of the license later without needing to re-implement the system. However, it is significant to highlight that no administrator credentials have been disturbed. Instead, the BPO manages the NetSuite instance, and your team has access to all necessary features.  

Once the sublicensed instance is customized for your company, the BPO may offer outsourced accounting, much like the conventional approach. However, there are significant distinctions between these two tactics:   

The partner offers transitional talent for accounting and installation, regardless of whether your business chooses to acquire a license independently or benefits from a sublicensing arrangement.   

6 Major Advantages of Choosing BPO for NetSuite Implementation  

1. Reduced Overhead  

Any organizational reform should aim to increase income while enhancing operations. One of the most effective and high-return undertakings your business can do is the implementation of NetSuite. A team of outsourced accounting and finance experts will assist your company to maximize profits. You pay for the services you require, saving money on hiring, training, benefits, and renting/leasing office space while delivering high return on investment or ROI.  

2. Less Volatility, Smooth Scaling   

Having the ideal internal workforce can be challenging to prepare for, whether you experience peak needs at monthly, quarterly, or year-end. If you hire too many accountants, you will be stuck covering their overhead and wages during slow periods. Recruiting a limited number of people will make you end up with overworked, burnout-prone workers. Your accounting activities can be outsourced, which allows for easy personnel additions and removal, cost savings, and expedited operations.  

3. Expertise in NetSuite  

A NetSuite partner’s accountants are totally committed to the software. BPO providers employ NetSuite-certified CPAs (Certified Public Accountants) who bring advanced efficiency, often handling workloads equivalent to multiple internal staff members.  

4. Less Obstacles to Access  

The unknowns involved in switching to a new system might discourage many decision-makers from taking action until growth becomes unmanageable or they fall behind more agile competitors to the point where the company fails. These dangers are eliminated by choosing BPO.  

5. Staging Prior to Migration  

In order to prevent issues from getting transferred to NetSuite, it is critical to understand how gaps or pain areas in your accounting procedures will be fixed. Before migration starts, make sure your chosen BPO partner has CPAs and accountants who can navigate your existing accounting system like QuickBooks. Your BPO team will:  

• Audit existing processes. 

• identify and resolve gaps before migration. Verify that everything is prepared for the migration.  

• Set the stage for a smooth NetSuite deployment and better ROI.  

6. Enhanced Reporting and Visibility 

Employees of BPO are not only professionals in automating and modifying the platform but they also have years of advanced NetSuite finance knowledge. Benefit from tailored dashboards, detailed reports, and accurate financial insights, backed by experts who optimize NetSuite functionalities.  

Wrapping Up 

The Path to a Smarter, Cost-Effective ERP Transition 

Partnering with a NetSuite BPO provider streamlines your migration from basic systems to an advanced ERP like NetSuite. It cuts costs, accelerates value realization, and long-term success for your business. In addition to helping your company stay on schedule as you shift from a very basic system to an advanced platform like NetSuite, partnering with a BPO provider greatly reduces the risks associated with large ERP projects.  

Whether you opt for standard licensing or sublicensing, the expertise and flexibility offered by BPO providers ensure a seamless transition, faster ROI, and sustainable business growth. NetSuite has distilled the wisdom gained from tens of thousands of global installations over the course of two decades into a set of best practices. It offers a clear path to success and has proven expertise to generate corporate value quickly.  

Ready to transform your business with NetSuite? Connect with Jobin & Jismi today to get expert guidance tailored to your needs. Reach out now!