Advantages And Disadvantages Of BPO

Ferreira, J., & Prokopets, L. (2009). Does offshoring still make sense? Supply Chain Management Review, 13(1), 20-n/a., pp 1-5, Retrieved from http://search.proquest.com/docview/221135949?accountid=12085

In today’s society, outsourcing has become a very critical and controversial issue to companies and other countries. Outsourcing is known as offshoring as an organization’s use of an outside organization for a broad set of services. As technology continues to grow and advance more, outsourcing becomes more popular. Many American white collar jobs are being taken over by foreign countries around the world. Almost every occupation or career in the United States has some effect of the outsourcing. As a result, many Americans become unemployed and financially challenged; being that outsourcing can increase the United States unemployment rate. Employees who live in the US rather keep jobs in the country to create more opportunities. On the other hand, few stakeholders

The top opportunity identified after completing the T-Box Organizational Productivity for Bridgestone Americas, Inc. is offshore outsourcing. This opportunity would provide alternative options for resources that will lower costs. As a project manager for the IT Project Management Office, we are given budgets for each project that have to be closely monitored. Normally, an offshore resource per hourly rate is lower than a company employee or domestic companies. The lower hourly rate would allow more hours to be worked on the project resulting in increased quality of application or product. In addition, customer satisfaction is achieved while delivering projects under budget. According to Gupta (2009), “offshore outsourcing can lead

Only 5 to 10 percent are using offshoring for complex projects and mission-critical operations. However, this is likely to change.

Because of the internet, now knowledge processed outsourcing could occur. The internet made American businesses realize that workers oversees could do jobs like data entry, billing and accounting for low wages. Today, X-rays and radiology reports can be sent in a second and anyone in the world could analyze it. Financial investment research and paralegal work could happen from across the world. Any subcontractor from around the world could now be used for outsourcing. The internet has created a whole new genre of outsourcing taking more jobs from

Outsourcing, especially offshore outsourcing, is not a new topic, but a continuing controversial global trends for the industry of manufacturing, and information technology. As Corbett said, outsourcing is the practice of transferring non-core competitiveness jobs to other suppliers rather than doing it self. Many experts are arguing that offshore outsourcing will harm the U.S. economy than it will benefit the American people in the long run, while advocates can also list a bunch of benefits over adverse. However, the practice of offshore outsourcing has been going on for decades, and it wasn’t resulting as opponents’ claimed. Instead,

Outsourcing has existed since many years; with the development of technology it’s easier to do business, and communicate between countries in seconds. This process involves hiring a third party to perform certain activities with more efficiency.

This issue facing my organization is outsourcing. Outsourcing, the corporate buzzword of the nineteen-nineties through today, is a popular business approach utilized by companies focused on lowering their cost structure, gain entrance to new markets, and expand and build capabilities. Defined as, the strategic use of outside resources to perform activities traditionally handled by internal staff and resources [Handfleld, R, 2006]. Initially, outsourcing targeted non-critical and non-core activities such as facility maintenance and cleaning and security. Later the industry focus began to include the core processes of manufacturing, logistics, and back office support functions. In my experience, the term outsourcing strikes fear into the minds of employees and managers and represents dollar signs to executives and investors. Open communication during change is critical and to eliminate disconnects and misunderstandings. The objective of this paper is to describe both sides, delve into the communication middle ground, and expose the avoidable hidden costs that exist and provide possible solutions to reduce or avoid these hidden costs in value, human capital, and knowledge.

The business case for outsourcing IT infrastructure most often is anchored in the benefits of gaining expertise external to the enterprise first, despite the commonly-held belief that this strategy is purely for cost reduction. The value of gaining external expertise in critical IT infrastructure processes and

As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.

It is estimated that by 2015 the number of jobs outsourced could be as high as 3.3 million. The practice of outsourcing has helped many companies in the US and Internationally but it has devastated the American Industry. Comparably well paying jobs are not being created fast enough to make up for positions that were sent offshore. With fewer people working less money is available to spend common items and on bills.

There are diversified organizations that seek to update and store data and use it for organizational specializations to attain their strategic goals and objectives. This will help in achieving core competency by selecting best-in-the-world offshore sourcing. Offshore expansion of IT industry aids to activate large amount of quality innovation that can be expensive to operate in-house. A network of IT industries in global scenario builds the production capability to such a strong level that it cater with changing demand by assuring a low-cost approach. Offshore sourcing ensures the minimal time of project cycle. Thus, it interconnects multiple skilled operators, who are working simultaneously from different IT platforms of the world to develop specialized projects. Client can have complete satisfaction, as the project includes different individuals working to frame their tasks. IT offshoring was primarily focused on the output and cost effectiveness agenda, but over time the motif has converted to employing high quality performers, who can operate multiple strategic tasks (Bloch, Boskovic, & Weinberg, 2009). IT companies offer freedom to apply

One of the most important forces of outsourcing is that organizations do not have gain the needed and required sources internally. And they have a difficulty in integrating and attracting expertise, where outsources own capabilities on a global level, modern technologies and other required resources. Also, by outsourcing the cost of keeping employees and consultants for short term is reduced. Furthermore, outsourcers are able to offer better career opportunities for business IT staff if they decide to transit to the outsourcer. As the manager of BP Company viewed the main reason of BP Company outsourcing is that "it has become increasingly apparent that service companies provide us with technical skills and ideas that we could no longer develop inside our own company" (Kremis, 2006).

During the 1980s and 90s, outsourcing organizational activities became the standard for many organizations (Kahai et al., 2011). Outsourcing, as a part of an organization’s overall strategic plan, has been effective in helping achieve organizational goals and objectives (Kahai et al., 2011). Currently, many organizations incorporate outsourcing into the strategic plan, and this trend will probably increase in the future (Heikkila & Heikkila, 2010). Although outsourcing will not solve all of the problems inherent in attempting to achieve competitive advantages and organizational cost-reductions in an organization, the practice is increasingly part of an organization’s overall comprehensive strategy in the business world (Andreff, 2009). While

Offshoring is the practice of relocating business processes to lower cost locations outside the country of origin. This is not a new practice for companies in the United States. Moving business processes to another country to take advantages of lower operating costs and cheap labor seems like a great idea. However, the dilemma for a company is whether the benefits of offshoring outweigh the risks. This dissertation will begin by briefly reviewing the history of offshoring. Next, it will examine the various advantages and disadvantages associated with offshoring. Thirdly, it will explore the growing trends of backshoring and nearshoring in situations where