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New Post 10/8/2009 1:21 AM
User is offline ALIAAA
1 posts
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Business process outsourcing  
Modified By Modern Analyst  on 10/8/2009 12:25:16 PM)

Business process outsourcing (BPO) is the utilization of an exterior service provider in order to perform a particular non-core but an important project or task in your business. These tasks which include payroll processing, accounting, consumer service, and clerical responsibilities are assigned by the company to the provider. The provider then takes the complete responsibility for these tasks by performing them according to the standards of quality settled in the agreement.

The BPO industry of US$154 billion has grown-up at an estimated rate of 10.9% per annum. In terms of revenue as well as processes and tasks, the BPO market has been constantly expanding throughout the world. The number of countries and locations that are opening up their shores to the BPO industry is also increasing day by day.

Most of the public think that savings in cost is a primary consideration in BPO. Most of the companies can pass the saving on salary and profits that would have been paid to a domestic employee to the customers in the form of lower prices of their goods and services or they can use it on other things.

Cost savings is not an only advantage of the BPO industry. BPO service providers give flexibility to the majority of the companies. Nearly all BPO dealers are firm on a fee-for-service basis. Providing this offer BPO make the company to think of these expenditures as a variable cost and not as a fixed cost. This means the company has to pay only for the level of web development Service it needs and when it needs.
Most of the businesses can grow more rapidly by contracting a BPO. Contract ing a BPO also allow most businesses to grow more rapidly. For example, a company that wants to organize a call center to expand and enhance the services provided to their customers would only need to contact a BPO company.

By contacting BPO, the company will no longer be worried about the investment costs for furniture, employees and equipment. Moreover, the company would not be apprehensive about having to source, appoint and prepare and instruct new employees for the call center. Now to all intents and purposes, the company has skilled agents in an instant. The BPO contractors also allow a person to keep more focus on his core business.
On the other hand it is significant to choose the BPO provider with full care and much thought. Immediately a company cannot trust a third party with their insider information. For this it is beneficial to ask the colleagues or others in the industry for suggestions and recommendations. Finally make a selection of the BPO dealer with a verified track record in giving their customers the remarkable services for the most cost-effective price.
 

 
New Post 10/8/2009 8:02 AM
User is offline Mark Ridgwell
13 posts
10th Level Poster


Re: Business process outsourcing  
Modified By Modern Analyst  on 10/8/2009 12:23:44 PM)

Hi Allia,

"Any job that can be codified will be outsourced, if not by you then by your competition and usually for less money" - Seth Godin, business guru

The vision for offshoring is simple: cost savings due to lower-cost workers, quality improvements due to highly educated workers, and access to scarce skills. The reality, however, does not always match the vision. The rewards are huge if offshoring is executed right, but the risks are great.

We codified what we know about this in case it helps:  Outsourcing and Offshoring

Best regards,
Mark

 

 

 
New Post 11/5/2009 3:22 AM
User is offline Craig Brown
560 posts
www.betterprojects.net
4th Level Poster




Re: Business process outsourcing  

Mark - maybe do one of these models on the buy vesus build decicion?

 
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