A Glance at the Outsourcing Process

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A Glance at the Outsourcing Process

An Outsourcing Process is a Process in which the different functions as well as works of the company are sent or given to a service provider to complete. This service provider is often a third party service provider, which means it does not belong to the segment of consumer and not even to the side of manufacturer. In other words, it is the transfer of some essential operations of the company to the third party service provider for the completion of those works and to gain various benefits over that work. An Outsourcing process is gaining huge popularity all over the globe and it is because of the fact that an outsourced process has numerous benefits. The benefits include high quality in the work, investment maintenance, speedy work etc. All these benefits are what corporate houses require in present market to stand tough competition around them. With the above mentioned benefits, the company can enhance its pace in work to cope up with the fast moving market and at the same time would not be compromising with the quality of the work. Outsourcing process acquires a huge percentage today in the market. Almost every company is going for Outsourcing. The huge business of the outsourcing market is the proof of the wide popularity of Outsourcing. Outsourcing Process is becoming a part of the business strategies of the corporate houses. Even the outsourcing Process is now divided into various levels. When a part of the work is outsourced as a project, it comes under the project level of the outsourcing Process. When few projects are outsourced in a program, it comes under the program level of the outsourcing Process. Lastly, when the operation of a full division is outsourced, it comes under the Division Level of the Outsourcing Process. The level of Outsourcing Process often depends on few factors like cost efficiency, Faith in Vendor, work quality of the vendor etc. These factors helps the companies to decide, whether they want to outsource a Project, or a Program or a full division to the vendor. Many a times, the company starts with a small project but after analyzing the work of the vendor, it goes on increasing the outsourced work. Thus, the days when it was said that the unimportant work are outsourced are over. Today, the work which are outsourcing Process may not be including a core process, but surely contains some important and essential functions.

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11/07/2011 10:09

BPO Management: A Trend Acting Fund Raiser

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BPO Management: A Trend Acting Fund Raiser

The Business Process Outsourcing Management is a new eye candy that has been recently introduced in the IT Sector. This aspect of outsourcing is not a typical one but has a new turn of management in it. The companies that follow this trend have various aspects to look out for. The primary definition of BPO Management can be referred to as the complete authentic management of the BPO related companies as well as its various outsourcing projects, which in most of the cases is the complete outsourcing of various kinds. The Business Process Outsourcing Management is classified into two criteria, one of them is back office BPO that involve various aspects of the internal functions like finance, human resources, accounting and such others. The other is Front Office BPO that mainly relates to various services connected to customers. When any aspects of the BPO management are not fulfilled, then the actual objective with which the criterion was observed is not met. The common mistake that people make is mixing the definition of on shore and off shore outsourcing and thus acting accordingly. Thus the various aspects of the Business Process Outsourcing Management are not met properly in such case. One needs to completely clear there definition of various kinds of outsourcing and then take actions that best suits the situation. The BPO management has recently attained an enormous stature of activity with India alone generating 11 billion US dollars in revenues department through offshore activities achieved within various countries. Though there are various benefits to look out apart from the generation of the liquid cash, within any economy, it also leads to increase in flexibility within an economy. The prime example of this is the IT sector of India itself. Also the Business Process Outsourcing Management has created new opportunities for the growth of smaller business and growth of higher level business at an even higher ground. The main objective to look at when considering BPO management is that there is a higher option for better work flow including better focus on the internal activities of one company. Thus in a way this leads to the increment in the contingency within the core of the company activities. Though there are always various aspects to look at before undertaking the right kind of Business Process Outsourcing Management, still it all narrows down to the kind of outsourcing strategy that one creates and the related search for completion of such objectives in order to generate enormous profits.

