Colegio de San Gabriel Arcangel

PACUCOA Accredited – Level 1 Status

COLLEGE DEPARTMENT
City of San Jose del Monte,Bulacan

LEARNING ACTIVITY
1
Name : ______________________________ Grade / Score : _______________
Year level : ___________________ Course : _______________
Subject : _Business Process Outsourcing_Date : _____________
Type of Activity (Check or choose from below)
Concept Notes Laboratory Report Formal Theme
Others:
Skills: Exercise / Drill Illustration Informal Theme
____________

Activity Title : What is So Revolutionary about BPO?

Learning Target : I can understand the theory behind
References :
(Author, Title, Pages) : Business Process Outsourcing The Competitive Advantage

Click, Rick L.; Duening, Thomas N.

Discussion:

Chapter I: What is So Revolutionary about BPO?

BPO Review

BPO Drivers:

 Broadband internet – broadband refers to the growing pipeline capacity of the Internet,
allowing larger chunks of information to flow with fewer congestion issues. Broadband
is the term used to refer to Internet connectivity speeds that are in the range of 2
megabits/second (2 million bits/second).
 Business Specialization
 Educational Attainment
 Inexpensive Data Storage – data storage has always been a critical resource for
business. In the days of paper-based record keeping, data storage was primarily
accomplished via file cabinets, closets, and dingy overstuffed basements.
 Online Analytic Processing – Software is a major source of business competitiveness, as
well as a major source of headaches for anyone who has ever booted a computer.
Originally invented as a tool for us to work with, software has increasingly been
designed to perform work for us. Expert systems, decision support systems, and artificial
intelligence all are software tools that perform analytic tasks.
 Internet Security – refers to the ability to send information and data (including voice)
over the Internet without fear of leakage, espionage, or outright loss. It is critical for
companies to be certain that their data integrity will be maintained despite its
movement around the globe in the servers, routers, and computers that make up the
World Wide Web.

BPO Types:

Business process outsourcing has usually been discussed in terms of the international
relocation of jobs and workplace functions. There are three types of BPO: offshore,
onshore, and nearshore.

Offshore

Offshore BPO is the most challenging type of this relatively new approach to conducting
business but potentially the most rewarding. It began with movement of factory jobs to
overseas locations and has been made both famous and infamous with stories of suddenly
prosperous geographic regions mixed with stories of exploitative labor practices.

Onshore

It would be a mistake to conceive of BPO only as an international business phenomenon.

Many U.S. businesses are outsourcing back-office functions to firms based in America.

There are many reasons that a firm will use BPO. The cost savings that result from moving
back-office processes to low-wage environments is the most oft-cited one. However, firms
can also use BPO to transfer service functions to best-in-class performers to gain
competitive advantage.

Nearshore

Nearshore outsourcing is a relatively new term that is used to refer the practice of
outsourcing on the North American continent. International issues will arise when American
firms outsource to Mexico, Canada, or Central America, but they are likely to be less
complex than those that attend outsourcing arrangements in, say, India or China. Nearshore
outsourcing allows companies to test the BPO waters without the level of risk associated
with going offshore.
To BPO or Not to BPO? A strategic Question

BPO has managers around the world asking what it can do for them and what it might do to
them. They are excited about the potential for BPO to help them manage costs and improve
their balance sheets. Under constant pressure from analysts to control headcount,
outsourcing back-office activities to contract laborers in remote corners of the world can
provide welcome and quick relief.

Many managers are also concerned about the risks of BPO. They are unsure about the
information security issues associated with outsourcing back-office processes.

Chapter 2: Who is Using BPO and How?

The BPO revolution is evolving as we write, but many firms have already pioneered
dramatic new ways of utilizing outsourcing to reduce costs, improve competitive position,
and introduce new organizational strategies.

The chapter concludes with reflections on what can be learned from these cases and how to
use other cases as models for your organization. These brief case studies highlight firms that
have outsourced one or more business processes based on the following themes:

Successful offshore outsourcing

The exploration of how companies are using BPO will begin with a story about a successful
offshore initiative.

Competence co-development outsourcing

Companies often outsource business processes that have no clear match with potential
vendors. This scenario happens most often when the buyer is considering outsourcing a
complex process, the boundaries of which are ambiguous or touch on the buyer’s core
competence.

Variable-Price Outsourcing

There are a variety of pricing approaches to BPO. By far the most common approach is the
fixed-price contract where a vendor manages a buyer’s process and gets paid a fee based on
meeting pre establishes performance benchmarks. Fixed-price contracts, however, can be
imposing for small-to medium sized enterprises (SMEs) or for firms that are struggling to
meet financial goals.
First-Time Outsourcing

Many managers reading this book are employed by companies that have never undertaken
a BPO initiative or whose culture is generally opposed to BPO. Closely held family
companies, for example, may believe that it is contrary to their culture and values to
consider outsourcing work to an external party.

Reverse Outsourcing

Another interesting twist on the outsourcing revolution is the conversion of a business

competence into a revenue-generating business service, a process we call reverse
outsourcing. This is not new, of course. Companies have developed new revenue lines out
of business competencies developed from within for generations.

Activity#2: Essay type

1. Differentiate the 3 types of BPO. Give an example for each.

2. What are the advantages and disadvantages in using BPO? List your answers.
Activity: Essay Type

Colegio de San Gabriel Arcangel

PACUCOA Accredited – Level 1 Status
 COLLEGE DEPARTMENT
City of San Jose del Monte,Bulacan

LEARNING ACTIVITY
2
Name : ______________________________ Grade / Score : _______________
Year Level : ___________________ Course : _______________
Subject : _Consumer Behavior______ Date : _5/28/2020________________
Type of Activity (Check or choose from below)
Concept Notes Laboratory Report Formal Theme Others:
Skills: Exercise / Drill Illustration Informal Theme ____________

Activity Title :
Learning Target :
References :
(Author, Title, Pages) :

Activity:
 COMPILATION OF
LEARNING ACTIVITY SHEET
Consumer behavior

PREPARED BY:
Prof. Edelita g. Lazaro