Business process outsourcing
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Business process outsourcing
- 1. Prepared by: MARK LESTER SALVADOR
- 2. Business Process Outsourcing Defined History of BPO BPO Trends Benefits of BPO Disadvantages of BPO Reasons for Outsourcing BPO Models Outsourced Processes
- 3. This is when a company contracts an outside provider for services or business processes. This might include manufacturing or back-office functions such as accounting and human resources
- 4. WWII - Increased international trade 1960s – 1980s - Importing turns to outsourcing 1990s – Present - Services now outsourced - BPO begins
- 5. BPO Trends Short term contracts In-sourcing Outsourcing in emerging and developing markets Process and Best of breed outsourcing Outsourcing centers of excellence
- 6. Benefits of BPO Cost Reduction Focus on core areas Avoid capital expenditures Assurance of best practices, skills, and technology Revenue Increase
- 7. Disadvantages of BPO Risk of exposing confidential data Synchronizing the deliverables Hidden Costs Lack of customer focus
- 8. Globalization Technology Economic downturn • Lower cost • Rapid advances in • Stagnating top competitors technology and lines information • Focus on core • Bottom line competencies • Sharp decline in pressures telecommunication cost • Economies of scale
- 9. Reasons for Outsourcing Cost Advantages Innovation and speed to market Increased customer satisfaction Economies of Scale Skill level, Quality of Service
- 10. Transactional • Handles one aspect of process only BPO • Customer owns risk of process • 3-4 aspects of a process Niche BPO • Vendor and buyer share risk of process • Handles both transactional and Comprehensive administrative task BPO • Takes 70% responsibility of the output
- 11. Finance Information Technology BPO Order Processing Human Resource Warehouse Distribution
- 14. http://www.outsourcemagazine.co.uk/articles/item/3417- business-process-outsourcing-trends http://www.callcenterphilippines.net/ http://workathomemoms.about.com/od/telecommuting/g/ BPO.htm http://www.indobase.com/bpo/bpo-benefits/index.html http://www.tutorial- reports.com/business/outsourcing/bpo/models.php
Notes de l'éditeur
- BPO Business ModelsOver the years, different models have been used for conducting business in BPO. The regular outsourcing models of on-shoring, near-shoring and offshoring are seen in BPO as well. TPI, a sourcing advisory, has observed that in addition to on-shoring, near-shoring and offshoring, BPO operations are also conducted through the following threebusiness models :• Transactional BPO: Transactional BPO handles one aspect of a process only. The customer has to carry out a significant part of the process in-house and hence the customer owns the risk of the process. Also, outsourcing many aspects of the process in a transactional mode leads to complex fragmentation which can pose as a threat to productive delivery.• Niche BPO: A niche BPO carries out 3-4 aspects of a process. A niche BPO, which also makes certain investments in the customer's process, aims at improving the efficiency of the process. The vendor in a niche BPO works in close coordination with the buyer, sometimes seeking the services of the customer's employees. Both the vendor and the buyer share the risk of the process.• Comprehensive BPO: A comprehensive BPO handles both transactional and administrative tasks in a process and takes 70 percent responsibility of the output. The vendor purchases the buyer's assets and also hires most of its employees. Comprehensive BPO has bulk deals lasting for 7-10 years.