What is Business Process Outsourcing (BPO)?

M

Madiha.m

#1
Hey This is Madiha..

Belong to Pakistan...

Thanks for such a nice platform...

Plz start some discussions on Business Process Outsourcing...

Good day to all :)

Thanks and Regards

Madiha
 
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M

Madiha.m

#3
Hello Gordon

BPO stands for Business Process Outsourcing..

Companies outsource there in-house chores to offshore companies, to reduce their work load and expenses.. as well as to enjoy leisure time :)

This is very beneficial for the companies as they make really increased profits, because the providers generally are developing countries such as Pakistan,, Philippines, India.. etc.. these countries have english as there second language..
they charge really low costs. As the currency of developed countries is several times greater in value than of the currency of these countries.. and that is why developed countries save money by outsourcing there tasks. Outsourcing services hired are numerous..

Hope it answers your question :)
:thanx:

See you!!
 
G

Gordon Clarke

#4
Thanks Madiha :)
One of my customers (here in Denmark) work with off-shore and are in the process of outsourcing a few things to Asia so now I can talk to them about BPO as if I understood it :)
You probably don't know this but Denmark (like Norway) actually produces more oil and gas than necessary for own purposes. We also have the largest windmill producing company in the world!
 
G

Gordon Clarke

#5
Sorry Madiha,
I may have misunderstood when you wrote "offshore". I'm now certain you meant out-sourcing work in countries where the wages are lower than in the country doing the out-sourcing - yes?
 
M

Madiha.m

#6
Gordon

You dont need to be sorry at all.. yea I meant the same
Anyways thanks for letting me know about Denmark as an oil producer..

Good day :)
 

harry

Super Moderator
#7
Re: What is Business Process Outsourcing?

Hey This is Madiha.. ............. Plz start some discussions on Business Process Outsourcing........... Madiha
Welcome,

Now that we had started a thread for you, please start the ball rolling!

For a start and definition of Wikipedia reference-linkBusiness_process_outsourcing

Business process outsourcing (BPO) contains the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the (activities of the) vendor for mutual long term success. BPO is positively related to the search for more efficient organizational designs: cost reduction, productivity growth and innovative capabilities. Hence, a source for strategic advantage.

Traditionally, BPO is undertaken by manufacturing firms. For instance Coca Cola, where almost the entire supply chain is outsourced and the company is essentially becoming a marketing organization.[1] However, BPO is nowadays rapidly conquering the service oriented firms as well. A well-known example is provided by the Bank of America, who outsourced their entire HR function to Exult, one of the leading Human Resources BPO vendors.
 

BradM

Staff member
Admin
#8
Re: What is Business Process Outsourcing?

Yes, Harry! Let the fun begin.

I'm glad you included the examples that you did. While Coca Cola and B of A did outsource much of what they do, I bet they retained their Core Competencies. That's important, IMHO. Each company (and each process, for that matter) should know what they're good at, and do it well.
 
G

Gordon Clarke

#9
Re: What is Business Process Outsourcing?

I've got the feeling there are two types of outsourcing (at least) and I'm not so sure one of them is what I'd consider outsourcing.
The one I don't feel is outsourcing is where companies (like Coca Cola, Pepsi Cola, MacDonalds, KFC etc.) have opened up in almost evey country in the world and have their "goods" produced in each country.
Then there are companies like Nike, Adidas etc. who have their stuff produced in the countries with the lowest wages. I read recently that one of them is moving their production from China I believe, to a country where wages are even lower. So much for trying to help.
I don't think we should kid ourselves as I'm almost certain the main motivation for outsourcing is just to get things made as cheaply as possible. Fundamentally there is nothing wrong with this thought, but if it only is about profit then I can't get myself to think it's wonderful.
Africa as a whole is a poor continent, and probably the one that gets most money sent without conditions, but I can't help but feel the more money that's given, the poorer the people seem to get. How about building factories there and it'll at least ensure that those that need the money most get it?
Just so I'm not misunderstood - I think outsourcing is good, but I'd like the motivation and conditions examined carefully. For example, some countries (a small percentage unfortunately) have a strict policy against child labour. As I mentioned in another thread, slavery (child labour) and drug dealing give great profits, but that doesn't make them acceptable.
Outsourcing is here to stay - but should be monitored to avooid misuse.
 

BradM

Staff member
Admin
#10
Re: What is Business Process Outsourcing?

Good points, Gordon, but like with Coca Cola, it is process outsourcing. They have to outsource their process, otherwise the product could not be produced to exacting specifications and consistency. Do you not agree?
 
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