This case study allows you to choose the business process that will be outsourced. You must first decide on the company, and if you use a real one, please do not reveal any names or trade secrets. This may also be a fictitious organization if you choose to use one.…
References: Halvey, J. K., & Murphy Melby, B. (2007). Business process outsourcing: Process, strategies, and contracts (2nd ed.). Hoboken, NJ: John Wiley & Sons, Inc.…
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 core competencies, highly motivated workforce, and Information System performance problems. Disadvantages include loss of jobs and its effects, hidden costs that are often not calculated security and confidentiality issues, cultural barriers, and lack of control over the supplier. Companies need to effectively research for to be successful in an outsourcing relationship because outsourcing failures are very costly and are difficult to reverse. Outsourcing is a now a popular strategy for many organizations as the worldwide market for computing services are projected to grow yearly. In the future, new outsourcing destinations such as Eastern Europe are expected to pop up. It is essential to carefully weigh both the advantages and disadvantages before heading into an outsourcing relationship with another party.…
The pros and cons of outsourcing varies by industry, size of organization, organizational structure, and many other components. The pros and cons are highlighted and the fall of Satyam to encompass a full range of accounting aspects. All size organizations outsource a portion of his or her business. Therefore, taking time to reflect on the points identified in this paper may enlighten or create ideas for consideration regarding outsourcing.…
References: Business Process Outsourcing, BPO and IT Outsourcing from Affiliated Computer Services | ACS. (n.d.). Retrieved January 19, 2012, from http://www.acs-inc.com…
BPO, Inc. is a professional service organization that offers clients a range of services from risk management and insurance to management consulting. The company has grown and profited from the developing trend in the 90’s and 2000’s of companies outsourcing business processes, such as human resources and claims processing. Presently, BPO has launched a six sigma initiative to identify areas for process improvement and financial savings in the Human Resource Outsourcing department. Concurrently, one of BPO’s clients has shared frustrations with BPO’s services, is recommending an audit and threatening to leave BPO.…
In 1973, a monumental shift was prevailing where U.S. companies were sending low skilled jobs within the manufacturing industry to offshore countries to reduce labor cost while maximizing profits. The effect of the jobless manufacturing work force was a shift of those laborers to focus on and perfect the service industry of what it is today (Koch 1). During the high tech recessions of the late 1990s and a nominal expansion of the present time, the Information Technology industry, an industry which through continuous innovations enabled the companies and corporations of America to become more efficient and productive, is also facing the outsourcing similarity with manufacturing. While outsourcing manufacturing jobs offshore requires movement of raw materials and building new factories, Information Technology jobs could be outsourced much quicker than manufacturing jobs, as the majority of its roles and responsibilities are mobile. Overseas outsourcing of IT jobs has quickly become a controversial national issue. Outsourcing involves far more complicated advantages and disadvantages than the debaters on either side are willing to admit (Weidenbaum).…
As 2004 began Jane Harding who was the senior vice president for Human Resources in the Global Services Division (GSD) of Global Information Systems, Inc. (GIS) was considering an offshore proposal to shift 3,000 jobs from United States to China, India and Brazil. These were highly compensated job positions. GSD makes up almost half of GIS its earnings in 2003 accounted for $90 billion. A major portion of GSD’s business came from customers outsourcing their business process needs. GSD started to look into alternative ways to cut out costs and improve performance by “offshoring” certain activities in order to present the most appealing value proposition to the potential customers (Offshoring at Global Information Systems, Inc).…
Outsourcing is often undertaken to provide enterprises a competitive advantage by delegating business process to external agencies and realizing the benefits of low labor, better quality and improved innovation. While this provides a good picture of the fair side of the coin, most managers however need to grope with the possible shortcoming of the process and the corresponding impact on the company’s core processes. To best analyze the opportunities presented it is essential to reflect upon the advantages vis-à-vis the disadvantages of outsourcing. The pros of outsourcing…
Outsourcing has been practice for decades, it happens when companies or business contract a third party, someone outside the business, to produce goods or provide services. Outsourcing can be local, within the same country or offshore, outside the country. Some of the job areas companies outsource are Accounting, Customer Services, Human Resources, Information and Technology and Payroll. Outsourcing supporters affirm that this activity provides substantial cost savings to businesses, through paying less to others do their job, at the same time they can lower prices of goods and services. Although outsourcing brings benefits to a company, this activity may limit the quality of products and the availability of…
Oshri, I., Kotlarsky, J., &Willcocks, L. P. (2011).The handbook of global outsourcing and offshoring.UK: Palgrave Macmillan.…
The trend of outsourcing is becoming increasingly popular as more companies face tighter budget constraints. The decline of the economy has made much company’s look for a competitive edge by for off shoring workers to cut costs. When examining outsourcing there are several key aspects to look at. There are both internal and external pressures that encourage companies to look to outsourcing some of their resources. The outsourcing these company’s use has both positive and negative effects on the organization, stockholders, and employees that are a part of it. When a company chooses to outsource there are long term effects that fall on the areas outside of the company such as the economy, society, and political issues.…
In this report, my experiences of designing, planning and managing an outsourcing project on an online outsourcing marketplaces Freelancer will be summarized. Modified version of Cullen, Seddon, and Willcocks outsourcing lifecycle model and some other academic theories were used to structure and guide the outsourcing processes. The objective of this project is to evaluate the feasibility of these theories in managing real-world outsourcing project. Moreover, it provides me an opportunity to gain more practical experience in project planning and management, and have a deeper understanding of the process of outsourcing.…
Philippines is not a dominant player in what Friedman calls a flat world, but it is fast catching up. In recent years, it has become the destination of choice for outsourcing due to the large pool of trainable and highly skilled English-speaking labor force it offers, as well as the reduced cost of operations. Sykes Enterprises, Convergys Corp.,…
Most of the employees in the BPO industry are youngsters who lie in the age group of 20-35 years. Many of them used to be in college or graduate pass outs that use to join a BPO for part time earning and to cover their sundry expenses. These people generally are apathetic about the company’s culture and often create nuisances which disrupt the very decorum of the company. Some of the key outcomes of this behaviour are:…