An Overview on Business Process Outsourcing

1)The Outsourcing market is estimated to grow tremendously in the coming few with an increasing number of companies planning to outsource both low end and high end jobs to offshore destinations. Also the number of companies providing outsourcing services is on the rise, thus resulting in larger variety



2)Outsourcing in the world today is seen as a strategic management option rather than just a cost cutting operation. It aids companies to achieve their business objectives through operational excellence and a better market position. In order for companies to focus on their core competencies, all companies today outsource one or more of their operations. In order to compete in the global economy companies need to focus their resources on their core operations



3)The benefits of outsourcing thus include professional manpower, cutting-edge technology and cost savings. Through outsourcing companies receive flexibility in decision-making and companies are able to quickly set up or change certain operations or processes depending on the requirements at hand.

The short term benefits gained through outsourcing:
• Ability to focus resources and attention on core business processes.
• Reduced human resource management costs
• Access as needed to specialized resources
• Refinement of risk management, project management, and service delivery abilities.
• Implementation of demand management and service delivery disciplines.
• More accurate process management and support operations.

Typical long-term benefits include:
• More predictable results-based budgeting for the outsourced function over the period of a certain outsourcing agreement.
• Joint and interactive problem solving and creativity.
• Superior management of the business operations portfolio.
• Better management, contracting, and outsourcing integration skills