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2.2.3 Collaborative Task Outsourcing (Shared Services & Co-Sourcing)

The main goals are to respond to competitive pressure by enhancing non-core processes and reduce expenses. The benefits are significant cost savings, improved services, access to competitive skills, and improved management focus on key issues. With the collaborative outsourcing model, companies can expect a higher level of service because business processes are not simply sent outside the company and supported but were re-engineered and better integrated. In large corporations, BPO as a concept is not new - it has been a popular management tool in areas like payroll for decades. Organizations have long outsourced such functions as building security, cafeteria services and staffing. But now core activities like finance and accounting are getting outsourced as companies race to reduce their cost structure to stay competitive.

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* Contributed by: -
Priyanka Ghosh & Alvika Derhgawen,
PGDIM, IM-11,
NITIE, Mumbai.