The paper "The Principles of Effective Business Process Outsourcing" is a good example of business coursework. BPO is “ the contracting of a service provider to completely manage, deliver and operate one or more of a client’ s functions” (Misra 2010). Many businesses are involved in the activities of outsourcing at the present time: from finance to call centre, from development and research to IT software programming. And it has expanded worldwide: from “ support from India” , “ from made in China” to “ finance in the United States” . Furthermore, Jan & Michael (2010) states that Business Process Outsourcing (BPO), among other activities is a new catalogue of outsourcing, and is an option that has been that is being practised by most organisations the world over.
The transfer of business activities such as the customer services e. g. call centres, human resources management, monetary services etc. , to the third party is known as the BPO. Agrawal et al. (2006) further explain that Business process outsourcing, on the other hand, involves more than letting a partner produce parts and components. The objective of Business Process Outsourcing Cory (2012) posit that the absence of clear objectives can create difficulties in managing the outsourcing process in a number of areas including the relationship supply of the most suitable selection, by coming up with the contract and administrating the supplier relationship.
Well-founded goals will assist in the effective management of the outsourcing strategies (Misra 2010). Typical objectives for outsourcing can include (e. g., Bharadwaj et al. 2010), (e. g., Wang & Guo 2010; Geis 2010), enhancing levels of quality, and costs of outsourcing activities reduction while getting the higher levels of services in activities provisions (e. g., Brenda 2010).
The objectives for outsourcing are significant from a number of perspectives as mentioned below: Selecting the supply relationship – The objectives established for outsourcing will assist in selecting the type of supply relationship that should be adopted. For example, if the organisation is focusing primarily on attaining the lowest price, then an adversarial relationship is likely to be the most appropriate. Monitoring supplier performance – Once the relationship is established the performance of the supplier must be assessed on an ongoing basis. The outsourcing objectives will inform the metrics used to assess supplier performance throughout the life of the relationship.
For example, if enhanced service is the key objective for outsourcing, then clearly there must be a number of metrics used to measure performance in this area (Malmgren & Anderson 2010). Monitoring the supply nature relationship – It is important to monitor whether the relationship is meeting the overall outsourcing objectives. Conditions in the supply market can change which may affect the relationship with the supplier. The sourcing organisation’ s competitive position – It is important that the outsourcing objectives are linked with strategic objectives of the organisation.
In relation to critical activities, some of the objectives of outsourcing must reflect the overall strategic goals of the organisation. Although objectives that can be achieved in the short-term of outsourcing in a relatively short period of time may include reduced costs and increased productivity, there will be other objectives that are only achievable over the long-term. For example, an objective of outsourcing may include jointly developing complementary skills and capabilities in a particular process (Cory 2012).
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