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K.S.

Bala Aadithan | BBA ‘A” |

BPO
BUSINESS PROCESS OUTSOURCING

It seems wholly unlikely that new barriers will be erected that will seriously limit global free trade. we have developed a rigorous methodology that businesses can use to analyze the outsourcing opportunity. A natural extension of the free-trade juggernaut that has dominated global economics over the past two decades. Workers whose lives have been disrupted because their jobs have been outsourced to lower-wage workers overseas have understandably decried “offshoring” as a threat to their way of life. to make informed decisions about choosing a vendor. and to manage change and execute an outsourcing project. Others. We do not address the political or economic controversies swirling around outsourcing. we attempt to examine BPO from the perspective of its application and implementation in businesses of all sizes. we assume that the movement of service work to lowestcost providers.S. especially those in the foreign locations where new jobs are rapidly being created. In this book. consumers.Business process outsourcing (BPO) has emerged as one of the leading business and economic issues of our time. With that in mind. will continue in some form. promises lower prices on a wide range of goods and services for U. Rarely has there been such highlevel discourse about a legal business activity that. Presidential politics have also weighed in on BPO—with both parties articulating their positions on the issue. BPO has been met with mixed emotions. in the long run. Instead. no matter where they may reside. The teambased approach to BPO project analysis and PAGE 1 . are elated about the opportunity to apply their hard-earned and high-value skills.

effective BPO management requires a diverse skill set that is not likely to be present in any single individual. That is. As a socio-technical phenomenon. one of the primary enablers of BPO is the set of technologies that have emerged to connect the world in a global communications network. History of BPO: • World War II – Increased international trade • 1960s – 1980s – Importing turns to outsourcing • 1990s – Present – Services now outsourced PAGE 2 .implementation is based on the fact that BPO is a sociotechnical phenomenon. BPO is transformational to the organization and requires attention to the social and human impacts that accompany business transformation. At the same time. a well-executed outsourcing project must involve both social and technical resources of the organization. we recommend a team-based approach since the necessary skills are more like to be available in a group of people united to achieve common objectives. Thus.

– BPO begins Benefits: Reasons for Adopting BPO: PAGE 3 .

BPO Revolution: BPO Advantages:  Productivity Improvements  Focus on Core Business Competency  Increased Capability PAGE 4 .

 Improved HR  Cost BPO Disadvantages: • Knowledge Disappears and is Transferred to the Outsourcing Partner • Knowledge Disappears and is Transferred to the Outsourcing Partner • Poor Quality Control • Restoring Operations is Complicated • Lack of Loyal Employees • Reduction in Strategic Alignment PAGE 5 .