Business Process Outsourcing (BPO)

In a deflationary economic environment, every manager is focused on reducing expenditures. A cost cutting economy, increasing globalization, the Internet infrastructure, and e-business applications are rapidly converging to facilitate a new business mega-trend: Business Process Outsourcing (BPO).

The philosophy behind BPO is simple, stick to what you do best (core competencies) and leaves everything else to low cost third party providers (or business process outsourcers). The business rationale behind BPO is save money and focus scarce management resources on a few core competencies. The list of functions being outsourced is growing to include IT outsourcing, call centers, order entry, billing, human resources administration, internal audit, and payroll.

BPO strategies enabled by technology are gaining momentum. In fact, some clever companies are taking advantage of the structural changes in the economy to distance themselves from competition. This seminar will introduce, explain, and explore business process outsourcing services, an innovative business strategy that involves outsourcing various processes to reduce costs and increase customer satisfaction.

Business Process Outsourcing is the long term contracting of a company's business processes to an outside service provider to help increase shareholder value, produce increased efficiencies permitting greater focus on core competencies. BPO started as a move to take cost out of the business by farming out non core business processes now becoming strategic outsourcing to reshape company. Reinvigorating old processes to give competitive advantage. BPO covers front office, mid office and back office functions but also logistics, facilities management etc. Specialist range of suppliers with domain skills quite often joint venture arrangements. Most deals one to one but future will be developing one to many solutions utility computing.

Outsourcing as a Summary

• Many businesses still view outsourcing as a means of cutting operational and capital costs out of non-core activities

• Collaborative relationships with outsource business partners to focus on driving additional value from a more sophisticated relationship

• Outsourcers will now share some of the financial risk and may receive a share of cost savings rather than a fixed fee.

• Business Process Outsourcing (BPO) the long term contracting out of business processes such as human resources is gaining momentum

• Offshore Outsourcing is now becoming a viable proposition for both technical and business processes.

• Business process transformation to optimise business performance is also gaining ground.