Business process outsourcing - Entrep Report AGSB 2012

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my report for my entrep class: BPOs

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Business process outsourcing - Entrep Report AGSB 2012

  1. 1. BUSINESS PROCESSOUTSOURCINGKathleen Lizette C. Crisostomo – ENTREP
  2. 2. Business process outsourcing(BPO) involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider
  3. 3. Business process outsourcing(BPO) involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider Originally associated with manufacturing firms which outsource segments of its supply chain (logistics, subcontractors, etc.)
  4. 4. Business process outsourcing(BPO) involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider Originally associated with manufacturing firms which outsource segments of its supply chain (logistics, subcontractors, etc.) Contemporary context: replacing in-house services with labor from an outside firm
  5. 5. ManufacturingCompany
  6. 6. Payrol lManufacturingCompany
  7. 7. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ?ManufacturingCompany
  8. 8. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ? Financial Services FirmManufacturingCompany
  9. 9. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ? Financial Services FirmManufacturingCompany Payroll Specialist
  10. 10. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ? Financial Services FirmManufacturingCompany Payroll Mone Specialist y
  11. 11. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ? Financial Services FirmManufacturingCompany Payroll Time Mone Specialist y
  12. 12. •Takes too much time •Not their expertise Payrol •Costly: salaries, time, equipment l ?? ? Financial Services FirmManufacturingCompany Payroll Time Mone SpecialistSatisfactio y
  13. 13. VIDEO!Outsourced
  14. 14. Common formsBack-OfficeOutsourcing•Internal businessprocesses•Ex. Finance, HR
  15. 15. Common formsBack-Office Front-OfficeOutsourcing Outsourcing•Internal business •Customer-relatedprocesses processes•Ex. Finance, HR •Ex. Contact Center
  16. 16. Terminologies Nearshore Outsourcing  BPO that is contracted to a companys neighboring (or nearby) country
  17. 17. Terminologies Nearshore OutsourcingSpanish Speaking Call Relocation of the Center based in Los program to Mexico Angeles
  18. 18. Terminologies Offshore Outsourcing (a.k.a. Offshoring)  BPO that is contracted outside a companys country
  19. 19. Terminologies Offshore Outsourcing (a.k.a. Offshoring) Technical support Relocation of theaccount for a telecom program to The company based in Philippines Chicago
  20. 20. What’s emerging in thePhilippines? Call Centre Legal, medical and financial transcription Finance and accounting ITES (Information Technology Enabled Service) Supply Chain and Logistics Knowledge Process Outsourcing (higher level: R&D, product development and legal e- discovery)
  21. 21. Outsourcing your Business Gartner’s Outsourcing Model1. Sourcing Strategy • “Why am I doing this?”  transform the business? Cost savings? Increase revenue? • "What kind of relationship do I want with a provider?” • What to keep in-house and what to outsource (risk management)
  22. 22. Outsourcing your Business Gartner’s Outsourcing Model2. Evaluation and Selection • Expertise vs. price • “Should I go offshore?”
  23. 23. Outsourcing your Business Gartner’s Outsourcing Model3. Contract Development • Long enough to make a difference but short enough to measure flexibility • An outsourcing contract often results in deep, long-lasting changes in strategy • It takes time to outsource; if you want to return to in-house, it will also take time
  24. 24. Outsourcing your Business Gartner’s Outsourcing Model4. Sourcing Management • Whats done after the contracts are already in place • Service Level Agreement (SLA) • Vendor and client should re-evaluate the contract and the relationship periodically (Is the service provider meeting their requirements? Are there some requirements clients have to meet?)
  25. 25. BUSINESS PROCESSOUTSOURCINGKathleen Lizette C. Crisostomo – ENTREP
  26. 26. References Blacharski, D. (2012). The Basics of Business Process Outsourcing. Sourcing Mag. Retreived June 3, 2012 from http://www.sourcingmag.com/content/c060405 a.asp Outsourcing-Gartner. Gartner Research. Retrieved June 4, 2012 from http://www.gartner.com/technology/core/produ cts/research/topics/outsourcing.jsp Wikipedia

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