What is Business Process Outsourcing definition advantages and disadvantages

Business process outsourcing

Business process outsourcing

Business Process Outsourcing (BPO) is a type of outsourcing in which a company outsources non-core business processes to another company. BPO is the most flexible form of outsourcing, involving a close relationship between the customer and outsourcing provider.

Unlike piecemeal outsourcing of individual projects with specific deadlines and budgets, business process outsourcing may not have fixed time or budget restrictions. With BPO, outsourcers are in charge of an entire functional area of the business, not just separate tasks.

BPO definition

While BPO is defined as outsourcing of any process area, the term is often used to also refer to narrower types of outsourcing. Outsourcing of industrial manufacturing (essentially a type of BPO) is often broken out into a separate type of manufacturing (or industrial) outsourcing. BPO is rarely used to describe outsourcing of auxiliary processes such as facilities cleaning or cafeteria services.

Most often, BPO refers to outsourcing of high-level processes, typically related to finance, personnel, marketing, or legal support. IT and corporate information systems are often included as part of business process outsourcing.

BPO advantages and shortcomings

The advantages of BPO are virtually identical to the advantages of piecemeal outsourcing. In both cases, the main goal of outsourcing is to control costs thanks to the greater competency of the contractor in the relevant business processes or tasks. Compared to task-by-task outsourcing, BPO achieves even greater cost savings over the long term but requires more initial preparation.

In some cases the main push for BPO is not due to cost savings, but the desire for greater control and predictability. BPO makes costs predictable through clear financial terms stipulated in the contract and service level agreement (SLA).

The main disadvantages of BPO include its relative complexity: it is much more difficult to entrust entire business processes, as opposed to specific tasks, to an outside contractor. So this kind of outsourcing requires more comprehensive preliminary analysis when selecting a contractor, as well as possible adaptation of business processes before outsourcing them.

The economic benefits of BPO are accomplished through the contractor s greater competence in non-core (for the customer) business processes. Transfer of specific business processes is rarely the goal of BPO. In most cases, BPO involves outsourcing of processes that are found at almost all organizations, such as personnel management, tax accounting and payroll. BPO tends to have a smaller scope of application than simpler outsourcing of tasks.

With BPO, outsourcers are responsible for larger functional areas and the customer is naturally concerned about the quality and safety of services. This worry is one of the factors holding back BPO, since the high expectations of customers are not always in keeping with the reputation and past experience of some service vendors on the market.

Overall, the advantages and shortcomings of BPO are very similar to those of outsourcing in general. As the most flexible form of outsourcing, business process outsourcing can bring maximum benefits but has larger shortcomings and a smaller scope of application.

BPO examples

There are many types of BPO worldwide today and many of these are in successful use at Russian businesses. Depending on the specifics and industry of each specific company, the processes to be outsourced can differ significantly. Nonetheless, there are several textbook examples of BPO that are representative of almost all sufficiently large businesses.

HR management outsourcing

All companies have to deal with personnel management: hiring, payroll, and tax reporting. The vast majority of companies do not specialize in these services, however, and do not have the necessary expertise. This is one of the reasons why Human Resources Outsourcing (HRO) has become so popular.

In most cases, outsourced tasks are related to employee selection and recruitment (as well as staff leasing and outstaffing). HR administration and payroll are outsourced less frequently.

Russian companies often outsource HR management. Staffing agencies are examples of companies providing selection and hiring services. There are relatively few providers of comprehensive staff management and HR recordkeeping services, among which the UCMS Group and Intercomp are among the largest in Russia.

Outsourcing of customer management and call centers

One widespread example of BPO is outsourcing of customer relationship management (CRM), including outsourcing of phone calls to dedicated call centers. The vast majority of Western companies use this type of BPO, placing expensive call centers in locations with low prevailing wages and even in other countries.

India is regarded as the hotbed of call center outsourcing services, by providing acceptable quality to Western companies at very low prices (thanks to low wages). Oftentimes call centers are located in Eastern Europe and in some Arab countries (such as Egypt).