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11/07/2011 10:11

Business Process Outsourcing Business

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Business Process Outsourcing Business

What is Business Process Outsourcing? Outsourcing in general is referred to as the process of transfer of contract from a company to another sub-company which takes care of the parent companys some part of business. Business Process Outsourcing is a specific type of outsourcing in which a particular business process or many of them are transferred to an outsourcee. The business process includes accounting, call centre operations, billing, technical support etc. Types of Business process outsourcing business Basically a business process outsourcing business can be categorized into two types: 1. Local Outsourcing: This type of outsourcing as the name suggest is done between companies located in the same geographical region, country, state etc. It can be used to reduce the workload of the parent company but as far as the financial benefits are concerned this type of outsourcing is not preferred and is generally avoided. 2. Global Outsourcing or Overseas Outsourcing: This type of outsourcing is the more preferable one and is defines as the transfer of contract between companies which are located in different geographical areas and destinations. This type of process outsourcing business is preferred since along with the release of workload it also fosters some economical advantage, since the destinations chosen for outsourcing are generally places which are economically developing like India and China, in these places the labor cost is low, and the quality of service is high, India has a greater advantage over China in addition to excellent Technical skill they are blessed with good English Language skills which gives India an extra edge. Why is Business process outsourcing business beneficial? Business process outsourcing business is beneficial in the following ways: 1. Reduction of Workload: It is due to Business Process Outsourcing that companies nowadays can take high workload and attempt enterprises which were beyond their reach before. In this way the pace of development increases and high employment is generated, thereby fostering global economic development. 2. Reduction of Development cost: Since the work is outsourced to economically developing countries like India and China, the cost of operations is low, and the quality of service is high. 3. Increase and Optimization of Quality of Service: Since the parent company chooses the outsourcee by taking in consideration their requirements, by properly managing their requirements and the things they outsourced a high quality product or service can be achieved. This is just like turning the whole world into a Global Village and using the best resources available. Also the places where the services are outsourced constitute individuals having highly competent and professional attitude and they provide the best service the parent company require. Unlike the employees of the parent company the employees of the outsourcee do not mind working late hours or overtime in order to meet the clients requirement. So, this ultimately increases the quality of service.

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11/07/2011 10:12

Business Process Outsourcing Process Management

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Business Process Outsourcing Process Management

Business Process Outsourcing or BPO is the transfer of any business process of a particular company i.e. the outsourcer to a third party i.e. the outsourcee. The processes include Accounting, Procurement, Human Resources, Asset or property management. The whole process is supported by IT processes, which forms the key interface in the Business Process Outsourcing industry and without Information Technology tools Business Process Outsourcing would not have been possible. Since most of the companies nowadays are going for IT Process outsourcing, the amount of commodity in the market has increased, which has caused inflation in the market. So, nowadays most of the companies prefer Business Process Outsourcing in order to meet their Business and Technological needs. Also the whole process of outsourcing helps in the reducing costs, in the improvement of industry quality and also generates high amount of labor in the market globally. Business Process Outsourcing is also useful since the outsourcer is free to choose any outsourcee based on their requirements and the skill of the outsourcee. This fosters in improving the quality of service and in the release of workload of the company, besides reduction in the operating cost it also helps the company to take more work and it speeds up the different processes of the company. For any company, BPO helps in the expansion of its services, and to offer prices which are good enough in this competitive market. Types of BPO BPO generally falls under the following nine categories: 1. Administration 2. Call Center 3. Accounting 4. Procurement / Logistics 5. Claims processing 6. Data Management 7. Human Resources Management 8. Miscellaneous Services 9. Finance The categories mentioned above are generally made and the outsourcer is free to decide on whether it falls under these categories or not, often the categories are customized according to the needs of the organization. Mechanism of Business Process Outsourcing Management Business Process Outsourcing Management takes the help of IT as a tool, without IT it would not have been possible for the BPO industry to grow so big. The general mechanism for any BPO operation is Remote Connectivity. Using various software technologies like Telnet and FTP, along with tools like remote desktop connectivity, a company based in India can work on a US business process by just logging on to the machine of the outsourcer, handle all its work and the processes and then log off when the job is complete, without having to make any postal arrangements, it has become so simple that calls made by clients of the outsourcer can easily be attended by the employees of the outsourcee using this feature, had there not been tools like this then overseas outsourcing would not have been possible since calls would then had to be diverted to the country where the outsourcee is based costing the outsourcer a lot of cash.

