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Business Process Outsourcing 1 (BPO1)
(Module 2)
1
Fundamentals of
Outsourcing
(Module 2)
Business Process Outsourcing 1 (BPO1)
(Module 2)
2
Topical Overview
• Types of Outsourcing
• Outsourcing as a Business Strategy
• Outsourced Activities/Processes
• Readiness Assessment
• Technologies and Trends
Business Process Outsourcing 1 (BPO1)
(Module 2)
3
Four (4) Types of Outsourcing
• Professional
• Manufacturing
• Process-specific, and
• Operational
http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm
Business Process Outsourcing 1 (BPO1)
(Module 2)
4
Professional Outsourcing
• accounting, legal, purchasing, information technology support and other
specialized services
Manufacturing Outsourcing
• industry-specific
Business Process Outsourcing 1 (BPO1)
(Module 2)
5
Process Specific Outsourcing
• different parts or components manufactured by other companies
Operational Outsourcing
• services that specialize in specific activities like cleaning, landscaping,
facilities maintenance and property management
Business Process Outsourcing 1 (BPO1)
(Module 2)
6
Outsourcing as a Business Strategy
• it improves efficiency, cuts costs, speeds up product development, and
allows companies to focus on their “core competencies
http://www.fespa.com/news/features/why-is-outsourcing-a-good-business-strategy.html
Business Process Outsourcing 1 (BPO1)
(Module 2)
7
Outsourced Activities/Processes
The purpose of outsourcing is to ensure best practice in key business
components by divesting itself of non-core activities.
Non-core activities are items that are considered outside of normal activities
or operations, while Core activities are items considered central to operations.
http://www.themoscowtimes.com/business_for_business/article/business-processes-for-outsourcing-core-vs-non-core/431012.html
Business Process Outsourcing 1 (BPO1)
(Module 2)
8
Readiness Assessment
• evaluates the institution’s overall readiness to begin a project
• identifies areas needing more attention
• makes recommendations that increase project success such as:
o the institution’s goals and objectives for the project
o expectations and concerns of the affected functional areas
o leadership alignment to support this project
o the institution’s adaptability to change
o strategies for minimizing potential project risks
o project governance and decision-making structures
http://www.projectcoachingcenter.com/project-consulting-services/project-readiness-assessment
Business Process Outsourcing 1 (BPO1)
(Module 2)
9
Value of a Readiness Assessment
• sets up the project for success by identifying key areas of potential failure.
o Identifies gaps in readiness and recommended actions to close them.
o Solidifies project goals and expectations.
o Prepares the institution for the selection process.
o Indentifies and engages campus stakeholders early.
o Prepares leaders for managing the complexity and challenges of this
project.
Business Process Outsourcing 1 (BPO1)
(Module 2)
10
Technologies and Trends
• IT has become central to the provision of outsourced business processes
o IT’s growing role in the BPO
o Adding greater value
o Transforming processes
o CIOs are changes agents
• IT trends are shaking up the business sector, putting CIOs at the forefront
of planning.
http://www.computerweekly.com/feature/How-technology-is-changing-BPO
Business Process Outsourcing 1 (BPO1)
(Module 2)
11
IT’s Growing Role in the BPO
Technologies such as cloud computing, business analytics software, social
media platforms and process automation software are being used within BPO
to enable businesses to lower costs and be more effective.
Adding Greater Value
Through additional technology-based services, customers will get more for
their money, while supplier business models will change, with less reliance on
providing human resources.
Business Process Outsourcing 1 (BPO1)
(Module 2)
12
Transforming Processes
BPO today is about mining the huge volume of transactional data that is
being processed. BPO providers and their clients today are using the provider’s
industry expertise and insight, analytics and innovation to help a client tap into
that information to operate its business better and drive business outcomes.
CIOs as Change Agents
The CIO plays a key role in helping to elevate the role of IT to a business
enabler and source of competitive advantage. The CIO’s role will increasingly
deal with information rather than technology.
