...that Business Process Outsourcing would have improved Wal-Mart’s profits? Justify your answer. Introduction: Nowadays, outsourcing firms are emerging like mushrooms across the globe. Outsourcing is a journey of two organisations seeking jointly to overcome predictable challenges (Nakkiran S John; Franklin D, 2005). BPO stands for ‘Business Process Outsourcing’ which is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of the business process under strict guidelines regarding requirements and specifications from the outsourcing company (Destination India, 2009). Today anything that can be outsourced gets outsourced and BPO can include the following key functions: administration, finance and accounting, human resources, payment services, sales, marketing and customer care, supply chain management and software development among others. Almost every developing country in the world today has its Business Process Outsourcing companies that not only accommodate the outsourcing needs of the local industry but astonishingly offer business processing services to other foreign countries as well. Wal-Mart is one of the largest companies in America and its reputation is based on its strategies to minimize operating costs and maintain low prices which attract most of its customers. In today’s challenging business environment, many companies are looking for ways to restructure business processes...
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...Outsourcing Teresa McGlown BUS 630 Wendy Achilles 08/27/2012 Table of Contents Introduction 1 Forms of business aspects covered by outsourcing 1 Outsourcing with reference to Hechlinger, J. Article 2 Other articles highlighting the application of new learning with respect to outsourcing 3 Dean Meyer’s Article highlighting the advantages of outsourcing 3 Sholstica’s Article highlighting the disadvantages of outsourcing 6 Present and future application of outsourcing within workplace 6 Conclusion 7 References 8 Outsourcing Introduction In the present dynamic environment, one way the companies can gain competitive edge over their competitors is by taking full advantage of all the business aspects. One of such possible aspect of performing organizational activities in an efficient manner is through the platform of outsourcing that provides a company an opportunity to hire an outside firm having proficiency in a particular field and then getting some of the organizational tasks completed through this hired firm either at a reduced cost or an increased productivity rate. A number of factors (both related to internal and external environment) are considered that helps to decide that whether outsourcing is a right answer for a particular company. The process of outsourcing facilitates learning of a number of aspects that if properly applied within an organization can serve as a competitive element for the company, enabling them to remain a competitive force within...
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...HR OUTSOURCING HR outsourcing is the process of sub-contracting human resources functions to an external supplier. Different HR functions that can be outsourced: One can outsource various HR functions depending upon the expertise required. Recruitment is unarguably the most common functions outsourced. However, it is functions like payroll, leave tracking, record keeping, etc. Recruitment: Outsourcing recruiting makes a lot of sense. The organization will always have the final say in the selection of the candidate, but the screening of resumes, and initial selections can be completely outsourced. Then there are also entrepreneurs who believe that recruitment should never be outsourced to an external party as they cannot fully understand the culture of your organization and will fully understand your requirements. Administration: This includes maintenance of employee master payrolls, tracking of leaves, any kind of employee redressal and grievances, entry and exit process, paying provident fund and life insurance, and so on. These are people- and effort-intensive activities that can be mastered over a period of time. This is the reason why it makes sense to outsource it to a service provider. Strategy: This includes setting up a performance management system, building an employee handbook, and undertaking activities that offer value addition for employees. A number of strategic drivers for outsourcing HR services are: 1. Reduced cost 2. Increased efficiency ...
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...“Outsourcing-Offshore” Outsourcing is said to have emerged a few thousand years ago with the production and sales of food, tools, and other household appliances. As soon as small communities and societies began to form, people with specialized professions began to trade with each other for goods and services. It can be said that each worker was outsourcing some activities to others. Research shows that even in the industrial age, a few thousand years later, very few companies outsourced any of their operations. Companies in the 1800s and 1900s were vertically integrated organizations, taking care of their own production, mining, and manufacturing from raw materials to finished goods as well as then shipping the goods to company owned retail outlets. These companies often handled their own taxes, employed their own lawyers, as well as designed and built their own buildings without outside assistance. This model does not apply to all companies during that time period, but it gives a general idea of the time. The history of outsourcing portrays that as onshore outsourcing continued manufacturing outsourcing of low-tech items such as toys, shoes and apparel goods began to take place. After this manufacturing higher value items like high-tech components and consumer electronics began to appear. In fact outsourcing history demonstrates that manufacturing was the first activity that began to move to offshore destinations in a quest for lower costs. Globalization began during...
