BPO

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

BUSINESS PROCESS OUTSOURCING:

BUSINESS PROCESS OUTSOURCING PRESENTED BY:-- SOHAIL YOUSUF REGD NO:--064

OUTSOURCING DEFINITION:

OUTSOURCING DEFINITION Outsourcing is the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees. Often the tasks that are outsourced could be performed by the company itself, but in many cases there are financial advantages that come from outsourcing. Many large companies now outsource jobs such as call center services, e-mail services, and payroll . These jobs are handled by separate companies that specialize in each service, and are often located overseas.

DEFINITION:

DEFINITION Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.

Slide 4:

BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting , and front office outsourcing - which includes customer-related services such as contact centre services

Slide 5:

BPO that is contracted outside a company's country is called offshore outsourcing . BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing . Often the business processes are information technology -based, and are referred to as ITES-BPO , where ITES stands for Information Technology Enabled Service . Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

Slide 6:

Benefits An advantage of BPO is the way in which it helps to increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways. Another way in which BPO contributes to a company’s flexibility is that a company is able to focus on its core competencies , without being burdened by the demands of bureaucratic restraints.Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses. The key lies in knowing which of the main value drivers to focus on – customer intimacy , product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a competitive edge .

THREATS:

THREATS Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective. For example, security of North American or European company data is more difficult to maintain when accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its contractor . Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats, a Business continuity management (BCM) model is set up. BCM consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced .

Slide 8:

THANK YOU

authorStream Live Help