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11/07/2011 10:12

Find out What Business Process Outsourcing Deals with

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Find out What Business Process Outsourcing Deals with

Business Process Outsourcing is one of the fastest growing as well as rapidly covering business trends of the present days market. Companies are going for Business Outsourcing at their utmost level. This is because of the fact that outsourcing processes have a lot of benefits for the business of the company that practices it. Before discussing about the Business Process Outsourcing in detail, we should properly understand what Outsourcing is all about. When a company offers some of its essential processes or work to a third party, who is definitely not the consumer and in return pays that third part service provider for the completion of that work in behalf of that company then it is called Outsourcing. Basically the processes that are outsourced are not the core processes, but are equally important for the smooth and proper functioning of the company. As mentioned above that Business Process Outsourcing does not deal with any of the core processes of the companies, the reason behind it is the risk and the threats of the Process outsourcing. There are advantages of Business outsourcing, but at the same time there are various risks that are involved in process outsourcing. One of the major risks that are involved with it is the lack of Security. It is not like that the processes do not have any security at all, but there are possible threats of security from the privacy perspective. This arises many questions about the processes that Business Process Outsourcing deals with. Some of the processes that are outsourced to the BPOs to deal with are as follows: The processes related to administrative support are outsourced which includes functions like Data Entry, Document Conversion etc. The processes related to customer relationship management are also outsourced. This is one of the major projects that are outsourced widely all over the globe. The functions here include customer support, Customer services, taking complaints, taking orders etc. Processes related to Finance and accounts are also outsourced for the benefit of the company. The functions that come under this department are Internal Auditing, accounts management, annual budget of expenses and earnings etc. Along with it other finance and accounts related functions are also included under this section. Processes such as Training or Recruitment and other Human resources related processes are also widely outsourced to save time and capital of the company. There are many more such processes which are outsourced and they bring a very good return to the Company in the form of benefits. This is the reason that Business Process Outsourcing is evolving so rapidly all over the globe.

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11/07/2011 10:14

Guidance on Outsourced Processes

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Guidance on Outsourced Processes

What is an outsourced process? The literal meaning of the word outsource is the transfer of contract to a source outside the organization or area whose had been originally assigned to carry on the process. Now as per the ISO 9001:2008 standards, an outsourced process in one which is required by an organization to improve its quality of work and the work is to be carried by a third party that the organization chooses. It is to be noted that the outsourced process can be carried out by any company regardless of having any association whatsoever with the parent organization who has outsourced the project. The project may be carried on in the main parent organization or also be done independently by anyone, in any independent site. Types of outsourced processes An outsourced process can be of various types depending upon the type of process outsourced. Some of them are: 1. Software process outsourcing: As the name suggest this type of outsourcing is done in connection with the development of any software. Generally large companies send their outsourced process to smaller companies based in developing economies like India and China having labor cost much less than their American and European counterparts. They further help in improving the quality of the software due to their strong technical base and high end professionalism. The projects are broken down into small modules and then they are outsourced to specifically chosen companies, which the parent companies think are the bets for the project. The advantage of this process is it brings about quality optimization since most of the work is outsourced to the companies best in that field, and they ultimately combine the best to make a very good product. Also since the work is divided among various companies more loads can be taken by the company, which increases the development rate. 2. Business process outsourcing: Sometimes it may be difficult for some companies to handle all the processes taking place in their organization on their own, say for instance seeing the amount of calls the customers make to a particular firm, the man power for call center and support may be a problem, hence most of their business processes are outsourced to other firms, keeping in mind the other factors like cost and quality. The outsourced process is passed on to organizations having very high amount of professionalism, so the quality of work is high. 3. Knowledge Process Outsourcing: Sometimes technical support by the company becomes extremely necessary, and it is not all possible to be carried by the parent company itself due to lack of skills and knowledge in its employees. Hence, the work is outsourced to a company based in any region which has good Technical Capabilities and a proper knowledge base.

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11/07/2011 10:15

Process for Outsourcing

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Process for Outsourcing

Almost every firm ,whether small or world renowned, spends a lot in terms of time, money and resources on the issues like everyday book-keeping, counting services and keeping track of tax preparation. This leads to a little or almost no development of organizations core prospects. But by choosing to outsource the book-keeping services, the business can increase its profit and earnings, improve the firms main focus and increase their flexibility to cope up with key issues of business. Business, cpas and firm which are concerned with accounting, outsource their book-keeping services to Indian companies and find that they have virtual back-office right from set-up, maintenance to the consultancies and support. Among the services offered, some are:

Entry of transactions

Journal entries

General entry of ledger

Expenses Ledger

Accounts Payable

Bank Account Reconciliation

Financial Statements preparation

Trial Balance

IIncome Statement (Profit and Loss)

