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4. GROWTH IN BPO

In rapidly changing competitive business environment, organizations keep a sharp focus on their cost structure while looking for effective ways to access cutting-edge technology and process innovations without huge capital outlays. These organizations are turning to Business Process Outsourcing (BPO) to accomplish these objectives.
BPO is the long-term contracting out of business processes to an outside service provider so that organization can focus on key strategic initiatives, reduce overall cost structure and improve quality and service level.

In prior years, BPO was reserved for back-office applications such as accounts payable, call and service centers, and Human Resources. More recently, however, organizations are looking at BPO to provide value in other functions such as sourcing. The single greatest driver influencing the penetration of BPO is Internet that has enabled companies to transform their processes. Many of these efficiencies have been driven by the need for total cost and cycle time reductions and limitation on capital investments. Further organizations have realized that they cannot optimize every facet of their business simultaneously. This realization has helped.

BPO has gained strategic importance as companies have looked at BPO for key areas such as sourcing. The decision to use BPO should be a long-term solution, strategic and thoroughly analyzed.

5. OBJECTIVES OF OUTSOURCING

Partnering For Competitive Advantage

The Multi-P's of the Value Proposition