| Business process outsourcing has recently become | | | | internet companies. |
| much more of a pronounced trend and is evident in a | | | | Strategic sourcing, procurement, information |
| wide range of companies of all sizes. The reasons for | | | | technologies, inventory management, marketing and |
| turning to the use of outsourced services vary greatly | | | | advertising, logistics, distribution, customer service |
| from one company to another. Some businesses are | | | | through outsourced call centers, and subcontracted |
| looking to achieve economies of scale, while other | | | | manufacturing functions are just a few of the |
| organizations would like to access things, such as a | | | | additional business processes that are outsourced on |
| complete technology infrastructure, without having to | | | | a regular basis by many organizations. Often |
| build their own. | | | | companies will start by outsourcing just one function, |
| For other companies, their primary motivation in utilizing | | | | but find the practice to be so beneficial that they |
| process outsourcing is to attain quick access to | | | | expand to outsource additional functions as they |
| specific expertise and use the experiences and | | | | experience growth or as part of an expansion |
| strengths of the company that is providing the | | | | strategy. |
| outsourced projects and services. This allows each | | | | When arranging for strategic business process |
| company involved in a large-scale outsourcing project | | | | outsourcing, finding the right outsourcing partners is of |
| to focus on their own strengths and capabilities, while | | | | paramount importance. The companies that provide |
| outsourcing their weaknesses to another company | | | | various outsourcing services must be able to |
| that excels in that particular function. Many times, | | | | effectively demonstrate that they have the required |
| unique business alliances form using this strategy and | | | | expertise and methodology in place. They should also |
| sometimes a pair of companies will outsource various | | | | have a strong positive reputation and should be willing |
| services to one another. | | | | to provide references that can attest to their |
| There is no lack of examples of the ways in which | | | | capabilities. |
| companies have made use of business process | | | | In addition, it is a prudent practice to look for the |
| outsourcing over the years. A vary common example | | | | value-added services that are offered in conjunction |
| is corporations making use of travel agencies to take | | | | with the outsourcing services. For example, in situations |
| care of all the details of their business travel needs. | | | | when a company wishes to outsource inventory |
| Relying on travel agencies not only puts the burden of | | | | management, or are looking for a company to |
| the details on the agency, but often results in savings | | | | manage supplier networks for them, outsourcing the |
| because of the expertise and connections that these | | | | entire process involved can be invaluable for smooth |
| agencies have in procuring the best prices on business | | | | project management from beginning to end. |
| travel. | | | | Another aspect that should be remembered is that an |
| Another common example is the outsourced handling | | | | organization cannot improve what is not measured. In |
| of employee benefits and payroll services, and is also | | | | order for business process outsourcing to be viable, |
| very common when it comes to accounting functions. | | | | strict guidelines must be put into place in the |
| In the midst of the internet boom, many such | | | | outsourcing contract, in terms of expected service |
| outsourcing service providers developed packages | | | | delivery and performance levels. |
| specifically designed to meet the needs of the start-up | | | | |