Business Process Outsourcing 1 (BPO1)
(Module 2)
13
References
1) http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm
2) http://www.fespa.com/news/features/why-is-outsourcing-a-good-business-strategy.html
3) http://www.themoscowtimes.com/business_for_business/article/business-processes-for-
outsourcing-core-vs-non-core/431012.html
4) http://www.projectcoachingcenter.com/project-consulting-services/project-readiness-
assessment
5) http://www.projectcoachingcenter.com/project-consulting-services/project-readiness-
assessment
6) http://www.computerweekly.com/feature/How-technology-is-changing-BPO

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BPO1-Module-2-FUNDAMENTALS-OF-BPO.pdfjhh

  • 1. Business Process Outsourcing 1 (BPO1) (Module 2) 1 Fundamentals of Outsourcing (Module 2)
  • 2. Business Process Outsourcing 1 (BPO1) (Module 2) 2 Topical Overview • Types of Outsourcing • Outsourcing as a Business Strategy • Outsourced Activities/Processes • Readiness Assessment • Technologies and Trends
  • 3. Business Process Outsourcing 1 (BPO1) (Module 2) 3 Four (4) Types of Outsourcing • Professional • Manufacturing • Process-specific, and • Operational http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm
  • 4. Business Process Outsourcing 1 (BPO1) (Module 2) 4 Professional Outsourcing • accounting, legal, purchasing, information technology support and other specialized services Manufacturing Outsourcing • industry-specific
  • 5. Business Process Outsourcing 1 (BPO1) (Module 2) 5 Process Specific Outsourcing • different parts or components manufactured by other companies Operational Outsourcing • services that specialize in specific activities like cleaning, landscaping, facilities maintenance and property management
  • 6. Business Process Outsourcing 1 (BPO1) (Module 2) 6 Outsourcing as a Business Strategy • it improves efficiency, cuts costs, speeds up product development, and allows companies to focus on their “core competencies http://www.fespa.com/news/features/why-is-outsourcing-a-good-business-strategy.html
  • 7. Business Process Outsourcing 1 (BPO1) (Module 2) 7 Outsourced Activities/Processes The purpose of outsourcing is to ensure best practice in key business components by divesting itself of non-core activities. Non-core activities are items that are considered outside of normal activities or operations, while Core activities are items considered central to operations. http://www.themoscowtimes.com/business_for_business/article/business-processes-for-outsourcing-core-vs-non-core/431012.html
  • 8. Business Process Outsourcing 1 (BPO1) (Module 2) 8 Readiness Assessment • evaluates the institution’s overall readiness to begin a project • identifies areas needing more attention • makes recommendations that increase project success such as: o the institution’s goals and objectives for the project o expectations and concerns of the affected functional areas o leadership alignment to support this project o the institution’s adaptability to change o strategies for minimizing potential project risks o project governance and decision-making structures http://www.projectcoachingcenter.com/project-consulting-services/project-readiness-assessment
  • 9. Business Process Outsourcing 1 (BPO1) (Module 2) 9 Value of a Readiness Assessment • sets up the project for success by identifying key areas of potential failure. o Identifies gaps in readiness and recommended actions to close them. o Solidifies project goals and expectations. o Prepares the institution for the selection process. o Indentifies and engages campus stakeholders early. o Prepares leaders for managing the complexity and challenges of this project.
  • 10. Business Process Outsourcing 1 (BPO1) (Module 2) 10 Technologies and Trends • IT has become central to the provision of outsourced business processes o IT’s growing role in the BPO o Adding greater value o Transforming processes o CIOs are changes agents • IT trends are shaking up the business sector, putting CIOs at the forefront of planning. http://www.computerweekly.com/feature/How-technology-is-changing-BPO
  • 11. Business Process Outsourcing 1 (BPO1) (Module 2) 11 IT’s Growing Role in the BPO Technologies such as cloud computing, business analytics software, social media platforms and process automation software are being used within BPO to enable businesses to lower costs and be more effective. Adding Greater Value Through additional technology-based services, customers will get more for their money, while supplier business models will change, with less reliance on providing human resources.
  • 12. Business Process Outsourcing 1 (BPO1) (Module 2) 12 Transforming Processes BPO today is about mining the huge volume of transactional data that is being processed. BPO providers and their clients today are using the provider’s industry expertise and insight, analytics and innovation to help a client tap into that information to operate its business better and drive business outcomes. CIOs as Change Agents The CIO plays a key role in helping to elevate the role of IT to a business enabler and source of competitive advantage. The CIO’s role will increasingly deal with information rather than technology.
  • 13. Business Process Outsourcing 1 (BPO1) (Module 2) 13 References 1) http://www.wisegeek.com/what-are-the-different-types-of-outsourcing-services.htm 2) http://www.fespa.com/news/features/why-is-outsourcing-a-good-business-strategy.html 3) http://www.themoscowtimes.com/business_for_business/article/business-processes-for- outsourcing-core-vs-non-core/431012.html 4) http://www.projectcoachingcenter.com/project-consulting-services/project-readiness- assessment 5) http://www.projectcoachingcenter.com/project-consulting-services/project-readiness- assessment 6) http://www.computerweekly.com/feature/How-technology-is-changing-BPO