Business process outsourcing (BPO) is common these days among all sorts of companies, including insurance agencies. That’s because this approach has proven effective, creating efficiencies in daily workflows.
BPO goes beyond the ease of having a subcontracted partner company prepare and file paperwork or payroll on your behalf. It also works along three dimensions: environmental, social, and governance, or ESG. These particular efficiencies ripple out much farther than the immediate office setting, shaping overall policies, culture, and strategies to encourage corporate responsibility.
BPO that takes ESG considerations into account is especially important in mergers and acquisitions, or M&As, where two separate companies or agencies with unique cultures blend together to form a new one. If these facets are considered, they help foster a sustainable M&A.
Here’s a closer look at how BPO can boost business sustainability, leading to purpose-driven deals that define a responsible business.
How Can BPO Address Environmental Factors That Guide Purpose-Driven Deals?
ESG considerations involving the environment focus on protecting the Earth through practices like paperless billing, which saves trees and reduces waste. Aligning with a BPO partner that already has sustainability measures like this in place complements your company’s existing ESG initiatives.
Also, over time, the BPO team will understand your culture, values, and mission regarding environmental protection and sustainability. This enables the team to provide the best service to your customer or client base, conveying your sustainability vision.
Why Is Impact Investing Important?
This strategy involves investing in businesses, funds, and projects that deliver environmental and social returns and turn a profit. Partnering with a BPO that focuses on ESG considerations is a way to do this.
Also, many BPO companies engage in impact investing, creating jobs for well-educated workers in countries like Mexico, Asia, and Africa, which allows many of these workers to rise above the poverty they face in their communities. Through your partnership with a BPO, you also contribute to these workers’ livelihood.
How Does BPO Improve the Social Dimensions of a Company in an M&A?
The social dimensions involve managing relationships, particularly with employees, suppliers and vendors, customers, and the broader community.
Because a BPO partner takes over daily tasks like answering phones or filing specific forms and paperwork, your company is better able to focus on fostering these relationships by holding employee training sessions more often, for example, or dedicating time to community outreach, where employees help local charities on behalf of the company. You will also have time to meet with your vendors and suppliers more often and see where their own ESG efforts stand.
All of these efforts help the company in the long run by leveraging and enhancing ESG-related programs and priorities. If you decide to sell the company one day or are open to a merger, having all these social matters in order will help make for a sustainable M&A.
How Can BPO Enhance Governance?
Governance involves top leadership, including the decisions executives make and the pay they receive. It also includes other financial and operational aspects of business, such as audits, internal controls, and shareholder rights, among other matters.
BPO can enhance corporate governance in various ways, from reducing operating costs and employee turnover to improving scalability.
Another way BPO can help is by introducing and implementing newer technologies, like artificial intelligence, which can help streamline task automation, provide predictive analysis, and improve customer support.
Set clear ESG goals and targets with a BPO partner upfront and keep tabs on the progress toward becoming a responsible business.
A BPO Partner You Can Depend On
Now you know how BPO can successfully boost sustainability much more broadly for a company. But do you know how to turn your company into a responsible business that makes purpose-driven deals through impact investing?
At Confie, we offer world-class BPO solutions that enhance sustainability, improving outcomes. Learn more about successful process outsourcing strategies and practices at our Insights page. For more information about Confie, contact us today or call us at (714) 252-2500.