. Balance-sheet

. Cash Flow Statement Mainly outsourcing means one company contracting some other company to do certain kind of work rather than using its very own internal resources and effort. Thus, we can say that outsourcing means the transfer of some section of management or the so called day to day execution and control to some external source or firm or some other external service provider. The three main and most prominent types of outsourcing are: 1. Development of application. 2. IT infrastructure outsourcing 3. Outsourcing of business process BPO -> It is a kind of outsourcing which involve the contracting the work, operations and the responsibilities of a company or unit to some external source or to a third party. BPOs can be differentiated into two ways according to its working. First is back office outsourcing and second is front office outsourcing. Back office outsourcing includes internal business elements and functions such as finance, accounting and human resource.

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11/07/2011 10:18

Process for Outsourcing Where as front office outsourcing involves the services related to customers such as contact center services. IT infrastructure-> It is related to the sum of the firms IT related hardware, all of the software, all facilities for data telecommunication, documentations and procedures. This kind o outsourcer provides with activities as network operation, data center operation, recovery and back-up services a well as any sort of administrative services. Application development-> Application development or software development is the kind of activity that results in software products. Development of software may include maintenance, custom development, integration, porting and reengineering. Other than these, outsourcing activities include the following 1. Development of software 2. Maintenance of software 3. Management services for data storage 4. Services regarding system administration. 5. End user support for the devices like pcs, laptops and device that are hand held. 6. Application hosting as well as in web site development.

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Outsourcing Process
A Glance at the Outsourcing Process A Review of Process Outsourcing in India About BPO Management: A Trend Acting Fund Raiser

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11/07/2011 10:18

Process of Outsourcing

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Process of Outsourcing
The process of outsourcing is booming with a vigorous rate all over the globe. There are numerous benefits which they provide and that is the reason they are used widely all over the world. Some of the benefits that outsourcing companies provide with their work to the corporate houses are speedy work, high quality work, control in investment etc. However, along with all these qualities, there are plenty of risks involved in the process of Outsourcing, which one should keep in mind while going for the Process of outsourcing. Apart from all the risks, one also needs to be very much careful about other important aspects of Outsourcing. The choice of Outsourcing companies or vendors is placed at the top most important position of these aspects. Selecting a good vendor for outsourcing the work is not very easy in the process of Outsourcing. Thus, one needs to follow certain criteria and needs to keep certain things in mind in order to get benefited in the process of Outsourcing. They are: 1. One should always select a vendor who is quality committed. This means that delivering quality work should be the prime focus of that vendor. In this way you can cut short the chances of your getting poor work. 2. The vendor should be selected after analyzing the cost properly. One should be able to save sufficient money at the end of work. 3. In the Process of Outsourcing, it is very important that the vendor, to whom you have outsourced your work, should have some extra resources which you dont have. This enhances your benefits and justifies the reason for outsourcing. 4. One should be very much careful while framing the contract in the process of Outsourcing. The contract should be framed in such a way that it should offer flexibility so that the customer (the company that outsources its work) can change or end it whenever it is required to do so. 5. One should be properly aware of the security policies of the vendor in the process of Outsourcing. That will help one in knowing how much secured the data are in the hands of vendor. 6. The customer should also be aware of the financial stability, methodologies, and locations etc of the vendor. If one can keep all these things in mind in the process of Outsourcing, one will surely be benefited in huge scale and the outsourced work will also be a success for sure.

