Presentation on

Executing
Outsourcing
Project. MBA HONS 2.4
Definition of BPO

Business Process Outsourcing

BPO is when a company hires another company(3rd
Party) to handle some of its business operations in
order to save money and improve efficiency.

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Common business processes outsourced

▫ Customer Service
▫ Accounting and bookkeeping
▫ Human Resource
▫ IT support/ Technology
▫ Marketing and Advertising
▫ Logistics and Supply Chain Management

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Company A

Company B

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Process of vender assessment
and selection

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1. Define Requirements
Identifying the products or services that are needed, the
quantity required, the quality standards to be met, and
any specific features or attributes that are necessary.
2. Identify Potential
Vendors:
This can be done through market research, industry
contacts, or by issuing a request for proposal (RFP) or
request for quotation (RFQ) to potential vendors.
3. Evaluate Vendors:
Evaluates potential vendors based on several criteria,
including the quality of their materials, pricing, delivery
times, production capacity, environmental and safety
compliance, financial stability, and reputation in the
industry. They might use a vendor evaluation scorecard
to rate and rank potential vendors.
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4. Conduct Site Visits:
If necessary, the organization may choose to conduct
site visits to assess the vendor's facilities and
capabilities. This can involve inspecting the vendor's
production processes, quality control systems, and
overall infrastructure.
5. Check References:
The organization may also choose to check references
from other clients or customers of the vendor to
determine their reliability, responsiveness, and overall
satisfaction with the vendor's products or services.
6. Negotiate Contracts:
Negotiate a contract that outlines the terms and
conditions of the purchase, including pricing, delivery
schedules, quality standards, warranties, and service
agreements. They might also negotiate volume
discounts and other favorable terms based on the size of
the order.
7. Monitor Performance:
By conducting regular inspections and testing of the raw
materials, tracking their quality, and checking in with the
vendor to ensure they are meeting the agreed-upon
standards and delivering materials in a timely and
reliable manner.
Thanks!

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