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 cost. Thanks to its extensive range of functionalities, NetSuite is an excellent choice for BPO firms.  

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

On the other hand, the acute talent crunch is the reason behind 48% of British enterprises outsourcing business services. 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.  

Target Audience  

Growing mid-market enterprises and high-growth, early-stage 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 Migration Strategy  

Any business that still uses manual procedures, spreadsheets, or simple accounting software like QuickBooks can benefit from outsourcing while setting the groundwork for a successful long-term financial plan.  

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. The team will receive directions from them regarding important objectives and needs.  

Conventional NetSuite Deployments  

Solutions from NetSuite Businesses can purchase the software from providers and then have it implemented and optimized. 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.  

Within the constraints of NetSuite’s licensing agreements, you can configure the system to best meet your needs as the licenses are yours. After the setup is over, you have the freedom to decide whether to train current employees in the software or rope in new team members who are already familiar with the system. 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.  

Sublicensing  

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 it on your behalf. This provides some financial advantages and reduces risks associated with purchasing a new ERP system. However, it has significant operational usage restrictions.  

If the provider buys the license on your behalf at first, you always have the choice to take control of it later without having to re-implement it. 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 several significant distinctions between these two tactics:  

Standard licensing is ideal for companies seeking full operational access to the system or have the resources to host their own NetSuite instances.  

A sublicense strategy is perfect when businesses are strong supporters of exporting and maintaining small internal staffs.  

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 a migration strategy  

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 an office space.  

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. They frequently hold advanced NetSuite certifications and are CPAs (Certificate Public Accountant). Due to their exceptional platform efficiency, they are frequently able to manage the workload of two or more internal personnel.  

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 the migration starts, make sure your chosen BPO partner has CPAs and accountants who can work inside QuickBooks or your old accounting system to:  

• Examine your present procedures 

• Verify that everything is prepared for the migration.  

• Learn things that will assist the NetSuite deployment to proceed smoothly and efficiently, which will increase the project's return on investment or ROI.  

6. Reporting and Visibility Improvements 

Employees of BPO are not only professionals in automating and modifying the platform but they also have years of advancing NetSuite finance knowledge. You have access to their superior accounting expertise in addition to getting thorough reports, dashboards and projections among other things.  

To sum up   

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.  

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. For any queries regarding NetSuite, get in touch with Jobin & Jismi.