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...INTRODUCTION Information Technology (IT) outsourcing is the contracting out of part or all of an organization's IT activities (Duarte & Snyder, 2006). Global Tech Corporation is an Information Technology (IT) outsourcing firm that provides help desk and customer support functions. Global Tech specializes in taking the work that other companies do not have the resources to complete on their own and helps them to get the jobs completed. Product deliverables include software consulting, website design and maintenance, e-mail servers, help desk and customer support functions. The company is headquartered in the United States, and has four branch offices in China, India, Philippines and Ireland. In order for Global Tech Corporation to function profitably all over the world the company must learn what the cultural barriers are in each country they have an office located, what leadership barriers there are and what leadership styles would work best in each country. The following will discuss how Global Tech has overcome cultural barriers, the organizational makeup, leadership styles, and production of the corporation. ORGANIZATIONAL DESCRIPTON When entering the corporate world in the 21st century it is important to realize that we are at an incredibly turbulent part in history. The world is experiencing natural disasters, wars, terrorism, approaching limits on natural resources. It is not an easy time to enter the global landscape and try to be a competitive company; however...
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...Definition of outsourcing 3 2. Functions outsourced by HR 3 3. Advantages of outsourcing HR Functions 4 3.1 Managing and minimising risk 5 3.2 Cost Savings 5 3.3 Efficiency and economies of scale 5 3.4 Professional Expertise 5 3.5 Improved Employee Morale 6 4. Disadvantage 6 4.1 Poor Performance and decline in quality 6 4.2 Distance and lowering moral 6 4.3 Recruitment Problems 6 4.4 Leak of important internal information 6 4.5 Perceived loss of power and control 7 4.6 Increased Direct Costs 7 5. e-HRM 7 5.1 Objective of e-HRM 7 5.2 Advantages of e-HRM 8 5.3 Disadvantages of e-HRM 8 6. Conclusion and Advice to the Client 8 1. Definition of outsourcing The Human Resource department is considered to be one of the highly accredited departments of the organization; these are the people who provide the working resource to the company and keeping the company afloat even in the worst economic downtime. The best way in which the HR can be managed is decided by the HRD. The ways in which the human resource management is done has changed considerably in the recent years. The HR activities and functions can now be delivered, not only by the specialised Human Resource professionals, but also through outsourcing (Ulrich 1996; Tremblay, Party and Lanoi 2008). The HR outsourcing can be defined as the purchasing of the HR functions and services from a third party supplier. HR outsourcing can also be defined as the process of subcontracting a process, such...
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...What is Outsourcing? Outsourcing refers to the way in which companies entrust the processes of their business functions to external vendors (Dinu, 2015). At times, an organization cannot handle all aspects of a business process internally while focusing on their core competencies. There are necessary functions that an organization would prefer to outsource. Once the function is outsourced to the service provider, they will take ownership and risk to manage the function as agreed upon by both parties. According to much of the literature and research on case studies, Figure 1 details the most commonly outsourced activities (Hoecht, & Trott, 2006). IT Outsourcing Legal Outsourcing Content Development Web Design and Maintenance Recruitment Logistics and Distribution Services Manufacturing Technical/Customer Service Human Resources Services Sales and Marketing Finance and Accounting Services Procurement Services Computer Programming Services Tax Compliance Training Administration Transportation of Products Benefits and Compensation Planning Payroll and Human Resource Functions Figure 1: The most commonly outsourced activities. Why Outsource? When an organization is considering outsourcing, they must weigh the efficiency of performing the activity internally versus the external vendor’s efficiency and evaluate the risk associated with the decision. The organization must consider both strategic and operational issues related to the decision to outsource. Greaver (1999)...
