A Glance at the Outsourcing Process

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BPO Management: A Trend Acting Fund Raiser

he Business Process Outsourcing Management is a new eye candy that has been recently introduced in the IT Sector.his aspect of outsourcing is not a typical one but has a new turn of management in it. The companies that follow this

end have various aspects to look out for. The primary definition of BPO Management can be referred to as the complete

uthentic management of the BPO related companies as well as its various outsourcing projects, which in most of the

ses is the complete outsourcing of various kinds. The Business Process Outsourcing Management is classified into two

iteria, one of them is back office BPO that involve various aspects of the internal functions like finance, human

sources, accounting and such others. The other is Front Office BPO that mainly relates to various services connected to

stomers.

hen any aspects of the BPO management are not fulfilled, then the actual objective with which the criterion was

bserved is not met. The common mistake that people make is mixing the definition of on shore and off shore outsourcing

d thus acting accordingly. Thus the various aspects of the Business Process Outsourcing Management are not metoperly in such case. One needs to completely clear there definition of various kinds of outsourcing and then take

tions that best suits the situation.

he BPO management has recently attained an enormous stature of activity with India alone generating 11 billion US

ollars in revenues department through offshore activities achieved within various countries. Though there are various

nefits to look out apart from the generation of the liquid cash, within any economy, it also leads to increase in flexibility

ithin an economy. The prime example of this is the IT sector of India itself. Also the Business Process Outsourcing

anagement has created new opportunities for the growth of smaller business and growth of higher level business at an

en higher ground.

he main objective to look at when considering BPO management is that there is a higher option for better work flowcluding better focus on the internal activities of one company. Thus in a way this leads to the increment in the

ntingency within the core of the company activities.

hough there are always various aspects to look at before undertaking the right kind ofBusiness Process Outsourcing

anagement, still it all narrows down to the kind of outsourcing strategy that one creates and the related search for

mpletion of such objectives in order to generate enormous profits.

omments on this entry are closed.

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Business Process Outsourcing Business

What is Business Process Outsourcing?

utsourcing in general is referred to as the process of transfer of contract from a company to another sub-company which

kes care of the parent companys some part of business. Business Process Outsourcing is a specific type of outsourcing

which a particular business process or many of them are transferred to an outsourcee. The business process includes

counting, call centre operations, billing, technical support etc.

ypes of Business process outsourcing business

asically a business process outsourcing business can be categorized into two types:

Local Outsourcing: This type of outsourcing as the name suggest is done between companies located in the sameographical region, country, state etc. It can be used to reduce the workload of the parent company but as far as the

nancial benefits are concerned this type of outsourcing is not preferred and is generally avoided.

Global Outsourcing or Overseas Outsourcing: This type of outsourcing is the more preferable one and is defines as

e transfer of contract between companies which are located in different geographical areas and destinations. This type

process outsourcing business is preferred since along with the release of workload it also fosters some economical

vantage, since the destinations chosen for outsourcing are generally places which are economically developing like

dia and China, in these places the labor cost is low, and the quality of service is high, India has a greater advantage over

hina in addition to excellent Technical skill they are blessed with good English Language skills which gives India an

tra edge.

Why is Business process outsourcing business beneficial?

usiness process outsourcing business is beneficial in the following ways:

Reduction of Workload: It is due to Business Process Outsourcing that companies nowadays can take high workload

d attempt enterprises which were beyond their reach before. In this way the pace of development increases and high

mployment is generated, thereby fostering global economic development.

Reduction of Development cost: Since the work is outsourced to economically developing countries like India and

hina, the cost of operations is low, and the quality of service is high.

