Business process outsourcing (BPO) allows owners and managers of small and medium enterprises to focus on the core competencies that afford them a competitive advantage. It provides them with resources and expertise they need to get necessary non-core functions done, while allowing them to focus on what they do best. There are risks that come with outsourcing that cannot be overlooked, but with proper due diligence and preparation they can be minimized. Although almost any function can be outsourced, each enterprise needs to determine which functions are best suited for them based on their current situation and their needs.
I agree, in small and medium enterprises this would be an attractive option with many benefits as long as they do their homework based on their needs, etc. Few things are outsourced where I work... COBRA administration is one that I know of for sure. I think it goes back to core-functions and core-competencies of the company. The company administering COBRA to former co-workers has greater resources to be up-to-date regarding all our changing laws that we need to abide by. It almost serves as a safety net.
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