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Business Process Outsourcing: A Strategic Decision for Businesses Today
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Posted On :
Sep-23-2011
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Article Word Count :
541
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There are several factors to be kept in the mind while selecting third party vendors for business process outsourcing.
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Business process outsourcing means letting out a particular part of the business in which the company doesn’t have a core competency to other third part vendors or firms with whom the original company has entered an agreement with. This is a strategic decision to make in today’s cut-throat business environment where competition is increasing day by day and cost of the service needs to be lowered as much as possible to achieve competitiveness. However, outsourcing any part of the business process by the Company may lead to loss of control over such process and hence pros and cons of business process outsourcing have to be duly considered before making any decision.
Total Business Process Outsourcing v/s Selective Business Process Outsourcing?
Business process outsourcing can be of two types- selective outsourcing or total outsourcing. In selective business process outsourcing, only a select functions of an organization which the organization feels that can be more efficiently be carried out by a third party vendor are outsourced to it. However, in total business process outsourcing, entire departments of a company may be made redundant if the company feels that it ought to focus on its core competency rather than work in diversified fields.
Selecting a Business Process Outsourcing Vendor
There are several factors to be kept in the mind while selecting third party vendors for business process outsourcing. Some of the important factors are experience of that particular vendor in providing that service to its clients, the infrastructure that the vendor possesses for carrying out such outsourcing functions, the human resource possessed by the vendor and basic facilities like software and equipment is possessed by the vendor.
Business Process Outsourcing to India
India has become one of the prominent countries where business process outsourcing industry has thrived.It is so because of the availability of large pool of English speaking graduates, cheap workforce, willingness to work in shifts and the availability of quality manpower. India is today known as the “back office of the world”. However, critics have pointed out that this industry is just like any other sweatshop where “cyber coolies” sweat it out during the night. However, one shouldn’t overlook the fact that the business process outsourcing industry has given financial freedom to the Indian youth where a salary close to $300 is considered princely. Also, now business process outsourcing does not only involve processes like credit card support or medical transcriptions, it also involves outsourcing of various intricate works like civil engineering drawings, designing and detailing of architectural drawings, animation and software processes, etc. which are increasingly technical in nature and require niche skills. This type of business process outsourcing is more commonly known as knowledge process outsourcing.
Business process outsourcing has become a necessity in this global world. As each and every country is being integrated into one whole global economy, its imperative that the talent pools of not only one particular region be utilized, but the search for quality talent and cost effectiveness may lead to business process outsourcing to go beyond the borders of one’s country and to diversified places. Business process outsourcing has become the foundation on which the edifice of the integrated global economy would eventually stand.
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Article Source :
http://www.articleseen.com/Article_Business Process Outsourcing: A Strategic Decision for Businesses Today_85121.aspx
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Author Resource :
Accelcia business process outsourcing provides finance and accounting outsourcing, financial accounting services, human resource business process outsourcing, human resource outsourcing, recruitment process outsourcing.
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Keywords :
business process outsourcing, business process outsourcing services,
Category :
Business
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Small Business
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