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Business Process Outsourcing occurs when an organization turns over the management and optimization of a business function, such as accounts payable or purchasing, to a third party that conducts the activity based on a set of predetermined performance metrics. – Computer World
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BPO: A Transformational Strategy • Definitions • DEFINITION: Business Process Outsourcing occurs when an organization turns over the management and optimization of a business function, such as accounts payable or purchasing, to a third party that conducts the activity based on a set of predetermined performance metrics. – Computer World • DEFINITION: Transformation a : to change in composition or structure b : to change the outward form or appearance of c : to change in character or condition: - Webster’s • Trend: BPO Market will grow to 146 billion dollar industry by 2008 – Forrester
Business Transformation • Transformation is About Change, It’s About Business Improvement • Better Delivery – Products & Services • Better Processes – Streamlined & Clean • Lower Costs – Business & IT Services • Greater Flexibility To Grow The Business • Consolidation – Fewer Moving Parts • Increased Share Holder Value • “Work for what you believe in.”
BPO is A Transformation Strategy • Transformation is About Change, It’s Not Repeating Or Replicating Today’s Limitations & Issues • BPO is Transformation • Delivers Better Processes – Facilitates Today's Business Objectives, Best Of Breed • Delivers Modern Applications – No More Piecing Together Disparate Packages • Delivers End To End Well Configured Components – Common Look and Feel Across All Products • Delivers Time To Market and Lower Cost
BPO Transformation • BPO Transforms When: • You Derive Value From Every Aspect Of The Business – Not Just An IT Solution. • Deliver The Business Consistently Across Products – Fewer Resources Required. • Business Processes Align With Business Objectives. • Legacy Maintenance No Longer smother Business Growth. • Business Results are Improved. • BPO is Less Effective When: • Outsource The Business, Focused Only On The Savings From Labor Arbitrage . • Haven’t Driven Savings From All Aspects Of The Business. • Replicate The Deficiencies Under The Management Of Others. • Viewed As A Technology Solution. • You Haven’t Positioned Your Business For Growth And Business Results are Not Self Evident.
Why BPO As A Transformation Strategy • BPO is a Bundled Approach To Transformation – Processes, Technology, Service & People • Legacy Applications are So Intertwined Within A Company’s Infrastructure That Change Becomes More Difficult And More Expensive • BPO Strategy Focuses On Core & Non Core Functions By Bundling Technology, Business Process Improvement, Re-Engineering And Productivity Improvements Implemented As A Program In One Box • BPO Transformation is a fundamental Change From Legacy Business Problems And Legacy Applications To Best Of Breed Business Processes And Modern Technology Platforms.
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