Business Process Outsourcing Is A New Management Strategy

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 is that a product or service provided by outside vendors which but was previously provided internally or that could be provided internally(Pearlson, 2001).It is an effective approach for information system implement in a business organization but a risky one.

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 vendors are investing in their employees by various training programs on different technologies. This gives a chance for the vendor to provide the outsourcing services to a company with the help of the well trained employees who are ready to work on the projects. Before outsourcing some of its products and services to a third part vendor, the company has to analyze all the factors that might result from the outsourcing decision, the advantages and disadvantages of the company both in short term and long term due to outsourcing. According to Aubuchon, outsourcing some of its products can be a good thing for a company and the judgment to outsource the services must not only based on the cost factor, but the company has to take all other significant factors into consideration (Aubuchon, 2014).

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

The origins of many outsourcing endeavors begin as part of a strategic planning session during a period of lean years for a company or anticipation of a prolonged impending down-cycle. This is a time-period when the organization does not have a viable competitive product to offer in the market or the

Business outsourcing media is a solution through software houses which is consultation with the whole business process solution as a need which minimizes cost and provides services for you. See to it

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).

Outsourcing can provide businesses with flexible, low cost solutions to staffing problems. However, it can also present challenges and complexities, which is why our expert practitioners advise clients seeking to pursue outsourcing arrangements. We have advised a number of companies on the outsourcing of key parts of their businesses, including the outsourcing of IT and other business functions.

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

A typical example would be the evolution of ERP function to improve financial reporting and transaction processing. Organizations have accepted this IT solution because it helps strengthen several business processes and provide opportunities for growth. However, implementing ERP solutions are somewhat demanding and time consuming, implementation may take several months before completion. Although outsourcing may pose as a best risk-mitigation approach to business solutions, there are also many challenges associated with outsourcing IT solutions. It is critical that before organizations make decisions on whether to outsource a section of their business, they understand the implications such as risks and benefits before going into contracts. The purpose of this paper is to describe outsourcing as it relates to IT solutions. Following the research questions, a background that discusses outsourcing is presented which addresses reasons for outsourcing IT solutions, benefits involved in outsourcing, risks involved in outsourcing IT projects and best practices of outsourcing ERP solutions. Also, a section of this paper discusses outsourcing as it relates to enterprise resource planning (ERP), this is because ERP is considered a big player in IT solutions provision, which have been adopted and implemented in their various IT infrastructure.

Outsourcing is a utilization concept it has been implemented in business process and accounting. It is determined as the transfer of an internal service function to an external vendor.

Moving some of your organization's functions to and to an outside service provider(s) is a business strategy commonly in practice today. Organizations now outsource IT Solutions for convenience. Should you only focus on the "convenience" factor here? Yes, outsourcing IT Solutions to an external service provider comes with many benefits. Anyway, nothing in this world is perfect. I mean, we should also focus on the downside of outsourcing in detail here. So, if you are a business owner who plans to outsource; you will benefit from reading this article. Let's get started!

There are a variety of factors that outline the significance of outsourcing and its rapid growth over the years. Firstly, there has been an “increased desire on the part of organisations to focus efforts on core activities, which are the source of competitive advantage” (Wilton, 2011). This allows the organisation to invest all efforts

To understand Mukherjee’s Case study of BPO as an international strategy of outsourcing, context and requirement need to be realised. Offshore outsourcing, regardless of the macro or micro economics of the existing company, is historically conducted to gain knowledge and cost effective method within the business operation processes (Bunyaratavej, Doh, Hahn, Lewin, Massini 2011), ensuring business operation efficiency within the global economy (Lewin and Couto 2007). Yet it wasn’t until the late 20 the century, research and case studies perspectives involving different stakeholders primarily business industries (Corbett, 2004) and institutions (Drezner, 2004) that caused controversy. In principle, BPO as an outsourcing activity is a phenomena of procuring cost –effective operation process resource transnationally (Doh, Bunyaratavej, & Hahn, 2009), especially unique resources such as skilled labour, in order to reduce cost (Smith, Mitra, & Narasimhan, 1998), allowing effective appraisal of critical activities of supply chain (ed. Merchant & Verbeke 2012) whilst resolving potential bottleneck operations by decreasing non-critical activities for resource allocation. A 2004 industry presentation conducted for IVEY faculty found Indian