WHAT IS BUSINESS PROCESS OUTSOURCING (BPO)?
BPO is the delegation of business processes, often labour- or IT-intensive, to a specialist external provider who owns and manages the processes based on defined and measurable performance metrics.
BPO is a major growth sector, both in Australia and internationally, with Gartner (leading IT researcher and advisor) estimating the global BPO market to be worth more than $US173 billion in 2007.
So far, BPO has typically encompassed back office functions such as HR, finance and contact centers, or vertical specializations such as processing insurance claims or banking payments. Gartner says that more than 30-60% of back office functions are suitable for BPO, with the big question for most organizations now being “when” rather than “if”.
WHY YOU SHOULD THINK ABOUT BPO IN YOUR ORGANISATION?
BPO allows organizations to “stick to their knitting” and not be distracted from core business by peripheral or back office functions.
BPO offers enormous potential for cost savings and improved service standards. This is because the service provider, operating in a competitive market, can achieve:
III Economies of scale
III Optimum use of technologies
III Efficient use of expert staff
not available to organizations where the activities are not core business.
BPO shares risk, because the provider is responsible for the successful delivery of the complete business process and is paid on outcomes.
IT industry models such as ASP (application service provider) and infrastructure outsourcing, by contrast, are inputs to the business process and are paid for on that basis, irrespective of the extent to which they do or do not contribute to the business outcomes.
BPO also offers agility and flexibility to deal with peak or intermittent workloads such as campaigns or promotions.
For government managers, BPO breaks through the perennial problem of doing more with less. Because BPO tests the market, managers can be sure they are getting best value for money and can budget with confidence on known costs
HOW ICONTACT CAN HELP YOU
iContact capabilities can be readily deployed for a wide range of client contact and business activities. iContact Australia also offers packaged BPO solutions for:
III icontact Communication Delivery Service
III Publication or Forms Ordering
Download our free White Paper Outsourcing Data Capture Processes – How using a specialist to capture your business data will save you time, money and risk of embarrassment
WHY IS OUTSOURCING NON-CORE BUSINESS MORE COST EFFECTIVE THAN DOING IT YOURSELF?
