Outsourcing and Business Outsourcing Defined
According to Wikipedia, Outsourcing is delegation of non-core operations or jobs from internal production within a business to an external entity meaning it is a form of a subcontractor wherein decision is being made by the management of the company when their internal workforce cannot comply with their present requirements or having back logs on their operations. It is also a business decision that is often made to lower costs or focus on competencies.
Although common connotation with the word Outsourcing is for call centers. There's is a big difference to its related term "offshoring". This is primarily used terms when you mean transferring of work to another country, typically overseas. But at present, Offshoring is already considered similar to outsourcing when companies hire overseas subcontractors, but differs when companies transfer work to the same company in another country.
Now, here comes another term "business outsourcing".This is an act of transferring some of an organization's repeated non-core and core business processes to an outside provider to achieve cost reductions while improving service quality. Because the processes are repeated and a long-term contract is used, outsourcing goes far beyond the use of consultants. The main difference between BPO and more traditional outsourcing is that BPO offers companies a way of achieving transformational outcomes much more quickly.
The most common business process that gets outsourced is call centers. Call centers and Help Desks of many multi national and fortune 500 companies are being outsourced to low waged, English speaking countries such as Philippines and India. Countries like India with vast IT human resources are also attracting outsourcing from American IT/Technology companies to outsource their IT Help Desks. Many of these help desks are state of the art with latest Help Desk software and help desk hardware with technical savvy IT graduates behind them answering your questions.
The likes of Adobe, Inc, a giant software development company also outsource from the Philippines. Some contents of their website are being done by Filipinos. This offshoring or outsourcing needs for these multinational companies are going to its high peak by 2008 according to some IT reports. Therefore, Business Process Outsourcing can leverages process driven with efficiencies in terms of organizational excellence, responsiveness & branding, financial efficiency and customer relationship. It is now emerge as a powerful and flexible approach that business leaders can use to achieve a wide range of tactical and strategic aims.
According to Wikipedia, Outsourcing is delegation of non-core operations or jobs from internal production within a business to an external entity meaning it is a form of a subcontractor wherein decision is being made by the management of the company when their internal workforce cannot comply with their present requirements or having back logs on their operations. It is also a business decision that is often made to lower costs or focus on competencies.
Although common connotation with the word Outsourcing is for call centers. There's is a big difference to its related term "offshoring". This is primarily used terms when you mean transferring of work to another country, typically overseas. But at present, Offshoring is already considered similar to outsourcing when companies hire overseas subcontractors, but differs when companies transfer work to the same company in another country.
Now, here comes another term "business outsourcing".This is an act of transferring some of an organization's repeated non-core and core business processes to an outside provider to achieve cost reductions while improving service quality. Because the processes are repeated and a long-term contract is used, outsourcing goes far beyond the use of consultants. The main difference between BPO and more traditional outsourcing is that BPO offers companies a way of achieving transformational outcomes much more quickly.
The most common business process that gets outsourced is call centers. Call centers and Help Desks of many multi national and fortune 500 companies are being outsourced to low waged, English speaking countries such as Philippines and India. Countries like India with vast IT human resources are also attracting outsourcing from American IT/Technology companies to outsource their IT Help Desks. Many of these help desks are state of the art with latest Help Desk software and help desk hardware with technical savvy IT graduates behind them answering your questions.
The likes of Adobe, Inc, a giant software development company also outsource from the Philippines. Some contents of their website are being done by Filipinos. This offshoring or outsourcing needs for these multinational companies are going to its high peak by 2008 according to some IT reports. Therefore, Business Process Outsourcing can leverages process driven with efficiencies in terms of organizational excellence, responsiveness & branding, financial efficiency and customer relationship. It is now emerge as a powerful and flexible approach that business leaders can use to achieve a wide range of tactical and strategic aims.
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