Outsourcing and off shoring are used interchangeably. Outsourcing involves contracting with a supplier, whereas off shoring is the transfer of an organizational function to another country.
With emerging times and market dynamics there is now a very thin line drawn between outsourcing and off shoring.
(BPO) is a part of the outsourcing industry and is dependent on information technology. This is referred to as Information Technology Enabled Services or ITES. (KPO) and Legal Process Outsourcing (LPO) are some of the subsets of business process outsourcing to name a few.
BPO is also an extension of the Service Industry. A Service Level Agreement (SLA) measures the quality of service and contractual agreements. However a more iron clad contract is drawn out to weed out any contractual loop holes. This is referred to as the Service Delivery SLA.
An integral part of quality is CSAT scores. These are end user experiences measured through customer satisfaction questionnaires (CSAT). This function allows quality to be tracked over time and to tweak and fix any corrective action that has been identified and seek closure.
BPO vendors offer their services on a fee-for-service basis. This is either on a Full Time Employee (FTE) or Pay For Performance (PFP) model. A healthy BPO unit will invest in the time and tested variable cost structure function as it does not require investing in assets thus making the unit flexible in its scalability. This revenue generation model is rapidly increasing as it allows for optimal utilization of funds and resources to run day to day businesses.
In India, The National Association of Software and Services Companies (NASSCOM) mediates as a watch dog to the Indian software industry and Indian BPO industry.
A significant concern for the is Information Security and Data Intellectual Property. An outsourcing unit uses internal measures to minimize if not eradicate security issues besides seeking assistance from local law enforcement agencies. Such measures include but are not limited to:
1. Mobile phones and cameras are prohibited on the production floor as well as in data sensitive areas.
2. Ban on the usage of any recording devices on the production floor including paper and pens. This means creating a paperless environment wherein employees are restricted from recording any information and removing it where it can be accessed by unauthorized personnel.
3. Restricted or no usage of internet on the production floor for employees.
In India data security is governed under the Information Technology Act, 2000.
Business Process Outsourcing Management
Business process outsourcing is all about hiring the other businesses to deliver the work to you, so that you can concentrate on the core activities of your business. The core activities have been more important for establishing a particular business in the field. After all, you are spending so much to set up your business and missing out the core activities can cast a bad spell on the growth of your business. It is for this reason that big business house keep on outsourcing their non-core work, so that proper time should be given to the profit generating aspects of the business.
The concept of Business process outsourcing has been spreading its wings everywhere. Business process outsourcing is the outsourcing of back office and front office functions typically performed by white collar and clerical workers. It is like a contract that enables the business person to hire the services of an outsourcing firm that will manage and complete the tasks for them. As far as the contract policies are concerned, it becomes the entire responsibility of the service provider to complete the task well in time. Business process outsourcing is becoming more and more demandable and promising.
Business process outsourcing saves precious management time and resources and allows focus while building upon core competencies. There are various companies in foreign countries that keep on outsourcing their work such as call centre work, accounting work and many others. Outsourcing these forms of tasks also proves to be cost friendly for the big business houses. The company will not only save on the house rent allowances, bonuses, cash advances and various other ad ons, but will also be able to cut down on the huge salaries that a trained staff would demand.
When it comes to small business houses, it becomes difficult for them to outsource. Since the owner of these business houses keep on managing the task on their own; they hardly outsource their work to any other company. Whatever the case may be, business process outsourcing helps to a great extent in saving the money that can be invested in enhancing the progress of other departments. The main aim of this service is to save you from problems that may crop up at any point of time. In fact, business process outsourcing has become an important part of every type of business.
There are various things that have to be tackled in a particular business. If you are running a business house and are getting worried about the increasing load of the work, then outsourcing is the best option for you. Usually, the concept of business process outsourcing has earned a wide acclaim. This service providing division is slowly and slowly entering every business house and is creating a special place for itself. The professionals with outsourcing companies are skilled enough to manage the tasks properly and complete the work on time.
Both Peter Korte & Allies Harbor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Peter Korte has sinced written about articles on various topics from Telemarketing. An Author of this article Peter korte is working for . Gaia ITES Provides excellent
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