Increase and Optimization of Quality of Service: Since the parent company chooses the outsourcee by taking in

nsideration their requirements, by properly managing their requirements and the things they outsourced a high quality

oduct or service can be achieved. This is just like turning the whole world into a Global Village and using the bestsources available. Also the places where the services are outsourced constitute individuals having highly competent and

ofessional attitude and they provide the best service the parent company require. Unlike the employees of the parent

mpany the employees of the outsourcee do not mind working late hours or overtime in order to meet the clients

quirement. So, this ultimately increases the quality of service.

iness Process Outsourcing Business

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Business Process Outsourcing Process Management

usiness Process Outsourcing or BPO is the transfer of any business process of a particular company i.e. the outsourcera third party i.e. the outsourcee.

he processes include Accounting, Procurement, Human Resources, Asset or property management.

he whole process is supported by IT processes, which forms the key interface in the Business Process Outsourcing

dustry and without Information Technology tools Business Process Outsourcing would not have been possible. Since

ost of the companies nowadays are going for IT Process outsourcing, the amount of commodity in the market has

creased, which has caused inflation in the market. So, nowadays most of the companies prefer Business Process

utsourcing in order to meet their Business and Technological needs. Also the whole process of outsourcing helps in the

ducing costs, in the improvement of industry quality and also generates high amount of labor in the market globally.

usiness Process Outsourcing is also useful since the outsourcer is free to choose any outsourcee based on theirquirements and the skill of the outsourcee. This fosters in improving the quality of service and in the release of

orkload of the company, besides reduction in the operating cost it also helps the company to take more work and it

eeds up the different processes of the company.

or any company, BPO helps in the expansion of its services, and to offer prices which are good enough in this

mpetitive market.

ypes of BPO

PO generally falls under the following nine categories:

AdministrationCall Center

Accounting

Procurement / Logistics

Claims processing

Data Management

Human Resources Management

Miscellaneous Services

Finance

he categories mentioned above are generally made and the outsourcer is free to decide on whether it falls under these

tegories or not, often the categories are customized according to the needs of the organization.

echanism of Business Process Outsourcing Management

usiness Process Outsourcing Management takes the help of IT as a tool, without IT it would not have been possible for

e BPO industry to grow so big. The general mechanism for any BPO operation is Remote Connectivity. Using various

ftware technologies like Telnet and FTP, along with tools like remote desktop connectivity, a company based in India

n work on a US business process by just logging on to the machine of the outsourcer, handle all its work and the

ocesses and then log off when the job is complete, without having to make any postal arrangements, it has become so

mple that calls made by clients of the outsourcer can easily be attended by the employees of the outsourcee using this

ature, had there not been tools like this then overseas outsourcing would not have been possible since calls would then

d to be diverted to the country where the outsourcee is based costing the outsourcer a lot of cash.

iness Process Outsourcing Process Management

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Find out What Business Process Outsourcing Deals with

usiness Process Outsourcing is one of the fastest growing as well as rapidly covering business trends of the presentays market. Companies are going for Business Outsourcing at their utmost level. This is because of the fact that

utsourcing processes have a lot of benefits for the business of the company that practices it. Before discussing about the

usiness Process Outsourcing in detail, we should properly understand what Outsourcing is all about.

hen a company offers some of its essential processes or work to a third party, who is definitely not the consumer and in

turn pays that third part service provider for the completion of that work in behalf of that company then it is called

utsourcing. Basically the processes that are outsourced are not the core processes, but are equally important for the

mooth and proper functioning of the company.

s mentioned above that Business Process Outsourcing does not deal with any of the core processes of the companies,

e reason behind it is the risk and the threats of the Process outsourcing. There are advantages of Business outsourcing,ut at the same time there are various risks that are involved in process outsourcing. One of the major risks that are

volved with it is the lack of Security. It is not like that the processes do not have any security at all, but there are

ossible threats of security from the privacy perspective.

his arises many questions about the processes that Business Process Outsourcing deals with. Some of the processes that

e outsourced to the BPOs to deal with are as follows:

he processes related to administrative support are outsourced which includes functions like Data Entry, Document

onversion etc.

he processes related to customer relationship management are also outsourced. This is one of the major projects that areutsourced widely all over the globe. The functions here include customer support, Customer services, taking complaints,

king orders etc.

ocesses related to Finance and accounts are also outsourced for the benefit of the company. The functions that come

nder this department are Internal Auditing, accounts management, annual budget of expenses and earnings etc. Along

ith it other finance and accounts related functions are also included under this section.