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11/07/2011 10:18

Process Outsourcing

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Process Outsourcing
Process Outsourcing basically refers to the act in which a third party service provider is contracted to deliver the company with the required work. It basically includes contracting the responsibilities and operations of a particular business to an outsider. In other words, when a company goes in some contracts with any organization to complete their required work, it is referred to as Process Outsourcing. Process outsourcing is the trend of present days market, but it was originally associated with a manufacturing Company which outsourced its supply chain all over the globe. The company was Coca Cola. However today, almost every company is Outsourcing its processes or functions. This shows itself the benefits that process Outsourcing has, when it is used. As far as benefits are concerned, there are plenty of benefits that make Process Outsourcing so popular amongst the corporate houses. The process outsourcing makes the organization much more flexible and thus helps them in strengthening their position in this competitive market. Process Outsourcing, not only makes the company flexible, but also provides the company with the opportunity of fast growth. The company can grow in a much faster way and can keep up with the fast moving market with the help of Process Outsourcing. Apart from the opportunity of fast growth to the company, Process Outsourcing also helps the company in improving the quality of their work and thus they can withstand the tough competition. With the help of process outsourcing, the companies can properly concentrate on their Competitive counterparts in the market. Concentrating properly on the competitors is very much essential and required for a company to hold its position in the market. If one cannot concentrate properly on its competitive counterpart, very soon that organization is taken over by their competitors. Process Outsourcing also helps the organization in controlling and cutting their expenses. By outsourcing their work, the company frees itself from the huge capital investment that would be required in order to hire man power as well as machines for that particular work. Even after that huge investment, one will not get cent percent result at once. That will come gradually with time. In this era of fast moving market, very soon the appliances get outdated and hence a new investment of capital will be required. But by Process outsourcing, the company just needs to pay the service provider as per the work, thus saving a huge capital. Therefore Process Outsourcing has plenty of benefits as mentioned above and due to these benefits it is gradually becoming the trend of the market.

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11/07/2011 10:19

Process Outsourcing Solutions: How to Benefit from It

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Process Outsourcing Solutions: How to Benefit from It

Previously the term outsourcing was associated with manufacturing firms but now it primarily refers to the outsourcing of services. Business process outsourcing involves the handing over the responsibilities and operations to a third party service provider. So the process outsourcing solutions can be divided into two categories- back office outsourcing and front office outsourcing. Back office outsourcing deals with internal business processes like human resource or accounting and finance. On the other hand front office outsourcing deals with the services which are more customer-related such as contact center services. When a BPO is contracted outside the companys country it is known as offshore outsourcing. When it is given to a neighboring country it is known as near-shore outsourcing. Process outsourcing solutions also include Knowledge Process Outsourcing and Legal Process Outsourcing; apart from the general IT related BPO. It is also known as information technology enabled service (ITES). The market of BPO industry is growing at a tremendous pace. India has about 5-6% share of the entire BPO industry but an impressive 63% of the offshore part of the industry is also under the IT giant. Other countries include Morocco, Egypt, Philippines, and South Africa. China is also one nation which is growing at a great speed starting from a small base. Now we come to the benefits and limitations of process outsourcing solutions- how effective it is. The first important advantage of a BPO is that it helps to increase the flexibility of the company in different ways. Almost all the service providers work on the principle of fee-for-service. This is helpful to the company as it makes it more flexible as the fixed costs into variable ones. This variable cost enables the company to respond to changes in the capacity required and the company need not invest money in assets. Another way in which the company becomes more flexible by opting for process outsourcing solutions is that it can focus on the main competencies. Thus the burden of meeting the practical restraints is lessened. The main employees can therefore focus more on the companys core businesses. BPO increases the flexibility also by increasing the speed of business functions. The above mentioned examples are always there but there are some constraints which a company should be aware of. The problems which can arise are that service levels are not met, the contractual issues are not clear. Also much dependence on BPO can reduce flexibility.

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11/07/2011 10:22

Pros and Cons of Process of Outsourcing

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Pros and Cons of Process of Outsourcing

Process of Outsourcing is an act of outsourcing the business processes or functions to a third party service provider. The third party service provider completes the given function or process under the given payment from the main company as per the contract between them. Thus, outsourcing is simply an act of shifting the essential operations of the company to the service providers for various benefits of the company. This essential operation does not comprise the core functions of the company. The processes which are outsourced may not be core, but are very essential for the smooth functioning of the company. Though the outsourcing Processes are not core processes, yet they are outsourced because there are various benefits of Process of Outsourcing. Process of Outsourcing is very much advantageous for the companies that practice it. The Process of Outsourcing helps in improving the quality of the work. By giving the work to the third party service provider, the work and its quality gets enhanced. This is because of the fact that the third party service provider takes the work that they think themselves to be better in. thus, their skill and experience of that particular sphere benefits the company. Apart from quality, by Process of Outsourcing, a company also cuts down its expenses. The company no more requires making huge investment of the capital on the man power and appliances. They simply can provide the third Party Vendor with the money as per the quality of the work they get back in return. Thus, they get free from the monthly expenses of the man power and time to time investment on the appliances which get outdated gradually with time. However, Process of Outsourcing Comprises of many drawbacks also along with the above mentioned benefits. The first disadvantageous factor is the risk that is involved in the Process Outsourcing. Other factor is the lack in security of the process that is outsourced. The project when is outsourced shares the confidential and secured information of it with the third party organization also, thus decreasing the level of security. Therefore Process of Outsourcing has both advantageous as well as disadvantages. They can benefit to the company in a great deal, but at the same time, the risk involved with it cannot be underestimated. However, if one minimizes the risk factors by managing them properly, one can have maximum outcome through Process of Outsourcing.

