Back Office Outsourcing : An Essential Driver Of Growth For Banks?

However, there needs to be serious analyses done to determine the correct action to take. Financially, many outsourcing deals make sense. Furthermore, it gives businesses an opportunity to have business segments performed by professionals or in a much more efficient fashion; if the proper workforce or operational procedures are not in place. In a small business, I believe that outsourcing is a great way to have complex or strategic roles filled within an organization. Additionally, the customer base is smaller and allows the small business to still interact intimately with each customer. However, for a large business, outsourcing may create holes within the organization that makes them vulnerable. Specifically thinking about customer service roles, Vitthal Gore (2013) talks about the emergence of call center or Business Process Outsourcing (BPO). As the 21st century begins to impact the globe, many countries are being targeted for their people as the new-age workforce (Gore, 2013). Additionally, Gore notes as more people become competent in the English language, the easier it is for a business to tap into the untouched workforces of the East. While many times cheaper for companies to outsource their customer-service segments, many Americans expect a high-level of service from their provider, and as such, some of those quality controls may be lost in a total outsourcing (Gore,

Outsourcing has grown dramatically in the past few years due to the flexibility offered new information technology. Within the next five years it is estimated that $365 billon or 15 percent of financial service industry current cost will be moved off shore. (Federal Deposit Insurance Corpartion, 2013)

Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service

25. What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?

Summary: The above article talks about how IT outsourcing is the most cost-effective way for companies to hire qualified individuals for specific jobs without having to commit to the significant cost or maintaining a year round in house team. IT outsourcing is

The need of the modern business to look outside of the doors of the company to improve profit margins has become a necessity in today’s market. The advent of technology and crossing of borders have expanded this search for efficiencies to other countries.

Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the

“Outsourcing worked. Using external service providers to cut costs and improve performance has become truly commonplace. As much as the popular press has focused on the debate over the benefits of

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 purpose of this paper is to highlight an area in a financial organization that may be outsourced and prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process that I’ve decided to outsource. This analysis will justify my decision for the business process outsourced by the followings:

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.

Outsourcing is the contracting out of an internal business process to a third party organization. The term "outsourcing" became popular in the United States near the turn of the 21st century.(6) Outsourcing is big business today even for small businesses. Like every business decision we are faced with the advantages as well as the disadvantages of relocating part or all of a business. Outsourcing is one of the fastest growing trends in business as large-scale organizations have latched onto outsourcing due to the almost immediate savings and quality improvement. (1)

In a world of increasing automation, companies and organizations with massive amounts of data to manage often find themselves outsourcing their databases. This particular arrangement depends on many factors, such as trustworthiness and reputation. Each business requires different coverage from the outsource provider as well as different costs requirements. Many providers offer cloud based services, in house managed services, near and offshore and outcome-based consulting. Many companies do not have the means or the technical know-how to store, maintain, manage, and safeguard their information. This leads to many companies choosing to outsource their databases as a solution, which is often a financially sound decision. “The external service

Business process outsourcing is a new management strategy, which encompasses transfers of an organisation’s internal functions to a third party. In essence, it encompasses entrusting and ensuring a third party with company functions. The third party executes the function and meets the expectations of the company (Kozweska 2004). Company objectives primarily dictate the above expectations. A company transfers business tasks and processes to an external provider, a specialist in a particular field, to enhance its profitability and hence return of investment to its shareholders. Business process outsourcing also provides a basis for establishment long-term, mutually beneficial relationship between the company and the outsourced provider.

XYZ Marketing Company strives to provide excellent services to their clients. These services include e-commerce and marketing solutions. With the services provided, XYZ Marketing Company can gain new clients, retain their current clients, and also help their clients with a new strategy for marketing services. XYZ Marketing Company handles hundreds of e-commerce websites for clients on a daily basis. By doing so, this helps implement client market targeting and creates new strategies to increase revenue within the company. Client innovation solutions are created by XYZ Marketing Company, which are tailored specifically for each client and their needs. By having specific solutions for each client, this creates high satisfaction and keeps company’s trust and loyalty. XYZ Marketing Company has many clients all over the world. By expanding their business globally, it has kept them in business for over 25 years. Over the last five years, XYZ Marketing Company has expanded their services. These services include: Client Services, Finance, Business Strategies, Human Resources, and the Legal Department.