ocesses such as Training or Recruitment and other Human resources related processes are also widely outsourced to

ve time and capital of the company.

here are many more such processes which are outsourced and they bring a very good return to the Company in the formbenefits. This is the reason that Business Process Outsourcing is evolving so rapidly all over the globe.

d out What Business Process Outsourcing Deals with

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Guidance on Outsourced Processes

What is an outsourced process?

he literal meaning of the word outsource is the transfer of contract to a source outside the organization or area whose

d been originally assigned to carry on the process.

ow as per the ISO 9001:2008 standards, an outsourced process in one which is required by an organization to improve

quality of work and the work is to be carried by a third party that the organization chooses.

is to be noted that the outsourced process can be carried out by any company regardless of having any association

hatsoever with the parent organization who has outsourced the project. The project may be carried on in the main

rent organization or also be done independently by anyone, in any independent site.

ypes of outsourced processes

n outsourced process can be of various types depending upon the type of process outsourced.

ome of them are:

Software process outsourcing: As the name suggest this type of outsourcing is done in connection with the

velopment of any software. Generally large companies send their outsourced process to smaller companies based in

veloping economies like India and China having labor cost much less than their American and European counterparts.

hey further help in improving the quality of the software due to their strong technical base and high end professionalism.

he projects are broken down into small modules and then they are outsourced to specifically chosen companies, which

e parent companies think are the bets for the project.he advantage of this process is it brings about quality optimization since most of the work is outsourced to the

mpanies best in that field, and they ultimately combine the best to make a very good product. Also since the work is

vided among various companies more loads can be taken by the company, which increases the development rate.

Business process outsourcing: Sometimes it may be difficult for some companies to handle all the processes taking

ace in their organization on their own, say for instance seeing the amount of calls the customers make to a particular

m, the man power for call center and support may be a problem, hence most of their business processes are outsourced

other firms, keeping in mind the other factors like cost and quality. The outsourced process is passed on to

ganizations having very high amount of professionalism, so the quality of work is high.

Knowledge Process Outsourcing: Sometimes technical support by the company becomes extremely necessary, and itnot all possible to be carried by the parent company itself due to lack of skills and knowledge in its employees. Hence,

e work is outsourced to a company based in any region which has good Technical Capabilities and a proper knowledge

se.

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Process for Outsourcing

most every firm ,whether small or world renowned, spends a lot in terms of time, money and resources on the issues likeeryday book-keeping, counting services and keeping track of tax preparation. This leads to a little or almost no development of

ganizations core prospects.

t by choosing to outsource the book-keeping services, the business can increase its profit and earnings, improve the firms main

cus and increase their flexibility to cope up with key issues of business. Business, cpas and firm which are concerned with

counting, outsource their book-keeping services to Indian companies and find that they have virtual back-office right from

t-up, maintenance to the consultancies and support.

mong the services offered, some are:

y of transactions

rnal entries

eral entry of ledger

enses Ledger

ounts Payable

k Account Reconciliation

ncial Statements preparation

l Balance

ome Statement (Profit and Loss)

ance-sheet

sh Flow Statement

ainly outsourcing means one company contracting some other company to do certain kind of work rather than using its very own

ternal resources and effort. Thus, we can say that outsourcing means the transfer of some section of management or the so

lled day to day execution and control to some external source or firm or some other external service provider.

e three main and most prominent types of outsourcing are:

1.Development of application.

2.IT infrastructure outsourcing

3.Outsourcing of business process

BPO ->

It is a kind of outsourcing which involve the contracting the work, operations and the responsibilities of a company or unit

to some external source or to a third party.

BPOs can be differentiated into two ways according to its working. First is back office outsourcing and second is front office

outsourcing.

Back office outsourcing includes internal business elements and functions such as finance, accounting and human resource.

cess for Outsourcing

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Where as front office outsourcing involves the services related to customers such as contact center services.

IT infrastructure->

It is related to the sum of the firms IT related hardware, all of the software, all facilities for data telecommunication,

documentations and procedures. This kind o outsourcer provides with activities as network operation, data center

operation, recovery and back-up services a well as any sort of administrative services.

