BENCHMARKING

Student,
Maria Adelina Boloag
 BENCHMARKING

A measurement of the quality of an organization's policies,

products, programs, strategies, etc., and their comparison with
standard measurements, or similar measurements of its peers.

The objectives of benchmarking are

to determine what and where improvements are called for,
(2) to analyze how other organizations achieve their high
performance levels, and
3) to use this information to improve performance.
 BENCHMARKING

Benchmarking involves looking outward (outside a particular business,

organisation, industry, region or country) to examine how others achieve
their performance levels, and to understand the processes they use.

In this way, benchmarking helps explain the processes behind excellent

performance. When lessons learned from a benchmarking exercise are
applied appropriately, they facilitate improved performance in critical
functions within an organisation or in key areas of the business.
 BENCHMARKING - STEPS

The application of benchmarking involves four key steps:

Understand in detail existing business processes

Analyse the business processes of others
Compare own business performance with that of others
analysed
Implement the steps necessary to close the performance gap
 TYPES OF BENCHMARKING

Strategic Benchmarking

Performance or Competitive Benchmarking

Process Benchmarking

Functional Benchmarking

Internal Benchmarking

External Benchmarking

International Benchmarking
 BENCHMARKING -
STRATEGIC

Used when businesses need to improve overall

performance, strategic benchmarking examines the
long-term strategies and general approaches that
have enabled high-performers to succeed
It involves considering high level aspects such as core
competencies, developing new products and services,
and improving capabilities for dealing with changes in
the external environment
Changes resulting from this type of benchmarking
may be difficult to implement and take a long time to
materialise
 BENCHMARKING

What are the typical application areas in tourism?

The review of past benchmarking literature showed that there are a substantial
number of both
conceptual and empirical attempts to formulate a benchmarking approach.
Focus and
methodologies used in benchmarking studies in tourism can be very different
according to the
application field. In principle, benchmarking in tourism can be classified into:
1. Benchmarking of profit-oriented tourism businesses
• Accommodation suppliers (Hotels, motels, bed and breakfast places, pensions,
camping sites, etc.)
• Restaurants (all forms)
• Tour operators and travel agencies
• Airlines
• Other profit-oriented tourism service provider (e.g. amusement parks, diving
schools
etc.)
 BENCHMARKING

2. Benchmarking of non-profit oriented tourism

businesses/organizations
• National or regional tourist boards/organizations
• Attractions operated by public authorities or other forms
of non-profit oriented
businesses (e.g. museums, galleries, theatres, operas, etc.)
3. Destination Benchmarking
• National benchmarking
• Regional benchmarking
• Local (rural or urban) benchmarking
 OUTSOURCING

In business, outsourcing involves the contracting out of a business

process (e.g. payroll processing, claims processing) and operational,
and/or non-core functions (e.g. manufacturing, facility management,
call center support) to another party (see also business process
outsourcing).
The concept "outsourcing" came from the American Glossary 'outside
resourcing' and it dates back to at least 1981. Outsourcing sometimes
involves transferring employees and assets from one firm to another,
but not always. Outsourcing is also the practice of handing over control
of public services to private enterprise
 OUTSOURCING

Outsourcing includes both foreign and domestic contracting, and

sometimes includes offshoring (relocating a business function to a
distant country) or nearshoring (transferring a business process to a
nearby country).
Many people confuse outsourcing and offshoring – however they are
different. A company can outsource (work with a service provider) and
not offshore to a distant country.
 WHY ROMANIA?

Romania has an ever increasing reputation as an attractive

outsourcing destination. Indeed, the 2014 A.T. Kearney
index ranked Romania 5th among the most attractive
outsourcing destinations in Europe. Also, according to the
Times Outsourcing Business supplement 2012, Romania
occupies 6th position globally in the top 10 emerging
outsourcing destinations. Also, a 2014 study by KPMG
ranked Romania as the fastest growing market in the
European Union in terms of IT outsourcing services.

Thanks to Romania’s abundance of professionally very well

prepared, multilingual and highly skilled labor pool, and
cultural proximity to Western Europe the country has been
climbing in the ranking among the most preferred
outsourcing hubs for European and North American
companies.
 WHY ROMANIA?

Geographical (1-2 hour flights) and cultural (business ethics) proximity to

Western Europe facilitating close relationship between client and vendor
compared to offshore locations

– Strong aptitude for multilingual skills

– Knowledgeable and experienced IT workforce

– Academic readiness to back high demand in talent pool continuity

– The right price-quality ratio

– EU member state, which simplifies legal and financial issues

– Political and economic stability

OUTSOURCING ROMANIA