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Third-party partners are crucial in transforming how energy companies in Dallas manage back-office functions. These service providers are experts in helping businesses simplify procedures, track regulatory compliance, and improve cost efficiency.
This article discusses why energy companies in Dallas should consider business process outsourcing (BPO) amid operational challenges. It also describes the types of third-party services available and the reasons behind the Dallas energy sector‘s reliance on outsourcing for considerable cost savings.
Read until the end to learn the advantages of partnering with a BPO provider in Dallas, TX.
Texas is the nation’s leading crude oil and electricity producer. In 2020, the Lone Star State produced 4.9 million barrels per day (mbd) of crude oil, while the output of most regions was below one mbd. In the same year, Texas also produced the most power at 473,515 gigawatt-hours (GWh), while the rest of the states made less than 200,000 GWh.
Dallas is among the primary hubs for the state’s energy industry. With a substantial presence in the upstream and downstream parts of the oil and natural gas sectors, it serves as a vital center for energy transportation in the U.S. Texas’s third most populous city is also the headquarters of major oil and gas companies, such as Energy Transfer LP and HollyFrontier Corporation.
Back-office outsourcing services can assist in tackling the operational concerns of the Dallas energy industry. They deliver lower-cost options while streamlining processes, resulting in better savings.
The following are the standard services energy companies in Dallas can outsource:
Note: Trading Economics contributed data for the Philippines and Mexico; the Bureau of Labor Statistics supplied statistics for Dallas; and the North Central Texas Council of Governments provided LFPR for Dallas-Fort Worth-Arlington for 2020.
When outsourcing to nearshore or offshore BPO companies, the Dallas energy sector acquires substantial long-term savings due to the lower salary costs. In a stable employment market, wages tend to stay pretty constant. On the other hand, a shortage of expertise hikes wages and service fees, raising operating costs.
Sources: Salary Explorer for the Philippines and Mexico amounts; Indeed for Dallas, Texas (U.S.) figures. For simplicity, the Salary Explorer statistics were translated from Philippine and Mexican currencies to U.S. dollars.
Based on the data, hiring a bookkeeper from the Philippines saves an energy business approximately $2,884.83 monthly. Note that these are estimates. Request pricing details from a BPO company.
For the Dallas energy sector to maximize its outsourcing initiatives for better savings, productivity, and performance, the following six pointers are helpful:
Why Should the Dallas Energy Sector Consider Back-office Outsourcing?
Texas is the nation’s leading crude oil and electricity producer. In 2020, the Lone Star State produced 4.9 million barrels per day (mbd) of crude oil, while the output of most regions was below one mbd. In the same year, Texas also produced the most power at 473,515 gigawatt-hours (GWh), while the rest of the states made less than 200,000 GWh.
Dallas is among the primary hubs for the state’s energy industry. With a substantial presence in the upstream and downstream parts of the oil and natural gas sectors, it serves as a vital center for energy transportation in the U.S. Texas’s third most populous city is also the headquarters of major oil and gas companies, such as Energy Transfer LP and HollyFrontier Corporation.
Operational Challenges in the Dallas Energy Sector
The Dallas energy industry deals with several operational issues that require practical solutions. Among them are:- Workforce supply. The energy sector confronts occasional labor shortages due to market changes, seasonal demand, and industry conditions.
- Supply chain complexity. The extensive energy supply chain includes many parts, such as research, exploration, production, transportation, and distribution.
- Data security. The energy business engages with sensitive and confidential data, such as reserves, exploration, and client information.
- Regulatory compliance. The energy industry is widely monitored, with various federal, state, and local rules that must be observed.
- Risk management. The energy market is open to various risks, including geopolitical events, environmental concerns, and price fluctuations.
- Operational resilience. Critical energy infrastructure requires high flexibility, such as power generation and distribution.
- Technological advancements. Staying current with rapidly changing technologies is essential in the energy landscape. New tools, software, and digital breakthroughs are required to remain competitive.
Back-office Outsourcing Services for the Dallas Energy Sector
Back-office outsourcing services can assist in tackling the operational concerns of the Dallas energy industry. They deliver lower-cost options while streamlining processes, resulting in better savings.
The following are the standard services energy companies in Dallas can outsource:
- Accounting and finance. Delegating accounting tasks, such as accounts payable, receivable, payroll processing, and financial analysis, enables energy companies to enhance their cash flow. This strategy improves financial management while reducing operating expenses, allowing for more effective resource allocation to core functions.
- Human resources (HR). Onboarding, benefits management, workforce administration, and similar HR functions can be outsourced to access the expertise and technological capabilities of HR specialists. This leads to more seamless personnel management operations.
- Information technology (IT) support. Energy firms can outsource this function to leverage the latest technologies, reinforce data security, and offer nonstop technical assistance. This approach protects the dependability and efficiency of IT systems, which are critical for operational efficiency and data protection in the energy sector.
- Customer support. Dallas energy companies can subcontract customer support functions, including call center services, billing inquiries, and dispute resolution. This approach enables them to concentrate on core activities while sustaining high-quality consumer service and improving customer satisfaction and experience.
- Data management and analysis: The information-fueled energy sector can outsource data management, analytics, and reporting services. Third-party providers can process and analyze extensive information, delivering valuable insights for data-driven decision-making to boost operational performance.
- Inventory management and logistics. Energy firms can delegate the management, procurement, storage, and distribution of vital resources and equipment to outsourcing companies. This allows energy providers to increase process efficiency and cost-effectiveness while undertaking more critical projects.