Application development->

Application development or software development is the kind of activity that results in software products. Development of

software may include maintenance, custom development, integration, porting and reengineering.

Other than these, outsourcing activities include the following

1.Development of software

2.Maintenance of software

3.Management services for data storage

4.Services regarding system administration.

5.End user support for the devices like pcs, laptops and device that are hand held.

6.Application hosting as well as in web site development.


Outsourcing Process

A Glance at the Outsourcing ProcessA Review of Process Outsourcing in India

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BPO Management: A Trend Acting Fund Raiser

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Process of Outsourcing

he process of outsourcing is booming with a vigorous rate all over the globe. There are numerous benefits which theyovide and that is the reason they are used widely all over the world. Some of the benefits that outsourcing companies

ovide with their work to the corporate houses are speedy work, high quality work, control in investment etc. However,

ong with all these qualities, there are plenty of risks involved in the process of Outsourcing, which one should keep in

ind while going for the Process of outsourcing.

part from all the risks, one also needs to be very much careful about other important aspects of Outsourcing. The choice

Outsourcing companies or vendors is placed at the top most important position of these aspects. Selecting a good

ndor for outsourcing the work is not very easy in the process of Outsourcing. Thus, one needs to follow certain criteria

d needs to keep certain things in mind in order to get benefited in the process of Outsourcing. They are:

One should always select a vendor who is quality committed. This means that delivering quality work should be theime focus of that vendor. In this way you can cut short the chances of your getting poor work.

The vendor should be selected after analyzing the cost properly. One should be able to save sufficient money at the end

work.

In the Process of Outsourcing, it is very important that the vendor, to whom you have outsourced your work, should

ve some extra resources which you dont have. This enhances your benefits and justifies the reason for outsourcing.

One should be very much careful while framing the contract in the process of Outsourcing. The contract should be

amed in such a way that it should offer flexibility so that the customer (the company that outsources its work) can

ange or end it whenever it is required to do so.

One should be properly aware of the security policies of the vendor in the process of Outsourcing. That will help one in

nowing how much secured the data are in the hands of vendor.

The customer should also be aware of the financial stability, methodologies, and locations etc of the vendor.

one can keep all these things in mind in the process of Outsourcing, one will surely be benefited in huge scale and the

utsourced work will also be a success for sure.


cess of Outsourcing

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Process Outsourcing

ocess Outsourcing basically refers to the act in which a third party service provider is contracted to deliver thempany with the required work. It basically includes contracting the responsibilities and operations of a particular

usiness to an outsider. In other words, when a company goes in some contracts with any organization to complete their

quired work, it is referred to as Process Outsourcing.

rocess outsourcing is the trend of present days market, but it was originally associated with a manufacturing Company

hich outsourced its supply chain all over the globe. The company was Coca Cola. However today, almost every

mpany is Outsourcing its processes or functions. This shows itself the benefits that process Outsourcing has, when it is

ed.

s far as benefits are concerned, there are plenty of benefits that make Process Outsourcing so popular amongst the

rporate houses. The process outsourcing makes the organization much more flexible and thus helps them inrengthening their position in this competitive market. Process Outsourcing, not only makes the company flexible, but

so provides the company with the opportunity of fast growth. The company can grow in a much faster way and can

ep up with the fast moving market with the help of Process Outsourcing.

part from the opportunity of fast growth to the company, Process Outsourcing also helps the company in improving the

uality of their work and thus they can withstand the tough competition. With the help of process outsourcing, the

mpanies can properly concentrate on their Competitive counterparts in the market. Concentrating properly on the

mpetitors is very much essential and required for a company to hold its position in the market. If one cannot

ncentrate properly on its competitive counterpart, very soon that organization is taken over by their competitors.

ocess Outsourcing also helps the organization in controlling and cutting their expenses. By outsourcing their work, thempany frees itself from the huge capital investment that would be required in order to hire man power as well as

achines for that particular work. Even after that huge investment, one will not get cent percent result at once. That will

me gradually with time. In this era of fast moving market, very soon the appliances get outdated and hence a new

vestment of capital will be required. But by Process outsourcing, the company just needs to pay the service provider as

r the work, thus saving a huge capital.

