Business Services

A business service provider (or BSP for short) is a highly valuable service for businesses of all sizes. Within the larger BSP category, one has front-office BSPs as well as back-office BSPs. The former is responsible for anything customer-related such as contact center services and the like. The latter deals with internal business functions, things that a customer wouldn’t necessarily be involved or concerned with. These are typically human resources, accounting and finance issues.

The value of a BSP is it saves a ton of time and resources that businesses can use in smarter ways. Ever heard of outsourcing? Of course, you have. It is a tricky subject however, mainly because it is polemic depending on what side you fall on. Outsourcing is simply handing over the business of something to a third-party, an entity outside of the company. Many companies outsource because it makes more financial sense. If Jane or Joe are great at X, Y and Z, then what use is it having them expend 20% of their time on W. Especially if W is not producing nearly the same amount of returns as X, Y or Z. Once a business can identify this the case for outsourcing can be made.

In general, BSPs are delivered within a model known as fee-for-service. Some businesses are obviously much more complex than others so a fee for a service structure provides the company more flexibility. BSPs will also give businesses over time insight into what their key expertise is. Mentioned earlier, knowing what you do well and capitalizing on it is the key to any business. If your people are bogged down in activities that could and should be outsourced, that is invaluable information that is of service to everyone. BSPs can also augment the pace of business processes without getting bogged down in bureaucratic nonsense. This is a productivity killer and one that can really stifle entrepreneurial speed and agility.

So now that we know how valuable BSPs are, how does one go about choosing the right BSP? Well, cost is first and foremost. We say this (prior to customer service, etc) because there are some extremely costly BSPs out there, geared at businesses that are highly complex and frankly, different animals than most of the bunch. You might think your firm is on this level, but if it isn’t, you’ll likely be overpaying for a service that you never needed in the first place. Set your budget and stick to it. Overpaying for something is nearly just as bad as not having outsourced what you should have to a BSP.

Second however is customer service. Put a potential BSP through the ringer, see how they respond to annoying questions and concerns on your end. Ask them to call or email you back at a certain time and see if they do it. This service is going to be your right-hand partner for a while, trusting that they know and respect you are vital. Again, a BSP can change the direction of your company for the positive. Pick a good one and strap in for the ride.