Strategies for Business Process Outsourcing
Strategies for business process outsourcing: An analysis of alternatives, opportunities and risks
Author:
Subrata Chakrabarty
Electronic Business: Concepts, Methodologies, Tools and Applications, vol. 1, no. ch020, pp. 290312, 2009
290
Kindlv include citation for references:
Chakrabarty, S. (2009). Strategies for Business Process Outsourcing: An Analysis of Alternatives, Opportunities, and Risks. In I. Lee (Ed.), Electronic Business: Concepts, Methodologies, Tools, and Applications (pp. 290-312). Hershey, PA: Information Science Reference. doi:1OA018/978-1-60566-056-1.ch020
Chapter 1 .20
Strategies for Business Process Outsourcing:
An Analysis of Alternatives, o p port u nities, and R is k s
Subrata Cbakrabarty Texas A&M University, USA
ABSTRACT
This chapter provides a comprehensive overview of business process outsourcing (BPO) strategies and analyzes related issues. The discussions in this chapter can serve as an aid to decision makers who face the great dilemma of whether to insource or outsource a process, and additionally how to handle outsourcing to offshore locations. While business processes themselves are activities that need to be performed ef. ciently, outsourcing them is essentially a strategic decision that can ultimately impact the competitiveness ofthe client firm. This chapter explores the risks and oppor tunities associated with the numerous strategies related to outsourcing and offshoring altematives, business process migration, contracting and alli ance building, the role of the vendor, the nature of the relationship, multiclient or multivendor relationships, infusing maturity and ushering
transformations in business processes, locating required expertise and quantity of workers, and also utilizing on-demand software services from application service providers.
INTRODUCTION
In business process outsourcing(BPO), a client's business process is performed by a vendor. Certain business processes of the client
Author:
Subrata Chakrabarty
Electronic Business: Concepts, Methodologies, Tools and Applications, vol. 1, no. ch020, pp. 290312, 2009
290
Kindlv include citation for references:
Chakrabarty, S. (2009). Strategies for Business Process Outsourcing: An Analysis of Alternatives, Opportunities, and Risks. In I. Lee (Ed.), Electronic Business: Concepts, Methodologies, Tools, and Applications (pp. 290-312). Hershey, PA: Information Science Reference. doi:1OA018/978-1-60566-056-1.ch020
Chapter 1 .20
Strategies for Business Process Outsourcing:
An Analysis of Alternatives, o p port u nities, and R is k s
Subrata Cbakrabarty Texas A&M University, USA
ABSTRACT
This chapter provides a comprehensive overview of business process outsourcing (BPO) strategies and analyzes related issues. The discussions in this chapter can serve as an aid to decision makers who face the great dilemma of whether to insource or outsource a process, and additionally how to handle outsourcing to offshore locations. While business processes themselves are activities that need to be performed ef. ciently, outsourcing them is essentially a strategic decision that can ultimately impact the competitiveness ofthe client firm. This chapter explores the risks and oppor tunities associated with the numerous strategies related to outsourcing and offshoring altematives, business process migration, contracting and alli ance building, the role of the vendor, the nature of the relationship, multiclient or multivendor relationships, infusing maturity and ushering
transformations in business processes, locating required expertise and quantity of workers, and also utilizing on-demand software services from application service providers.
INTRODUCTION
In business process outsourcing(BPO), a client's business process is performed by a vendor. Certain business processes of the client