Business Process Outsourcing Essay

Today most of the companies wants cost cutting in their business. Nowadays outsourcing helps to achieve such goals. According to the internet, (www.flatworldsolutions.com), outsourcing can be to as the allocation of specific business processes to a specialist external service provider. Outsourcing is an arrangement in which one company provide services for another company that missing or don't have a specialist in the certain area of expertise. Most of the times, an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks.

Specifically, companies are transferring these services overseas as in the case of call and help center services or companies are ordering manufacturing supplies from overseas at a much cheaper price than they could obtain them inside the U.S. Outsourcing is a term that is often used interchangeably with off shoring (Bhagwati, Panagariya, & Srinivasan, 2004).

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

Outsourcing can be a means to perform the core functions of an organization effectively by having more time focused on the activities critical to the delivery of services to customer. The non-core activities are performed by the leaders in that area which will help to achieve better efficiencies. Outsourcing can substantially lower costs, help to access better technology and use innovative ideas etc.(Robert,2001). The advantages of outsourcing are: Cost savings:

One of the biggest impacts of globalization has been to IT (Information Technology) and BPO (Business Process Outsourcing) sector. These two sectors have progressed at never before pace. Key reasons for this is easy and cheap availibilty of skilled workforce with

Job outsourcing is the shifting of a business from one country to another. Companies may choose to outsource or offshore for a number of reasons, perhaps they are trying to save money on taxes or increase productivity in the company.

Initially, the purpose for offshoring was due to producers wanting to lower fixed costs and also seeking lower waged workers. By moving job duties abroad, producers were also able to avoid unionized workers (Gupta & Sao, 2009). In recent years, offshoring has also become popular in higher waged jobs such as software development. Outsourcing is very similar to offshoring, where a firm purchases inputs or services from another firm, but the firm is also located in the United States (Harrison & McMillan, 2006). A staffing agency is an example of outsourcing. A company is assigned by a client, and employees of the staffing company work directly with the employees of the client (Houseman, 2007).

In an increasingly globalize society, it is nothing new to hear about product development and assembly going abroad. Factory jobs have been moved to other nations for decades, and more recently, customer call centers are being relocated to foreign nations. With the current downturn in the economy, people are looking to at this situation in an increasingly negative way. Not all work that moved abroad ended in satisfaction, yet the trend appears to be spreading to new jobs and industries. With the growing population of college educated in foreign nations, software development jobs are shipping overseas. With many incentives associated with outsourcing to various countries versus keeping jobs in the country,

Business development happens on the grounds that assets are arranged for to be utilized to enhance the organization's items or administrations. John Miller composes that the only difference between American workers and offshore workers is that the offshore workers get paid less (Miller). In the event that a business can spare cash by utilizing seaward outsourcing then it is gainful to do as such on the grounds that it prompts to business development. Like Miller, others may state that all organizations pick up from seaward outsourcing are work reserve funds. Notwithstanding, work investment funds is a long way from the main way that organizations advantage from seaward outsourcing. Pete Engardio, Michael Arndt, and Dean Foust assert that by utilizing seaward outsourcing organizations are expanding in regions of value, profitability, effectiveness, and benefit (Arndt, Engardio, Foust). This is imperative since it urges the shopper to continue purchasing those organizations items or administrations. Business development is an imperative impact of seaward outsourcing, in light of the fact that it realizes change in business work and gives less expensive and better items or administrations to the

offshore outsourcing is when you give jobs to other countries because wages are lower.foe example Nike and Jordan both use offshore outsourcing to make their products. one pro would be that it frees up time for more important task to be done.second it allows growth and development in other areas for the chance at making more money for the company. third due to the low wages in other countries it allows products to be more affordable.

Offshoring is the relocation, by a company, of a business process from one country to

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.

Green, Aaron. (2007, September 17). “Part 1: Offshoring basics: definitions, benefits, and challenges.” Retrieved from www.boston.com/jobs/on_staffing/091707.shtml

The global economic downturn has impacted jobs outsourcing in the BPO industry as it has helped to be one of the largest job creators in India. Due to this, many companies had to increase their operations output and therefore employ more and more people to keep up with the expanding trend. One of the major impacts, being growth and maturity, had an effect on the BPO industry and contributed to the outsourcing companies and continued growth of the industry. The IT and BPO outsourcing boom created a huge impact in the Indian

How has the Economic downturn, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the BPO Industry?