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11/07/2011 10:22

Services offered by business process outsourcing

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Services offered by business process outsourcing

Business process outsourcing (BPO) involves the assortment of operations and responsibilities of particular business function to a third party service provider. Basically BPO can be classified into back office outsourcing and front office outsourcing. The former comprises of the accounting and some function of internal business as finance or man power, while the latter deals with services associated to customers such as contact services. Near shore outsourcing is restricted to the country, while offshore outsourcing is related to the matter associated with the overseas countries.BPO dealing with IT industries are labeled as the ITES (Information Technology Enabled Services). Some other segments are Knowledge Process Outsourcing (KPO) and Legal Process Outsourcing (LPO). The BPO industries are growing exponentially. Revenue of 10.9 billion USD is earned by India from offshore BPO, whereas 30 billion USD is earned by total BPO. India has occupied some 5-6% of the worlds total BPO industries. Even China who is a newcomer in this arena is also showing a remarkable progress. This clearly shows the impact of BPO industries on the world economy. The major sectors which are served by the BPO are retail banking (35-40%), insurance (25-35%), travel/hospitality (10-12%), auto (8-10%), others (10-15%). To increase the flexibility of the company is the one of the most prominent services offered by the business process outsourcing industries. Moreover there are few other ways by the several sources can boost up the flexibility of an organization. The BPO vendors provide most of their services on a fee-for-service basis. By this the company becomes more flexible by transforming its fixed costs into variable costs. The structure of variable cost is more elastic and helps the company to respond to the change in a predetermined capital as well as it also helps the company to not to invest in assets. Thus make the company more flexible. It also provides an option of increased elasticity in companys resource management. The response time to the major environmental changes is also subjected to reduce. Also BPO increase companys flexibility by focusing on its main competencies by avoiding the load of the demands of bureaucratic restraints. The main employees are free from the headache of these organizational processes and can work more efficiently in the building the companys core businesses. By focusing more on the issues like customer relationship, product management, or operational brilliance a company can create a competitive boundary. Escalating the pace of commerce of a company is also the main procedure to increase the firms flexibility. Business management with the sufficient use of the available partners and BPO will pace up the velocity of several business processes.

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11/07/2011 10:23

The Basics of Business Processes Outsourcing

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The Basics of Business Processes Outsourcing

What is outsourcing? In order to run the business efficiently and to generate more profits the process of outsourcing is followed. Outsourcing deals with the process of transfer of work or service to a third party, who carries out the job of the parent company for pay. This process is advantageous since every successful business deals with generation of ample profits and the reduction of costs. Since outsourcing is generally done in developing economies like India and China where labor is cheap and quality of service is high, the result is high quality work and service. What is Business Process Outsourcing? Business Process Outsourcing is a form of outsourcing in which the Business process of an organization ranging from keeping the accounts of the parent company to attending their customers in call centers, all are a part of a Business process Outsourcing. This reduces the operating cost of the parent company, since the people working for the company belong to a nation where the labor cost is cheap and the same work is done in a much lesser cost and also high quality of service is obtained since people for these countries do not mind working overtime or working in night shifts, for some extra pay, while their American and British counterparts in which the parent companies are situated lack professionalism and also charge high, also they do not prefer working late hours or doing some overtime. Types of Business Processes Outsourcing Business Process Outsourcing is of two types 1. Inshore outsourcing or Local Outsourcing 2. Offshore outsourcing or Global Outsourcing Inshore outsourcing is the process of outsourcing carried out in the geographical or political region in which the parent company is situated. For example a company situated in New York outsourcing its work to Mexico Offshore outsourcing is the process of outsourcing carried out on a different geographical or political location in which the parent company is situated. For example a company situated in the US transferring its work and service to a company based in India. Generally the later i.e. offshore business process outsourcing is carried out since the economic and work environment doesnt differ much in a particular geographic location, and the inshore outsourcing process doesnt bear any fruit. Advantages of outsourcing The following are the advantages of Business processes outsourcing: 1. Reduction in Operating Costs: Operating costs is reduced since the process is transferred to a country where labor costs are low. 2. Improvement of Quality: The quality of service is improved since professionalism is present in the employees at these locations. 3. Increase of the volume and pace of work: Since the work is transferred to various companies the pace of work increases.

