Business process outsourcing

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Business process outsourcing

  1. 1. Management and Information System COMP 4153
  2. 2.  To procure (as some goods or services needed by a business or organization) under contract with an outside supplier.
  3. 3.  is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third- party service provider.
  4. 4. BPO is the process of hiring another company to handle business activities for you.
  5. 5. Back Office Outsourcing  which includes internal business functions such as human resources or finance and accounting.  - which includes customer- related services such as contact center services. Front Office Outsourcing
  6. 6. Offshore Outsourcing  BPO that is contracted outside a company's country.  BPO that is contracted to a company's neighboring (or nearby) country. Nearshore Outsourcing
  7. 7.  Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub- segments of business process outsourcing industry.  KPO includes those activities that require greater skill, knowledge, education and expertise to handle.  LPO is the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company (LPO provider).
  8. 8.  In 2010, the Philippines surpassed India as the largest business process outsourcing industry in the world.
  9. 9.  Most services provided by BPO vendors are offered on a fee-for-service basis, using business models such as Remote In-Sourcing or similar software development and outsourcing models.
  10. 10.  A company is able to focus on its core competencies, without being burdened by the demands of bureaucratic restraints. . Focusing more on one of these drivers may help a company create a competitive edge.
  11. 11.  Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company.
  12. 12.  BPO allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded.  It avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation.
  13. 13.  A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility.
  14. 14.  They often provide similar services, have similar geographic footprints, leverage similar technology stacks, and have similar Quality Improvement approaches.
  15. 15.  Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective.
  16. 16.  Maximizing positive outcome.  Minimizing risks.  Avoiding any threats.  A Business Continuity Management (BCM) model is set up.  Business Continuity Management (BCM)- consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced.
  17. 17. Paulyne C. Flores BSHM2-1D
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