Advantages And Disadvantages Of BPO

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The result of incredible improvements which has taken palace in communication infrastructure and significant cost reduction of global telecommunication costs all over the globe due to massive penetration and development of this industry , offshoring and outsourcing have scaled new heights (Blinder, 2006; Levy Business Models of BPO In a study which got widely cited too, Grover (1996) identified three categories of target outcomes from outsourcing namely (i) economic (cost savings) ,(ii) technological and (iii) strategic. While these indicators being very truly valid alone is not sufficient enough unless otherwise inherently combined to exist with a multi-stakeholder perspective to result in offering enduring satisfaction levels to the…show more content…
In the captive model choice , internal contracting is made more simpler and less risky, the means deployed to capture and leverage knowledge gained in the offshore operation is lot more easier and secured in line with security and confidentiality concerns (Carmel and Agarwal 2002).Hence all possible risks of data security and integrity can be mitigated. A great model for non-core critical processes and in the recent times certain core non-critical processes are also found their way in this…show more content…
Cullen (2005) expressed that organisations invariably always face an inestimable number of choices which is a source of constant conflict. Other authors while referring specifically to BPO, describe it as a dizzying set of evolving choices around such matters related to sourcing locations, various choices in engagement models, types of service offerings by vendors (Lacity, Willcocks and Rottman, 2008). This model inturn comprehensively emphasises on the most likelihood of changes over time reinstating the compelling need for an active BPO lifecycle management asking for a realistic foundation for offshore any BPO strategy design. To throw more light on this aspect , there are complex trends existing towards any offshore sourcing strategy in terms of choosing higher skilled and it would be tremendously difficult to codify business processes .Levina and Su, 2008 reminds us that organisations are likely to develop a BPO strategy that involves formal controls around transfer of client-centric knowledge. This category of BPO requires for its success that client organisations and their outsourcing suppliers (which may include an offshore captive centers also) to develop deep trust, effcicient and effective collaborations which makes the investment jointly in knowledge management by both the parties(Lee, Huynh
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