Business Process Outsourcing (BPO) Strategy

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A Business Process Outsourcing (BPO) Strategy is an outsourcing strategy that overlaps with a business process reengineering strategy (uses outsourcing to delegate specific business operations and processes to external service providers).



References

2024

  • (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Outsourcing#Business_Process_Outsourcing Retrieved:2024-9-5.
    • Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain.[1]

      BPO is typically categorized into back office and front office outsourcing.[2] BPO can help your business remain competitive and efficient by leveraging the expertise of other companies that are more specialized in certain functions.[3]

      BPO can be offshore outsourcing, near-shore outsourcing to a nearby country, or onshore outsourcing to the same country. Information technology-enabled service (ITES-BPO),[4] knowledge process outsourcing (KPO) and legal process outsourcing (LPO), a.k.a. legal outsourcing, are some of the sub-segments of BPO.

      Although BPO began as a cost-reducer, changes (specifically the move to more service-based rather than product-based contracts), companies now choose to outsource their back-office increasingly for time flexibility and direct quality control.[5] Business process outsourcing enhances the flexibility of an organization in different ways:

    • BPO vendor charges are project-based or fee-for-service, using business models such as remote in-sourcing or similar software development and outsourcing models.[6][7] This can help a company to become more flexible by transforming fixed into variable costs.[8] A variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible.[9]

      < BPO also permits focusing on a company's core competencies.[10]

      Supply chain management with effective use of supply chain partners and business process outsourcing can increase the speed of several business processes.[1]

2015

  1. 1.0 1.1 Tas, Jeroen; Sunder, Shyam (May 2004). "Financial services business process outsourcing". Communications of the ACM 47 (5): 50–52. doi:10.1145/986213.986238. 
  2. "Getting A Piece Of Business Process Outsourcing". Forbes. https://www.forbes.com/sites/greatspeculations/2015/06/22/getting-a-piece-of-business-process-outsourcing/#12b9f2c56f90. 
  3. "4 Advantages of Business Process Outsourcing (BPO) | Euromos Global" (in en-GB). 2022-09-24. https://euromosglobal.com/4-advantages-of-business-process-outsourcing-bpo/. Retrieved 2022-10-19. 
  4. J. G. Nellis; David Parker (2006). Principles of Business Economics. Financial Times Prentice Hall. p. 213. ISBN 978-0-273-69306-2. https://books.google.com/books?id=a8RFUZHfz2gC&pg=PA213. 
  5. Sagoo, Anoop. "How IT is reinvigorating business process outsourcing" CIO. 6 Sep 2012. Retrieved 25 March 2013.
  6. BPM Watch. "In-Sourcing Remotely: A Closer Look at an Emerging Outsourcing Trend" "In-sourcing…Remotely: A Closer Look at an Emerging Outsourcing Trend". http://www.bpmwatch.com/columns/in-sourcing-a-closer-look-at-an-emerging-outsourcing-trend. 
  7. "Boundaries between IT outsourcing and BPO are becoming blurred: Ovum". http://www.cio-asia.com/mgmt/outsourcing/boundaries-between-it-outsourcing-and-bpo-are-becoming-blurred-ovum/. 
  8. Willcocks, Leslie; Hindle, John; Feeny, David; Lacity, Mary (June 2004). "It and Business Process Outsourcing: The Knowledge Potential". Information Systems Management 21 (3): 7–15. doi:10.1201/1078/44432.21.3.20040601/82471.2. 
  9. Gilley, K. Matthew; Rasheed, Abdul (August 2000). "Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance". Journal of Management 26 (4): 763–790. doi:10.1177/014920630002600408. 
  10. Kakabadse, Andrew; Kakabadse, Nada (April 2002). "Trends in Outsourcing". European Management Journal 20 (2): 189–198. doi:10.1016/S0263-2373(02)00029-4. 
  11. Tas, J. & Sunder, S. 2004, Financial Services Business Process Outsourcing, Communications of the ACM, Vol 47, No. 5
  12. Balana, Cynthia D. and Lawrence de Guzman. (December 5, 2010). It's official: Philippines bests India as No. 1 in BPO. The Philippine Daily Inquirer.
  13. http://www.gmanetwork.com/news/story/63053/economy/companies/philippines-still-top-bpo-destination-consulting-firm

2014