BPO Business Process Outsourcing.ppt

BPO: Business Process Outsourcing Leanna Dertinger, Jana Earnshaw, Mitsuru Kajio, Jesse McShane Simon Seid Terminology Outsourcing Offshoring BPO ITO Fragmentation History of BPO World War II Increased international trade 1960s – 1980s Importing turns to outsourcing 1990s – Present Services now outsourced BPO begins HP Goes The Distance For PG Corporate Culture Brand Finance and Accounting Bangalore Mumbai, India Global Customers w/ Local Support Core Competencies cut Defects Global Accounts Payable Processing BPO Advantages Productivity Improvements Cost Savings Improved HR Focus on Core Business Competency Increased Capability Benefits BPO Disadvantages Recent Studies Knowledge Disappears and is Transferred to the Outsourcing Partner Poor Quality Control Restoring Operations is Complicated Lack of Loyal Employees Reduction in Strategic Alignment Video Why BPO in India? Language Education Quality - Communication - No pirated products If Chinese Government Policy changes, what will happen? - Turning point will be by 2010 Comparison: India versus China India Educational System Cost Advantage Time/Distance Advantage English proficiency Government Support Quality Labor Pool China Educational System Cost Advantage Time/Distance Advantage Close to Japan Matching Process to Market India Development of software Call center IBM China Manufacturing of components Japanese IT Companies Source: BusinessWeek, The Future of Outsourcing Hot Players in Outsourcing Source: BusinessWeek, The Future of Outsourcing 5 Managerial Steps That Pay Off Go Offshore for the right reasons Shifting a broken process overseas may not fix it Choose your model carefully Could cost more…..(I’ll fix this part) Get your people on board Employees and middle managers can make the bold move happen….or stop you in your tracks 5 Managerial Steps That Pay Off Be prepared to invest time and effort Often what is lacking in offshore partners is a lot of deep process knowledge Trea