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...Recently business are moving across the globe to third world countries to produce their products for half the cost. This has caused a debate amongst American citizens. Many people are against outsourcing, simply because it leads to unemployment increasing in America, yet allows foreign country’s residents to obtain jobs. Outsourcing is usually done by large companies, mostly because it is cheaper to get the job done in another country than it is to have it done here, due to the fact that workers in America are often paid more for the same task than workers in foreign countries, like India. On the contrary, many corporations believe that in the long run, outsourcing can benefit the American economy. That by outsourcing to non-developed or developing countries, we enable them to improve their economies. That by exporting products and services to be made in foreign countries we are lowering the prices of those products and services to be made in foreign countries we are lowering the prices of those products for the American people, and at the same time helping foreign nations. Industries and companies are reaching out across the world. Capgemini, a French IT company has branched out to many different countries over the years. Sodexo, another French company, is a global food service industry, expanded to countries such as the United States, Africa, and other countries. Computer Science Corporation started in the United States and has expanded to nations around the globe. Intercomp...
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...Accenture knowledge management is a public company. They started trading at New York Stock Exchange in July 2001. The firm is consolidated 47 country partnerships into one corporation with a headquarters location in Bermuda. Their services include consulting, alliances, technology, venture capital and outsourcing. Initial success and consistent revenue growth of 17% year after year stalled in year 2002 and 2003. Accenture remained profitable during this period by cutting cost of operations. In 2004, the company achieved revenues of $13.67 billion making it top of the standard and poor 100 in terms of return on invested capital (first). The company increased its focus on outsourcing, particularly “business transformation outsourcing” and “business process outsourcing” rather than only outsourcing “IT services”. Also, it emphasized on creating and developing of intellectual and technology assets to apply in work with clients. Currently, the company’s organizational structure consisted in industry groups which made up the five operating groups, eight capability groups. There were substantial budget pressures to reduce costs during economic downturn which resulted in outsourcing services offshore of some of these groups. The groups used out dated portals to connect to one another and find documents, some major groups used their own portals which was becoming a problem. The CEO Don Vonthournout assigned Tom Barfield as management lead for a new Knowledge exchange project’s development...
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...call centre capital? Investigate the outsourcing of call centre’s to the Philippines INTRODUCTION: Filipinos are excellent in communication and possess a good command of English that is the reason why Philippines are attracting more investor to put their call centers hubs in the country. Though Filipino workers are hardworking and globally competitive there are many factors that should be considered when an investor wants to invest in the Philippines; some factors are the labor cost and low tax. Filipino workers have American culture that influences them with their good communication skills; they provide a high quality service, high skilled worker, and educated worker. With the help of the Philippine government in making good infrastructure and providing a free training. Will this help the Philippines be the new call center capital? Philippines a new call centre capital? The Philippines is now number 1 in the world when it comes to providing voices service, the top provider of technical support is still India because of its cheaper labor. Business processing outsource companies remain optimistic that Philippines can be the new call center capital in the world with the strength that every Filipino workers has it is possible for the country to be the new call center capital in the world. Because of their excellent communication skills and because they possess a good command of English, Filipino workers are considered a very good business processing outsource assets for the...
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...Abstract This paper will discuss what outsourcing is about and the impact of outsourcing information technology to China. It will take a look at the benefits, challenges and risks faced when a company makes the decision to outsource their information technology functions to China. As globalization accelerates and competition intensifies, outsourcing has become a strategic solution for many corporations and governments around the world. More companies are outsourcing their goods and services to other countries. It has become a way for many companies to gain cost savings, increase productivity by outsourcing their information technology goods and services. Outsourcing of information technology services is one area that companies are taking more and more advantage of. Companies that outsource see increase productivity and quality improvement in their information technology services. China is starting to make advancements in their information technology outsourcing services, in the goal of one day being the number leader in this outsourcing area. Outsourcing Information Technology to China The world of outsourcing continues to grow with different goods and services being sent to other countries. Outsourcing of goods and services has been around for some time now. According to Patterson, Gott & King (2011), “IT and BPO offshoring are early manifestations of a larger trend that, in the long run, means that more functions can and will be located outside the countries...
