my report for my entrep class: BPOs

1. BUSINESS PROCESS
OUTSOURCING
Kathleen Lizette C. Crisostomo – ENTREP

2. Business process outsourcing
(BPO)
 involves the contracting of the operations and
responsibilities of specific business functions
(or processes) to a third-party service provider

3. Business process outsourcing
(BPO)
 involves the contracting of the operations and
responsibilities of specific business functions
(or processes) to a third-party service provider
 Originally associated with manufacturing firms
which outsource segments of its supply chain
(logistics, subcontractors, etc.)

4. Business process outsourcing
(BPO)
 involves the contracting of the operations and
responsibilities of specific business functions
(or processes) to a third-party service provider
 Originally associated with manufacturing firms
which outsource segments of its supply chain
(logistics, subcontractors, etc.)
 Contemporary context: replacing in-house
services with labor from an outside firm

5. Manufacturing
Company

6. Payrol
l
Manufacturing
Company

7. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Manufacturing
Company

8. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Financial
Services
Firm
Manufacturing
Company

9. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Financial
Services
Firm
Manufacturing
Company
Payroll
Specialist

10. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Financial
Services
Firm
Manufacturing
Company
Payroll
Mone Specialist
y

11. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Financial
Services
Firm
Manufacturing
Company
Payroll
Time Mone Specialist
y

12. •Takes too much time
•Not their expertise
Payrol •Costly: salaries, time,
equipment
l
??
?
Financial
Services
Firm
Manufacturing
Company
Payroll
Time Mone Specialist
Satisfactio
y

13. VIDEO!
Outsourced

14. Common forms
Back-Office
Outsourcing
•Internal business
processes
•Ex. Finance, HR

15. Common forms
Back-Office Front-Office
Outsourcing Outsourcing
•Internal business •Customer-related
processes processes
•Ex. Finance, HR •Ex. Contact Center

16. Terminologies
 Nearshore Outsourcing
 BPO that is contracted to a company's
neighboring (or nearby) country

17. Terminologies
 Nearshore Outsourcing
Spanish Speaking Call Relocation of the
Center based in Los program to Mexico
Angeles

18. Terminologies
 Offshore Outsourcing (a.k.a. Offshoring)
 BPO that is contracted outside a company's
country

19. Terminologies
 Offshore Outsourcing (a.k.a. Offshoring)
Technical support Relocation of the
account for a telecom program to The
company based in Philippines
Chicago

20. What’s emerging in the
Philippines?
 Call Centre
 Legal, medical and financial transcription
 Finance and accounting
 ITES (Information Technology Enabled
Service)
 Supply Chain and Logistics
 Knowledge Process Outsourcing (higher level:
R&D, product development and legal e-
discovery)

21. Outsourcing your Business
 Gartner’s Outsourcing Model
1. Sourcing Strategy
• “Why am I doing this?”  transform the
business? Cost savings? Increase revenue?
• "What kind of relationship do I want with a
provider?”
• What to keep in-house and what to outsource
(risk management)

22. Outsourcing your Business
 Gartner’s Outsourcing Model
2. Evaluation and Selection
• Expertise vs. price
• “Should I go offshore?”

23. Outsourcing your Business
 Gartner’s Outsourcing Model
3. Contract Development
• Long enough to make a difference but short
enough to measure flexibility
• An outsourcing contract often results in deep,
long-lasting changes in strategy
• It takes time to outsource; if you want to return
to in-house, it will also take time

24. Outsourcing your Business
 Gartner’s Outsourcing Model
4. Sourcing Management
• What's done after the contracts are already in
place
• Service Level Agreement (SLA)
• Vendor and client should re-evaluate the
contract and the relationship periodically (Is the
service provider meeting their requirements? Are
there some requirements clients have to meet?)

25. BUSINESS PROCESS
OUTSOURCING
Kathleen Lizette C. Crisostomo – ENTREP

26. References
 Blacharski, D. (2012). The Basics of Business
Process Outsourcing. Sourcing Mag.
Retreived June 3, 2012 from
http://www.sourcingmag.com/content/c060405
a.asp
 Outsourcing-Gartner. Gartner Research.
Retrieved June 4, 2012 from
http://www.gartner.com/technology/core/produ
cts/research/topics/outsourcing.jsp
 Wikipedia