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2.2 Four Different BPO Models

2.2.1 Traditional Data Processing Outsourcing

Companies outsourced tasks to cut the growing costs associated with in-house systems. The main goals are to lower costs and hand off support of functions that were outside of a company's core competency. The benefits are cost savings, access to best practices, and a superior management focus on key issues. With the traditional outsourcing relationship, companies expect the same consistent level of service, as they are currently experiencing. The examples of traditional data processing outsourcing include First Data (transaction processing), Fiserv (consumer banking), and Sabre (travel reservations).

2.2.2 Information Technology Enabled Outsourcing

Within the last few years, outsourcing has evolved from a tactical, cost-cutting maneuver for offloading routine tasks and acquiring temporary manpower to a strategic element. BPO is now an important theme in IT services, and is now responsible for significant revenue growth for many vendors. IT-enabled BPO changes have come in waves that slowly gather shape, gaining energy and momentum. These waves relevant to the outsourcing industry over the past three decades include: -