herefore Process Outsourcing has plenty of benefits as mentioned above and due to these benefits it is gradually

coming the trend of the market.


cess Outsourcing

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Process Outsourcing Solutions: How to Benefit from It

eviously the term outsourcing was associated with manufacturing firms but now it primarily refers to the outsourcingservices. Business process outsourcing involves the handing over the responsibilities and operations to a third party

rvice provider.

o the process outsourcing solutions can be divided into two categories- back office outsourcing and front office

utsourcing. Back office outsourcing deals with internal business processes like human resource or accounting and

nance. On the other hand front office outsourcing deals with the services which are more customer-related such as

ntact center services.

hen a BPO is contracted outside the companys country it is known as offshore outsourcing. When it is given to a

ighboring country it is known as near-shore outsourcing.

ocess outsourcing solutions also include Knowledge Process Outsourcing and Legal Process Outsourcing; apart frome general IT related BPO. It is also known as information technology enabled service (ITES).

he market of BPO industry is growing at a tremendous pace. India has about 5-6% share of the entire BPO industry but

impressive 63% of the offshore part of the industry is also under the IT giant. Other countries include Morocco, Egypt,

hilippines, and South Africa. China is also one nation which is growing at a great speed starting from a small base.

ow we come to the benefits and limitations of process outsourcing solutions- how effective it is. The first important

dvantage of a BPO is that it helps to increase the flexibility of the company in different ways. Almost all the service

oviders work on the principle of fee-for-service. This is helpful to the company as it makes it more flexible as the fixed

sts into variable ones. This variable cost enables the company to respond to changes in the capacity required and the

mpany need not invest money in assets.

nother way in which the company becomes more flexible by opting for process outsourcing solutions is that it can focus

n the main competencies. Thus the burden of meeting the practical restraints is lessened. The main employees can

erefore focus more on the companys core businesses.

PO increases the flexibility also by increasing the speed of business functions.

he above mentioned examples are always there but there are some constraints which a company should be aware of.

he problems which can arise are that service levels are not met, the contractual issues are not clear. Also much

pendence on BPO can reduce flexibility.


cess Outsourcing Solutions: How to Benefit from It

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Pros and Cons of Process of Outsourcing

rocess of Outsourcing is an act of outsourcing the business processes or functions to a third party service provider. Theird party service provider completes the given function or process under the given payment from the main company as

r the contract between them. Thus, outsourcing is simply an act of shifting the essential operations of the company to

e service providers for various benefits of the company. This essential operation does not comprise the core functions of

e company.

he processes which are outsourced may not be core, but are very essential for the smooth functioning of the company.

hough the outsourcing Processes are not core processes, yet they are outsourced because there are various benefits of

ocess of Outsourcing. Process of Outsourcing is very much advantageous for the companies that practice it. The

ocess of Outsourcing helps in improving the quality of the work. By giving the work to the third party service provider,

e work and its quality gets enhanced. This is because of the fact that the third party service provider takes the work that

ey think themselves to be better in. thus, their skill and experience of that particular sphere benefits the company.

part from quality, by Process of Outsourcing, a company also cuts down its expenses. The company no more requires

aking huge investment of the capital on the man power and appliances. They simply can provide the third Party Vendor

ith the money as per the quality of the work they get back in return. Thus, they get free from the monthly expenses of

e man power and time to time investment on the appliances which get outdated gradually with time.

owever, Process of Outsourcing Comprises of many drawbacks also along with the above mentioned benefits. The first

sadvantageous factor is the risk that is involved in the Process Outsourcing. Other factor is the lack in security of the

ocess that is outsourced. The project when is outsourced shares the confidential and secured information of it with the

ird party organization also, thus decreasing the level of security.

herefore Process of Outsourcing has both advantageous as well as disadvantages. They can benefit to the company in a

eat deal, but at the same time, the risk involved with it cannot be underestimated. However, if one minimizes the risk

ctors by managing them properly, one can have maximum outcome through Process of Outsourcing.


