The appeal of business process outsourcing is that it therefore attempts to involve a new support services model involving cost effective, salable, efficient services. The growth in demand for process outsourcing has also seen an expansion in the range of services being provided by suppliers. Processes typically outsourced include finance and accounting, procurement, human resources, contact centers, and other administrative functions.

Business process outsourcing often fills human resources (HR) practitioners with fear, but handled properly it can help the HR function become more efficient and strategic. Of all the business-related acronyms that are filtering through to the corporate consciousness, BPO – business process outsourcing – is certainly one that appears to be raising interest. Business process outsourcing, although often seen as the next evolutionary step in IT outsourcing, is also very different from it.

BPO is about delegating the ownership, administration and operation of a process to a specialist third party in order to solve a business problem. And because BPO is about delivering outcomes – higher performing business processes – it aims to raise a client company’s shareholder value.

Business processes within a company can be broken down into three categories:

i) core;

ii) business critical non-core; and

iii) finally non-core, non-critical.

Core processes are seldom outsourced, because they are the very essence of the business and the area that requires the most investment.

Critical and non-critical non-core processes may be suited for outsourcing to a third party supplier who will invest in them on the company’s behalf. Process management has the highest expected growth rate in outsourcing.

Business processing outsourcing is typically the outsourcing of a company’s non-core or back-office business processes. Usually those processes are IT enabled (or should be IT enabled) and hence can be transformed by the use of a new or improved technology platform.

The appeal of business process outsourcing is that it therefore attempts to involve a new support services model involving cost effective, scalable, efficient services. The growth in demand for process outsourcing has also seen an expansion in the range of services being provided by suppliers. Processes typically outsourced include finance and accounting, procurement, human resources, and real estate.


By Anonymous
http://ezinearticles.com/?Why-CEOs-Are-Not-Afraid-to-Process-Business-Outsourcing?—What-is-in-it-For-Them?&id=3881130
Business process modelling