|
Why
Outsource?
| Over
the last few years,
business process outsourcing
has changed the way
the world does business,
and this trend is only
likely to accelerate:
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Business
Process Outsourcing
is now the fastest growing
segment within IT services.
By 2007, that offshore
BPO will account for
14% of the total BPO
market, compared with
only 1% in 2003. (Gartner) |
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The
global market for outsourcing
is estimated to grow
at an annual rate of
7 percent to 1.2 trillion
dollars by 2007. (IDC) |
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73 %
of U.S. executives interviewed
said their companies
presently outsource
one or more business
processes to external
service providers (Price
Waterhouse Coopers)
|
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84% of
large company CEOs are
satisfied with their
outsourcing experience
(Yankelovich) |
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Market
perception has shifted
from outsourcing as
a way for companies
to meet short term financial
objectives to a technique
for strong companies
to improve competitive
positions (Gartner Group) |
Outsourcing
is a strategic tool that
can have a powerful impact
on your company's growth
and financial stability.
Business experts agree that
outsourcing is essential
for a company to prosper
in the 21st century.
Would your
organization benefit from
having a technology and
skills advantage over your
competition whilst at the
same time reducing development
schedules? Possibly you
have a product to develop
and you've got to get it
to market before your competitor
does. Perhaps you just wish
to enhance your business
without capital investment
in software development.
Business
Process Outsourcing (BPO)
is the delegation of one
or more IT-intensive business
processes to an external
provider that in turn owns
administers and manages
the selected process based
on defined and measurable
performance criteria.
BPO has proven
to be an invaluable tool
in reducing operating costs
and boosting profit margins
while maintaining a high
quality of customer support
in a seamless manner. The
model is completely scalable
and can allow companies
in any vertical to fine
tune resource allocation
as business conditions change.
| The
common factors that
motivate companies to
outsource business processes
are: |
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Factor Cost Leveraging
|
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Superior
Skill Sets and Job Execution
|
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Economies
of Scale |
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Business
Risk Mitigation |
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Efficiency
Improvement |
Availability
of a highly qualified talent
pool and faster adoption
of well-defined business
processes leads to higher
productivity gains without
compromising on quality.
So far larger
companies in verticals like
Insurance, Credit Cards,
Pharmaceuticals, Airlines,
and Telecom etc. were the
ones to benefit from BPO.
However, as consumers in
every industry demand cheaper
goods yet better service,
outsourcing is becoming
a desperate need for mid-size
and smaller companies too.
• Source: Gartner
Definition
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