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Business process outsourcing


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Business process outsourcing

  1. 1. Prepared by:MARK LESTER SALVADOR
  2. 2.  Business Process Outsourcing Defined History of BPO BPO Trends Benefits of BPO Disadvantages of BPO Reasons for Outsourcing BPO Models Outsourced Processes
  3. 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. 4. WWII - Increased international trade1960s – 1980s - Importing turns to outsourcing1990s – Present - Services now outsourced - BPO begins
  5. 5. BPO TrendsShort term contractsIn-sourcingOutsourcing in emerging and developing marketsProcess and Best of breed outsourcingOutsourcing centers of excellence
  6. 6. Benefits of BPOCost ReductionFocus on core areasAvoid capital expendituresAssurance of best practices, skills, and technologyRevenue Increase
  7. 7. Disadvantages of BPORisk of exposing confidential dataSynchronizing the deliverablesHidden CostsLack of customer focus
  8. 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. 9. Reasons for OutsourcingCost AdvantagesInnovation and speed to marketIncreased customer satisfactionEconomies of ScaleSkill level, Quality of Service
  10. 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 andComprehensive administrative task BPO • Takes 70% responsibility of the output
  11. 11. Finance Information Technology BPOOrder Processing Human Resource Warehouse Distribution
  12. 12.  business-process-outsourcing-trends BPO.htm http://www.tutorial-