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...| Outsourcing your Privacy | | | 4/20/2014 | Business Law Final | | Perhaps BPO is more of a threat than the NSA, when it comes to Privacy! | Outsourcing your Privacy Business Law Final Webster’s dictionary defines privacy as freedom from unauthorized intrusion. The meaning of what privacy is to an extent is driven by the society and its moral norms. Reasonable expectations of privacy in public places must change as our social environment changes. As moral and social norms change in a society the expectation from an individual towards society changes and thereby the individual’s privacy values. For example, slavery was an accepted practice in the late 19th century; today it’s not in practice. In the current information technology age, when an individual submits his personal information for purchasing merchandise online, it is within his expectation that his personal information be protected by the website. In future with the increasing use of technology in the day to day activities, new issues of privacy will arise making today’s notions of privacy out of date. One such issue is the privacy of personal information in business process outsourcing. Business process outsourcing (BPO) is the process of contracting a specific business task to a third-party service provider. There are two categories of BPO. Back office outsourcing constitutes the outsourcing of internal business functions such as purchasing or billing. Front office outsourcing constitutes the outsourcing...
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...Outsourcing Paper Outsourcing has been defined in many ways. According to one definition, outsourcing is defined as, "... A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally" (Dictionary.com, 2010, para. 1). In this paper I will discuss the rationale and challenges of outsourcing business functions to low-cost countries or firms. Many reasons can be attributed to outsourcing problems but the primary reason is cost. Rationale A strong rationale for outsourcing “…is that organizations have one or more non-core business functions” (Belcourt, 2009, p. 1). Of course, cost savings is a primary reason for outsourcing business functions. For example, in situations involving payroll, studies show outsourcing payroll can result in savings ranging from 10 to 20% more than two years or longer. Outsourcing also is helpful when there is an irregular need for a particular service (Belcourt, 2009). Outsourcing can keep from acquiring a full-time employee. Since employers cannot always “pursue excellence in all areas, many will focus on core competencies, such as customer service or innovation, and outsource secondary functions, such as benefits administration. Studies show that companies that outsource report reducing administrative tasks by more than half and increasing their strategic focus by 40%” (Belcourt, 2009, p. 1). Another outsourcing driver is technology. This can help especially...
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...CHAPTER - 1 INTRODUCTION 1.1 - AIM OF THE DISSERTATION This Dissertation aims at studying the Human Resource Strategies which can be employed to retain skilled employees in Business Process Outsourcing (BPO) organizations particularly in call center organizations in India as well as follow the shift in trends from traditional practices due to high attrition rates and evaluate the effectiveness of these strategies. 1.2 - OBJECTIVES AND RESEARCH QUESTION To Study and Analyze the Possible reasons for high attrition rates in call center organizations. To examine the strategies developed to reduce high attrition rates in call center organizations. and To Evaluate the effectiveness of strategies introduced to reduce attrition rates in call center organizations Taking the Above objectives into consideration the research question is – “What are the strategies used by Human Resource Managers to combat High attrition rates in Call Center Organizations in India?” 1.3 - RATIONALE Business Process Outsourcing industry in India is a source of income multipliers for Indian Economy as well as a source of jobs for unemployed. India has huge unemployed population and the Business Process Outsourcing launched itself at a stage when unemployment problem started having negative impact on the Indian Economy. The Industry generated employment for countless non-technical skilled employees in the organized service sector. Since its inception Call Center Industry has been facing...
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...countries like Poland and Romania are strong spots on the global outsourcing map Globalization & Integration Group Project Table of Contents Abstract 3 Introduction 3 Poland 4 Significant savings costs 5 Ability and quality of resources 5 Low risk location 5 Culture Similarity 6 Investment Climate 6 article 7 Romania 8 Government support and business environment 9 Quality of the language and educational skills 9 Low labor costs 10 Culture 10 Intellectual property security and privacy 10 article 11 Comparison 12 Cost competiveness 12 Resources and skills 13 Economic competitiveness 13 Regulation 13 Corruption perception 14 Legal protection 14 Conclusion 14 References 14 Abstract In this paper, we discuss why are the Eastern European countries like Romania and Poland potential destination for outsourcing. Given an economic condition, Geographical advantage, business environment and quality issue explanation of each country. Both countries are economically competitive in outsourcing market in Eastern Europe, promptly emerging as a favorite destination. Introduction Outsourcing is a practice used externally in order to reduce costs by transferring...
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