Outsourcing of call centers is quite common in Russia, but is of a slightly different form. Russian-language requirements rule out all countries except for parts of the former Soviet Union. Many Russian companies prefer to place their customer service centers in provincial Russian cities with comparatively low wages. A special legal entity is established for running the call center, which allows calling the process outsourcing. There are also independent companies on the market that provide comprehensive services for call center outsourcing.

Outsourcing of accounting

Outsourcing of accounting and bookkeeping is much like outsourcing of HR management. In both cases, the contractor is given non-specific functions that are necessary for companies of all sizes and industries.

In theory and in practice, outsourcers can perform all accounting functions, down to completing bank payments and providing source documents to contract partners. However, this does not prevent setting up complicated and flexible business processes that combine outside companies and in-house staff to achieve maximum efficiency.

One of the most common concerns about outsourcing of accounting and bookkeeping concerns the security of sensitive financial information – any outsourcing company will go to great lengths to protect its market reputation and existing customer base.

Outsourcing of IT processes

Many types of BPO have become more available thanks to the near-universal adoption of IT, reducing the cost and time necessary for coordination between the customer and outsourcer. Before the 1990s, some types of outsourcing (such as offshore call centers) were almost impossible due to technical reasons. This is why the term “outsourcing” is so often associated with IT, although the term itself does not imply it.

Today s IT industry is rich with examples of BPO: manufacturing and software development are often outsourced. Traditionally, the leader in IT manufacturing is China, with offshore software development concentrated in India, Eastern Europe and Russia. In 2007–08, several leading IT firms swooped into Russia to set up development centers.

Often “IT BPO” is taken to mean outsourcing of corporate IT processes that are not related to IT itself. In Western countries, comprehensive IT outsourcing has caught on, in which the contractor manages the customer s entire IT infrastructure. This approach is extremely rare in Russia, where companies prefer to limit themselves to certain types of IT BPO, such as hosting of applications or corporate sites. The main providers of IT outsourcing in Russia today are traditional systems integrators for which BPO is not their core business. At the same time, IBM and HP are very actively increasing their presence in the Russian IT services market.

Software on Demand

Software on Demand (SoD) is a type of IT process outsourcing. Unlike ordinary hosting, an SoD outsourcer both provides the hardware for hosting information systems and ensures their installation, support, and updates.

With SoD, customers pay not for ownership of software per se, but rent it (accessing it through a web interface). So unlike traditional software licensing schemes, the customer has relatively small recurring payments and does not have to make large investments in system acquisition. Recurring payments also mean that if the customer does not need the software for a time, the customer can stop using it and freeze payments to the developer.

SoD is a clear example of the relationship between different kinds of BPO. Developers of SoD systems for personnel management or bookkeeping can also be providers of BPO in these areas. One example is the UCMS Group, which develops the Quinyx HR management system while also providing outsourcing of HR processes.



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start up business ideas

Start up business ideas

Imagine a life where all your time is spent on the things you want to do.

Imagine handing a letter to your boss that reads, “Dear Boss, I’m writing to let you know that your services are no longer required. Thanks for everything, but I’ll be doing things my own way now.”

Imagine that today is your final day of working for anyone other than yourself. What if—very soon, not in some distant, undefined future—you prepare for work by firing up a laptop in your home office, walking into a storefront you’ve opened, phoning a client who trusts you for helpful advice, or otherwise doing what you want instead of what someone tells you to do?

All over the world, and in many different ways, thousands of people are doing exactly that. They are rewriting the rules of work, becoming their own bosses, and creating a new future.

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In The $100 Startup, Chris Guillebeau shows you how to lead a life of adventure, meaning and purpose — and earn a good living.

Still in his early thirties, Chris is on the verge of completing a tour of every country on earth — he s already visited more than 175 nations — and yet he s never held a real job or earned a regular paycheck. Rather, he has a special genius for turning ideas into income, and he uses what he earns both to support his life of adventure and to give back.