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Services offered by business process outsourcing

usiness process outsourcing (BPO) involves the assortment of operations and responsibilities of particular businessnction to a third party service provider. Basically BPO can be classified into back office outsourcing and front office

utsourcing. The former comprises of the accounting and some function of internal business as finance or man power,

hile the latter deals with services associated to customers such as contact services. Near shore outsourcing is restricted

the country, while offshore outsourcing is related to the matter associated with the overseas countries.BPO dealing with

industries are labeled as the ITES (Information Technology Enabled Services). Some other segments are Knowledge

ocess Outsourcing (KPO) and Legal Process Outsourcing (LPO).

he BPO industries are growing exponentially. Revenue of 10.9 billion USD is earned by India from offshore BPO,

hereas 30 billion USD is earned by total BPO. India has occupied some 5-6% of the worlds total BPO industries. Even

hina who is a newcomer in this arena is also showing a remarkable progress. This clearly shows the impact of BPO

dustries on the world economy. The major sectors which are served by the BPO are retail banking (35-40%), insurance5-35%), travel/hospitality (10-12%), auto (8-10%), others (10-15%).

o increase the flexibility of the company is the one of the most prominent services offered by the business process

utsourcing industries. Moreover there are few other ways by the several sources can boost up the flexibility of an

ganization.

he BPO vendors provide most of their services on a fee-for-service basis. By this the company becomes more flexible

y transforming its fixed costs into variable costs. The structure of variable cost is more elastic and helps the company to

spond to the change in a predetermined capital as well as it also helps the company to not to invest in assets. Thus make

e company more flexible. It also provides an option of increased elasticity in companys resource management. The

sponse time to the major environmental changes is also subjected to reduce.

lso BPO increase companys flexibility by focusing on its main competencies by avoiding the load of the demands of

ureaucratic restraints. The main employees are free from the headache of these organizational processes and can work

ore efficiently in the building the companys core businesses. By focusing more on the issues like customer relationship,

oduct management, or operational brilliance a company can create a competitive boundary.

scalating the pace of commerce of a company is also the main procedure to increase the firms flexibility. Business

anagement with the sufficient use of the available partners and BPO will pace up the velocity of several business

ocesses.


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The Basics of Business Processes Outsourcing

What is outsourcing?

order to run the business efficiently and to generate more profits the process of outsourcing is followed. Outsourcing

als with the process of transfer of work or service to a third party, who carries out the job of the parent company for

y. This process is advantageous since every successful business deals with generation of ample profits and the reduction

costs. Since outsourcing is generally done in developing economies like India and China where labor is cheap and

uality of service is high, the result is high quality work and service.

What is Business Process Outsourcing?

usiness Process Outsourcing is a form of outsourcing in which the Business process of an organization ranging from

eping the accounts of the parent company to attending their customers in call centers, all are a part of a Businessocess Outsourcing. This reduces the operating cost of the parent company, since the people working for the company

long to a nation where the labor cost is cheap and the same work is done in a much lesser cost and also high quality of

rvice is obtained since people for these countries do not mind working overtime or working in night shifts, for some

tra pay, while their American and British counterparts in which the parent companies are situated lack professionalism

d also charge high, also they do not prefer working late hours or doing some overtime.

ypes of Business Processes Outsourcing

usiness Process Outsourcing is of two types

Inshore outsourcing or Local OutsourcingOffshore outsourcing or Global Outsourcing

shore outsourcing is the process of outsourcing carried out in the geographical or political region in which the parent

mpany is situated. For example a company situated in New York outsourcing its work to Mexico

ffshore outsourcing is the process of outsourcing carried out on a different geographical or political location in which

e parent company is situated. For example a company situated in the US transferring its work and service to a company

sed in India.

enerally the later i.e. offshore business process outsourcing is carried out since the economic and work environment

oesnt differ much in a particular geographic location, and the inshore outsourcing process doesnt bear any fruit.

dvantages of outsourcing

he following are the advantages of Business processes outsourcing:

Reduction in Operating Costs: Operating costs is reduced since the process is transferred to a country where labor costs

e low.