How Back-office Outsourcing Benefits the Dallas Energy Sector
Energy companies can delegate their back-end functions to BPO providers with overseas operations. But what is BPO’s role in supporting the Dallas energy industry’s cost-saving initiatives? BPO companies excel in strategic outsourcing, using specialized knowledge, qualified third-party professionals, and relevant technologies to help with multiple back-office operations. Their services are performed in one of the following ways:- Offshoring. Regardless of its distance from the Texas location, the BPO company in the Philippines efficiently oversees the bookkeeping operations for a solar panel distributor in Downtown Dallas.
- Nearshoring. The BPO provider manages the outsourced operations near the Dallas headquarters. For instance, third-party vendors in Mexico perform back-office outsourcing functions for retail energy suppliers in Texas.
Ample, Skilled Personnel to Provide Excellent Outsourced Operations
The Dallas-Fort Worth-Arlington region, often called the “Metroplex,” has a vast talent pool. The market is still experiencing a labor shortage, and business expansion has worsened. Finding and retaining skilled workers remains a big concern as the market progresses. When the Dallas energy sector outsources its back-office operations, it can achieve savings by hiring from countries with an ample workforce supply, such as the Philippines and Mexico. Compare the numbers below. The labor force participation rate (LFPR) is 64.8% in the Philippines and 60.17% in Mexico. These figures show six out of 10 skilled Filipinos and Mexicans are ready to find employment.| Country | Employed Persons | Unemployed Persons | Persons Available to Work | Labor Force Participation Rate |
|---|---|---|---|---|
| The Philippines | 45,942,890 | 2,150,370 | 48,093,260 | 64.80 |
| Mexico | 59,403,947 | 1,639,021 | 61,042,968 | 60.17 |
| Dallas-Fort Worth-Arlington, Texas (U.S.) | 4,241,100 | 183,900 | 4,425,000 | 68.30 |
Reduced Operating Expenses to Save Money
When the Dallas energy sector collaborates with BPO companies to oversee their back-office outsourcing tasks, savings can be enhanced through decreased operating costs. Outsourcing can diminish the following ongoing expenses:- Hiring. Back-office outsourcing means the service provider handles recruitment, from posting ads to training new hires, saving time and cost.
- Office resources. Building an in-house team requires new equipment, additional office space, and ongoing maintenance and upgrades, increasing costs.
- Payroll. Full-time employees receive fixed and overtime pay and enjoy tax deductions and mandated state benefits and perks, regardless of the energy company’s situation.
- Upskilling. The BPO provider covers upskilling and development costs, which would financially burden Dallas energy firms if provided in-house.
Low-cost, Dedicated Remote Workers for Higher Funds
Service providers offer access to affordable, dependable, and qualified remote professionals. Thus, the Dallas energy sector can more easily achieve outsourced cost savings. To highlight cost advantages, compare bookkeepers in the Philippines, Mexico, and Dallas.| Country | Average Monthly Salary of Bookkeeper (in U.S. dollars) |
|---|---|
| The Philippines | $364.17 |
| Mexico | $892.68 |
| Dallas, Texas (U.S.) | $3,249 |
Greater Compliance With Regulations to Avoid Heavy Penalties
Noncompliance with rules can result in punishments, lawsuits, and bad publicity for energy organizations. So, the Dallas energy sector outsources its functions for more stringent adherence to government and industry regulations and substantial cost savings. A BPO vendor will monitor the following data handling policies:- The General Data Protection Regulation (GDPR) is among the world’s strictest data privacy standards for European Union businesses.
- The Payment Card Industry Data Security Standard (PCI-DSS) is a security policy requiring the safe management, transfer, and storage of credit card user data.
Flexible Processes for Enhanced Cost Efficiency
When the Dallas energy sector teams up with BPO firms for back-office outsourcing, cost savings become possible. Service providers offer scalability since they can modify their workforce and administrative tasks without disrupting normal operations. Check out the advantages of scalable functions:- Cost-effectiveness. Scalability helps the energy firm obtain the correct number of third-party workers for budget optimization. The BPO provider also suggests task-specific team sizes for efficiency and cost control.
- Task allocation. Outsourcing splits administrative responsibilities between the in-house and offshore teams, allowing 24-hour customer service.
- Flexibility. Scalability allows the energy company to respond quickly to changing customer requirements and requests. It swiftly adjusts operations to improve the chances of success.
Valuable Back-office Outsourcing Tips for Dallas Energy Companies
For the Dallas energy sector to maximize its outsourcing initiatives for better savings, productivity, and performance, the following six pointers are helpful:
- Set goals and requirements. Build a BPO long-term planning strategy. Determine the best third-party staffing level, communication channels (e.g., social media, live chat, phone calls, chatbots), and outsourcing system (offshore or nearshore) for the company’s specific needs.
- Investigate verified, viable BPO partners. Run through inquiries on every possible third-party provider. Examine their credentials, background, skills, and technology. Seek partners that can provide in-depth knowledge, such as BPO trends and predictions. Ask about their data security and confidentiality protocols.
- Generate an extensive record of service costs. To effectively control the outsourcing budget, obtain an exhaustive list of service prices, extra charges, and hidden fees from each vetted BPO prospect. Evaluate their offering rates, establish pricing strategies, and execute a cost-benefit analysis as part of comparative research.
- Prepare a request for proposal (RFP). Reduce the number of candidates. Deliver an RFP to every willing third party on the roster. Include in the document the level of the outsourced work, timeframes, financial caps, and possible solutions to probable challenges.
- Select the BPO partner that matches the business goals. Form a service-level agreement (SLA) with the new partner, specifying the required quantity and type of assistance. The SLA states the terms under which the outsourced activities will be carried out and key performance indicators (KPIs).
- Maintain interaction to monitor progress. Assess the BPO partner’s output and efficiency with the SLA. Communicate with the third-party vendor’s management frequently (online and in person) regarding execution, situation, and objectives.
