Business process outsourcing

Business Process OutsourcingSpecial report

Entrepreneurship

Prepared by:

MARK LESTER SALVADOR

Business Process Outsourcing Defined History of BPO BPO Trends Benefits of BPO Disadvantages of BPO Reasons for Outsourcing BPO Models Outsourced Processes

Business Process Outsourcing

This is when a company contracts an outside provider for services or business processes. This might include manufacturing or back-office functions such as accounting and human resources

Business Process Outsourcing

WWII - Increased international trade

1960s – 1980s - Importing turns to outsourcing

1990s – Present- Services now outsourced

- BPO begins

History of BPO

BPO trends

BPO Trends

Short term contracts

In-sourcing

Outsourcing in emerging and developing markets

Process and Best of breed outsourcing

Outsourcing centers of excellence

Benefits of BPO

Benefits of BPO

Cost Reduction

Focus on core areas

Avoid capital expenditures

Assurance of best practices, skills, and technology

Revenue Increase

Disadvantages of BPO

Disadvantages of BPO

Risk of exposing confidential data

Synchronizing the deliverables

Hidden Costs

Lack of customer focus

Business Challenges

Globalization

• Lower cost competitors

• Focus on core competencies

Technology

• Rapid advances in technology and information

• Sharp decline in telecommunication cost

Economic downturn

• Stagnating top lines

• Bottom line pressures

• Economies of scale

Reasons for Outsourcing

Reasons for Outsourcing

Cost Advantages

Innovation and speed to market

Increased customer satisfaction

Economies of Scale

Skill level, Quality of Service

BPO Business Models

•Handles one aspect of process only

•Customer owns risk of process

Transactional BPO

•3-4 aspects of a process

•Vendor and buyer share risk of process

Niche BPO

•Handles both transactional and administrative task

•Takes 70% responsibility of the output

Comprehensive BPO

Outsourced Processes

BPOFinance Information Technology

Human Resource

DistributionWarehouse

Order Processing

Top BPO in the Philippines

THANK YOU!

http://www.outsourcemagazine.co.uk/articles/item/3417-business-process-outsourcing-trends

http://www.callcenterphilippines.net/ http://workathomemoms.about.com/od/telecommuting/g/

BPO.htm http://www.indobase.com/bpo/bpo-benefits/index.html http://www.tutorial-reports.com/business/outsourcing/bpo

/models.php

Sources