Why BPO?
“The transfer of management and execution of an entire business process to an external service provider, including technology, people, and process. In engaging BPO services, clients are buying access to executed business processes and business outcomes from their BPO providers” (IDC)
“The delegation of one or more IT-intensive business processes to an external provider that owns, administrates and manages the selected processes that are based on defined and measurable performance metrics” (Gartner)
Industry Backdrop for Exploring Sourcing
Today’s globally competitive business environment is forcing organizations to take a harder look at their business functions in order to compete effectively. As a result, senior executives look at their business functions with an eye.
- Achieving business objectives faster
- Reducing unit costs
- Improving customer service/process effectiveness and quality
- Overcoming internal impediments to change or growth
- Avoiding capital costs associated with systems renewal
- Turning fixed costs into variable costs
- Improving organizational agility
- Accessing innovations and know-how, all of which tie back to the organization’s goals of meeting customer needs and improving shareholder value
Back Office functions such as IT, Finance and Accounting, Customer Care, transaction processing and other similar functions in particular have posed more specific challenges that executives have to overcome.
- Reduce costs
- Unify disparate processes spread across different departments, functions and locations
- Ensure structured decision making criteria at process step level
- Develop and deploy standardized processes, and associated procedures to sanction exceptions
- Design dynamic processes to meet dynamic operating conditions