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11/07/2011 10:24

Understanding Business Outsourcing Process

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Understanding Business Outsourcing Process

Business outsourcing process is the process of transferring business activities from the parent company to any third party in order to meet the organizational objectives. BPO is different from software or IT outsourcing in which the work is totally transferred to a third party, it deals with various other activities, such as data center operations, or testing and quality assurance. BPO in its early days dealt only with processes like payroll and accounts, but nowadays the system has taken over almost all the business processes ranging from financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting and payroll. The outsourcing processes nowadays are complicated and the profit generated by a single contract can run up to millions of dollars. Its a highly promising field and high amount of growth opportunities since the people working for the company carrying on the process of the parent company sometimes join the parent company itself. This form of outsourcing is carried out by many leading companies nowadays, ranging from global leaders like Accenture, IBM, and Hewitt Associates, and many other companies like TCS, IBM, Wipro, and Infosys. Most of the Business outsourcing process is carried out through off shoring, since it provides an additional advantage, of reduced costs and improvement of quality. If a process is outsourced away from the country the parent company is based in, the operating cost is reduced, since the chosen destinations are places like India and China, which are the worlds largest developing economies. The labor costs at these destinations are less and the quality of the service is high since the professionals in these places are highly competent and are highly skilled, also they are highly professional in their approach so the quality automatically becomes good. The other forms of BPO are ITES (information technology-enabled services) and the KPO i.e. Knowledge Process Outsourcing. KPO is similar to BPO in operation but somewhat different in content since it requires proper technical skills and good knowledge base in order to carry out the process. For example, for an IT firm, the support for its products such as software is provided by skilled and knowledgeable personnel. The destination for KPO is generally India and China, the former is the preferable destination due to the high English Language skills, and good Technical skills. A speculation exists that if China learns English then it will overtake India in this business, due to its highly cheap labor and good technical skills.

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11/07/2011 10:25

Why Should One Go for Outsource Process?

Outsourced Process Subscribe Outsourced Process Outsourcing Process Strategy

Why Should One Go for Outsource Process?

The market today is moving with a pace that is hard to maintain for any company. With so much of competition all around, the companies need some way to cope up with the present days market, and Outsource Process is one of those ways. Outsourcing is basically referred to as the act in which a company transfers its function or operation to a third party service provider and the process which are outsourced, called Outsourced Process. Thus, an outsource Process gains numerous benefits in the act of outsourcing. This is one of the reasons that corporate houses all over the globe are opting for outsource process. As mentioned above an Outsourced Process has many benefits because of which Corporate houses are either already opting or should be opting for outsourcing. An Outsource process is better in many perspectives. First factor which puts it above is that it has a better quality. It does not stand that the processes that are not outsourced lack quality, but those processes which are outsourced do certainly have a better quality. This is because the third party service providers whom the work is provided for are actually skilled and experienced in that form of work and hence these factors enhance the quality of the process. Another advantage of Outsource Process is that it helps the companies in maintaining their expenses. With the help of Outsource Process, the companies can control their capital investment on the man power as well as the appliances. The expenditure on Man power and appliances, both require time to time investment and by saving that, the companies can save a lot of money. Thus, going for outsource Process Can be extremely beneficial for the company from the monitory front. Going for Outsource Process also helps the corporate houses in saving their time. With the help of Outsource Process, the company can concentrate on another process and at the same time, the outsourced process will be worked upon by the third party vendor. That means the company can work on two processes simultaneously, thus enhancing the pace of the company and it is known to all of us how important pace is in work in the present market. It would be wrong to state that Outsourcing only posses advantages and has no drawbacks. An Outsourced Process also involves a lot of risk with itself, but these risks are manageable and very less in comparisons to the benefits that it has for the companies practicing it.

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11/07/2011 10:25