There are many others like Chris — those who ve found ways to opt out of traditional employment and create the time and income to pursue what they find meaningful. Sometimes, achieving that perfect blend of passion and income doesn t depend on shelving what you currently do. You can start small with your venture, committing little time or money, and wait to take the real plunge when you re sure it s successful.

In preparing to write this book, Chris identified 1,500 individuals who have built businesses earning $50,000 or more from a modest investment (in many cases, $100 or less), and from that group he s chosen to focus on the 50 most intriguing case studies. In nearly all cases, people with no special skills discovered aspects of their personal passions that could be monetized, and were able to restructure their lives in ways that gave them greater freedom and fulfillment.

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You don t need an MBA, a business plan or even employees. All you need is a product or service that springs from what you love to do anyway, people willing to pay, and a way to get paid

Not content to talk in generalities, Chris tells you exactly how many dollars his group of unexpected entrepreneurs required to get their projects up and running; what these individuals did in the first weeks and months to generate significant cash; some of the key mistakes they made along the way, and the crucial insights that made the business stick. Among Chris s key principles: if you re good at one thing, you re probably good at something else; never teach a man to fish — sell him the fish instead; and in the battle between planning and action, action wins.

In ancient times, people who were dissatisfied with their lives dreamed of finding magic lamps, buried treasure, or streets paved with gold. Today, we know that it s up to us to change our lives. And the best part is, if we change our own life, we can help others change theirs. This remarkable book will start you on your way.

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Starting in New York City and going to the ends of the earth, we ll be hitting all 7 continents with the message of The $100 Startup.

Chris is currently on tour hiatus while preparing for the World Domination Summit and completing a new book. More tour dates will be coming later this year!

If you represent a group, organization, or bookstore, you can also suggest a future tour stop.

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El festival está organizado por la Cátedra de Emprendimiento de la escuela, la Option E, y está enfocado a ayudar a los emprendedores a a.

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What Are Ways To Initiate And Lead Change?

By many metrics, incarceration rates are growing in America with valid concerns about a “cradle-to-prison” pipeline in certain regions. With thirty-one states currently supporting the death penalty backed by a moral, “an eye for an eye,” position, how should Christians.

Politics. Religion. Media. Race. Economics. We’ve reached a new boiling point in America. Elected leaders tweet. Professional athletes kneel. Hollywood icons protest. Pundits preach. Trickle-down division is reaching us all. Neighbors. Co-workers. Families. Friends. Differences are good. Disagreements are.

In an age of protests like Black Lives Matter, the Women’s March, and increased political demonstrations, it seems the best way to rage against the machine and make your voice heard is protest. As the creator of the global Occupy.

The suffering, injustice and brokenness that exists in our world can be paralyzing. But what if those needs were an invitation for each of us to find the meaning God has purposed in our hearts? Author, activist, and abolitionist Justin.

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Soaring crime is the result of segregation, rising poverty and a dysfunctional police force.



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  • Top 10 Profitable Small Business Ideas for Small Towns

    Even if there are limited opportunities for business in a small community, there are still various ways for an entrepreneur to survive in the community. There should be no doubt that there will be small business ideas for small towns that are likely to be profitable. The main incentive for venturing in business in such locations is the smaller capital needed and the lower overhead.

    It is easier to organize a business in a small town where people know each other. Every person is good at something and harnessing each person’s skills and capabilities will lead to a circle of prosperity. Explore the top profitability ideas for small towns in the list below.

    10. Local clothing

    Weekend business ideas

    People who live in smaller communities have a distinct advantage. They are more used to a traditional way of life and children, especially the women are taught domestic chores at an early age. For sure, there will be one or two seamstresses in the community. Use this to advantage and search online for ideas on how to create visors, caps, bags, shirts and other articles of clothing to promote local pride. Make the items available in local stores. Visitors to your community would find souvenirs like these interesting.

