The trend in the world of business grows rapidly. Historically, it is difficult to find the best solutions for the common issues in business such as quality, cost and innovation. Nevertheless, business experts have reacted by implementing strategies. One of these strategies is "the farming out of services to a third party" (Overby 2007), which is called outsourcing .According to The Daily Telegraph (2007), worldwide outsourcing is now valued at approximately $US4 trillion. Originally, it was thought that only IT management could be outsourced. However, this has changed as the Business Process Outsourcing (BPO) issue became a major point of discussion in the second half of 2003 (Click and Duning 2004, 209). This paper will define The BPO as well as its styles. Moreover, it will explain the categories of BPO with focus on some examples in Australia. Finally, it will outline the future effects of BPO on Australian politics and Australian workforce.
Since the second half of 2003, many definitions of BPO have been presented. Furthermore, to define BPO, lots of challenges have appeared. One of them is that the BPO refers to the outsourcing of any business process, which means a wide scope of possibilities such as financing, human resources, marketing and asset management (Halvey and Melby 2007, 3-4). In any case, as Halvey and Melby said (2007, 4) an official definition of BPO is found in The End-User Executive's Guide to PBO, which defines BPO as "the delegation of one or more intensive business processes to an external provider who, in turn, administrates and manages the selected processes based upon and measurable performance metrics."
In addition, there are three different styles of BPO. Firstly, offshore BPO, which is the m...
... middle of paper ...
...John Wiley and Sons, Inc.
Daily Telegraph, The (Sydney). 2007. Clear the deck and call in the experts. November 19, 77.
Halvey, J and B. Melby. 2007. Business Process Outsourcing: Process, Strategies and Contracts. New Jersey: John Wiley and Sons, Inc.
Holbert, N. and M. Speece. 1993. Practical Marketing Research: An Integrated Global Perspective. Singapore: Prentice Hall.
Lead Generation Company (LGCo.). 2005. LGCo. Homepage. www.lgco.com.au/ (accessed December 17, 2007).
Marketing Angels. 2007. Cases. www.marketingangels.com.au/ (accessed December 11, 2007).
Overby S. 2007. ABC: An Introduction to Outsourcing. CIO , August 30, 2007. www.cio.com (accessed November 5, 2007).
Teicher, J., B. Gramberg and P. Holland. 2000. Outsourcing in Australia and the trade union response: electricity generation In victoria. Working paper., Monash University.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
world are adopting BPO as a strategic business solution. The BPO industry is very diverse,
Kibbe, C. (2004). Outsourcing” the good, the bad, and the inevitable. New Hampshire Business Review, 26(14), 1A.
Where do you start? Developing the conceptual model for business outsourcing is relatively easy as compared with legal outsourcing. The difficulty lies in executing it. Why? For the same reason it's difficult to run a business - because you've got to manage strategy, structure business processes, applications, infrastructure, and the culture all at once. The latest trend which dominates offshoring legal support services is the spreading of legal web across the world and extending legal services to the advantage of the client. As the legal market across the globe becomes more and more competitive, increasing number of international organizations seek state-of-the-art legal LPO services to meet the rising demands of quality and cost effectiveness. The complexity of BPO is daunting, and that's why it's so difficult and so rarely done well.
To fully take advantage, the company needs to better understand its expectations on the subject, its obligations, along with its constraints and desires. It is therefore proper diagnosis of its needs can be acheived by asking the right questions. Many outsourcing operations prove to be a failure (Barthelemy, 2003; Bryce & Useem, 1998; Embleton & Wright, 1998). Many organisations are barely aware of the process that they initiate when they decide to outsource (van Engelen, 2005). Internal HR staff devotes only a fraction of its available time to the management of external relations and the monitoring of providers (Lepak & Snell,
After consulting various articles about the subject, the author will give a brief definition of what outsourcing is and the types of activities that companies source outside of their company’s boundaries. Moreover, the author will mention the risks that both the client and the service provider face when outsourcing takes place, and will also talk about how control measures of...
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
The global economy in today’s world is very competitive and it’s difficult for the companies to survive in such large market. Globalization has drastically affected the companies, which resulted in their low phase. This report analysis, that the studied company Platinum Concept Pty Ltd is only familiar with the manual system in their working process and is not aware of new automated machines or computerized systems. Hence, it has affected its growth and attainment resulting in devolution. Moreover, this report suggests adoption of Business Process Management for Jim’s business to retrieve its position by substitution of current manual practices with hi tech processes, good strategy and more fitting management to go along with it. Thereupon, it will be a methodize and a well-structured company which will eventually boost their performance along with aid in developing and maintaining good relations with its customer’s and also to withhold the company’s brand name.
According to Chang, (2016), Business Process Management (BPM) is a systematic approach of attaining organization’s goals by improving its management in addition to controlling the essential business processes. Moreover, a business process is defined as a set of activities that aid in accomplishing definite organizational goals. One of the aims of BPM is to trim down human fault and miscommunication as it can be seen in Mike’s Dynatrix Pty Ltd business. It is due to poor infrastructure management, which is significant for maintaining and optimizing an organization’s equipment along with core operations. It is important to note that business process management entails analysis, modeling, design and measurement of an organization’s workflow and are technology enabled. This implies that it is always the point of connection within an organization between the line-of-business and the information technology department.
Steven M. Bragg, " Outsourcing, A guide to... Selecting the correct Business Unit... Negotiating the contract... Maintaining control of the process", 1998
Lindsay, A., Downs, D., and Lunn, K., 2003. Business processes—attempts to find a definition. Information and Software Technology, 45 (15), 1015–1019.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
The BPM discipline has been built with the basis on office automation, work- flow management, operations research, lean manufacturing, six sigma, and business process reengineering [[60][61][56][11]].
In past few years, companies and industries of various sizes have become aware that they need to improve business processes such as product development, order fulfilment, planning, distribution, and customer service. So everybody is now focusing on doing process improvement or redesigning.
Furthermore, outsourcing is the other concept that will be beneficial for my business. Business process outsourcing (BPO) helps the bank to improve efficiency and cut the cost. I would like to outsource the need associated with technology that will help to be more flexible, proficient and more rapidly market. It helps to get cheap labor, better quality standard and to get new ideas to grow my business successfully and to exchange technologies.