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Searching
for a more effective way to access cutting-edge technology without
the huge capital outlay? Driven by an increasing cost structure
in a competitive business? Then business process outsourcing may
just be answers.
BPO
is the delegation of one or more IT-intensive business processes
to an external provider that in turn owns, administers, and manages
the selected process based on defined and measurable performance
criteria
Once
used for cost savings in transaction-intensive, back office business
processes, BPO has emerged as a flexible and powerful approach
to achieve a wide range of tactical and strategic aims, among
others:
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Speed to market. BPO allows start-up firms
to be fully operational with state-of-the-art capabilities in
weeks rather than months.
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Competitive capabilities. Established organizations
can turn also-ran processes into world-class capabilities.
- Cost
savings. BPO can dramatically lower costs.
- Growth
stimulus. BPO can be used to achieve unique, competitive
capabilities.
- Revenue.
Firms partner with their BPO provider enhance their knowledge
in exchange for shares in the revenues.
BPO,
or outsourcing in general, has conventionally been seen as a way
of cutting down on overhead expenses. This point of view has changed
over time. Now, BPO is seen more and more as a strategic move.
Outsourcing enables the company to concentrate on its core functions
and delegate noncore activities to a provider that specializes
in it. In the case of human resource outsourcing, HR functions
such as payroll and benefits, recruitment, and personnel evaluation
are passed on to an outsourcer that specializes in human resource
management (HRM) and who will keep the company abreast of constant
change in the field of HRM.
Frank
Casale, president of the Outsourcing Institute, says the real
benefit of BPO is in the value it brings that doesn’t necessarily
equal cost savings. “Things such as time to market and support
may not necessarily show up on a balance sheet, but can be critical
to a company’s success.”
In
the Philippines, BPO is seen as one of the drivers that would
secure the country the position of being top destination of choice
for ICT services. Some noncore yet critical backroom operations
that have been outsourced to the Philippines include accounting,
contact center services, human resource administration, claims
administration, and logistics. With its excellent telecommunications
infrastructure and its pool of superior talent, the Philippines
is at a good position to accommodate these demands.
Find a business solution right for you. Visit Outsourcing Services now!
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