    9. Local jewelry

    Weekend business ideas

    In the same manner, you could harness your artistic talent to turn local items into jewelry. Check local history books, talk with older citizens in your community to find out more about local customs and traditions and draw inspiration from them. Rocks, shells, pottery, driftwood and other items found in your neighborhood could be turned into beautifully creative key chains, bookmarks, pendants, earrings, necklaces and bracelets. The outline of your community or your state could be made into a unique design for the above items.

    8. Make local postcards

    Weekend business ideas

    If you are good with a camera and have the eye for beauty, scour your town for the perfect scenic spots and take pictures. Turn these into postcards, posters and photo frames that you could sell locally and online. In the same token, you might even be a guide for hire when visitors come to your town.

    7. Local and organic foods

    Weekend business ideas

    Give value to local produce by going organic. More and more people are aware of the harm done not only to the environment but also to consumers of food that are not pesticide-free. You could organize weekend organic markets to encourage other farmers to use organic farming methods. Your business could be a hit when you announce the event and invite consumers from neighboring towns to come. Extend the organic vegetable market by selling condiments, sauces and local delicacies made from organic produce harvested from your local farms. Get certified as an organic farmer so you could sell your produce to larger markets, not just locally.

    6. Local outdoor sports

    Weekend business ideas

    Your town might have a spot for bird watching. This is one of the top outdoor sports in the country and hundreds of bird watching enthusiasts usually flock to different parts of the country each season. Get expert help to come up with a local bird watching reference guide to sell to visitors. Are you near mountains, white water rapids, caves or parks? You could organize hiking adventures, cave exploration or outdoor camps for summer, all laced with local hospitality.

    5. Sell local produce online

    Weekend business ideas

    If you are a farmer, do not concentrate on just your local market. Expand your business by creating a website and selling your produce online. There are several tutorials on how to set up a simple website or hire the services of a web designer to help you come up with the perfect design that is simple to update. Include an e-commerce system and organize a delivery system. Aside from perennial produce, you could give focus to seasonal fruits and vegetables that are attractive to most consumers. Your local trade and business bureau will have plenty of information on how to go about this.

    4. Buy global products to sell locally

    Weekend business ideas

    There are still plenty of small business ideas for small towns that you can find here. Oftentimes you will only find products locally manufactured sold at stores around a small community. However, there is always a market for people who want to buy global products. Make it easy for them to find these types of products by buying them and selling them to local customers. You only have to make a survey of what people in your community are looking for and then you source them out. You have the choice to buy both perishable and non-perishable goods if you have a good storage system or concentrate on one to avoid food spoilage, high inventory and high overhead costs.

    3. Sell things that you fix

    Weekend business ideas

    Are you very good at fixing most things? More people are now throwing out a lot of broken stuff because they do not want to bother about having these things fixed. However, there are many more people who cannot afford to buy items because of lack of funds for stuff that could strain their meager budget. Set up a small shop where you could fix broken appliances for example. Some might want to sell them to you instead of getting them fixed. This gives you the opportunity to offer two types of services – fixing broken things and selling things that you have fixed.

    2. Be a business window painter

    Weekend business ideas

    If you have the talent for this type of business, what is there to stop you? You can easily set up your business and invest in paints and brushes. Study your community, find inspiration online and create a portfolio of window painting designs suitable for each type of storefront, environment and building façade. This will give you a unique selling proposition for your local clients. You do not have to cater only to your community. Build a website and let other companies know of your business and expertise.

    1. Share your knowledge

    Weekend business ideas

    If you are good at something or at most things, then why use this to your advantage and build your business around it. You could be a tutor, a part-time teacher or a part-time professional coach, not just in sports but in business as well.

    Starting a business is not that complicated particularly if you take the hints given in this list of top small business ideas for small towns. The most important thing to do is to carefully identify where your interest lie and what you are capable of doing. The next step is to get expert help to get your business off the ground, from capitalization to business set up, marketing and management.



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