Improvement of Quality: The quality of service is improved since professionalism is present in the employees at these

cations.

Increase of the volume and pace of work: Since the work is transferred to various companies the pace of work

creases.

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Understanding Business Outsourcing Process

usiness outsourcing process is the process of transferring business activities from the parent company to any third partyorder to meet the organizational objectives.

PO is different from software or IT outsourcing in which the work is totally transferred to a third party, it deals with

rious other activities, such as data center operations, or testing and quality assurance.

PO in its early days dealt only with processes like payroll and accounts, but nowadays the system has taken over almost

l the business processes ranging from financial and administration (F&A) processes, human resources (HR) functions,

ll center and customer service activities and accounting and payroll.

he outsourcing processes nowadays are complicated and the profit generated by a single contract can run up to millions

dollars. Its a highly promising field and high amount of growth opportunities since the people working for the company

rrying on the process of the parent company sometimes join the parent company itself. This form of outsourcing isrried out by many leading companies nowadays, ranging from global leaders like Accenture, IBM, and Hewitt

ssociates, and many other companies like TCS, IBM, Wipro, and Infosys.

ost of the Business outsourcing process is carried out through off shoring, since it provides an additional advantage, of

duced costs and improvement of quality. If a process is outsourced away from the country the parent company is based

, the operating cost is reduced, since the chosen destinations are places like India and China, which are the worlds

rgest developing economies. The labor costs at these destinations are less and the quality of the service is high since the

rofessionals in these places are highly competent and are highly skilled, also they are highly professional in their

proach so the quality automatically becomes good.

he other forms of BPO are ITES (information technology-enabled services) and the KPO i.e. Knowledge Processutsourcing. KPO is similar to BPO in operation but somewhat different in content since it requires proper technical

ills and good knowledge base in order to carry out the process. For example, for an IT firm, the support for its products

ch as software is provided by skilled and knowledgeable personnel. The destination for KPO is generally India and

hina, the former is the preferable destination due to the high English Language skills, and good Technical skills. A

eculation exists that if China learns English then it will overtake India in this business, due to its highly cheap labor and

ood technical skills.


erstanding Business Outsourcing Process

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Why Should One Go for Outsource Process?

he market today is moving with a pace that is hard to maintain for any company. With so much of competition allound, the companies need some way to cope up with the present days market, and Outsource Process is one of those

ays.

utsourcing is basically referred to as the act in which a company transfers its function or operation to a third party

rvice provider and the process which are outsourced, called Outsourced Process. Thus, an outsource Process gains

umerous benefits in the act of outsourcing. This is one of the reasons that corporate houses all over the globe are opting

r outsource process.

s mentioned above an Outsourced Process has many benefits because of which Corporate houses are either already

pting or should be opting for outsourcing. An Outsource process is better in many perspectives. First factor which puts it

ove is that it has a better quality. It does not stand that the processes that are not outsourced lack quality, but thoseocesses which are outsourced do certainly have a better quality. This is because the third party service providers whom

e work is provided for are actually skilled and experienced in that form of work and hence these factors enhance the

uality of the process.

nother advantage ofOutsource Process is that it helps the companies in maintaining their expenses. With the help of

utsource Process, the companies can control their capital investment on the man power as well as the appliances. The

penditure on Man power and appliances, both require time to time investment and by saving that, the companies can

ve a lot of money. Thus, going for outsource Process Can be extremely beneficial for the company from the monitory

ont.

oing for Outsource Process also helps the corporate houses in saving their time. With the help of Outsource Process, thempany can concentrate on another process and at the same time, the outsourced process will be worked upon by the

ird party vendor. That means the company can work on two processes simultaneously, thus enhancing the pace of the

mpany and it is known to all of us how important pace is in work in the present market.

would be wrong to state that Outsourcing only posses advantages and has no drawbacks. An Outsourced Process also

volves a lot of risk with itself, but these risks are manageable and very less in comparisons to the benefits that it has for

e companies practicing it.


y Should One Go for Outsource Process?

Documents

A Glance at the Outsourcing Process