Preview

The Impact of Globalization on Business Process Outsourcing (Bpo)

Satisfactory Essays
Open Document
Open Document
298 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Globalization on Business Process Outsourcing (Bpo)
The Impact of Globalization on Business Process Outsourcing (BPO)

Business Process Outsourcing, also known by the acronym BPO, continues to be a growth industry in 2010. As BPO evolves, improves, and provides greater value, more companies and organizations will find it necessary to embrace this trend in order to be competitive. For the purposes of this analysis, Business Process Outsourcing (BPO) will be defined as the process of contracting specific business tasks to a third-party service provider (SearchCIO.com)
Globalization has and will continue to have a major impact on the BPO industry. The following analysis will discuss three globalization drivers and the potential impact to BPO over the next five to ten years. The three globalization drivers are: * Technology * Labor Cost * Regulations

For the purposes of this analysis, the following operational definition will be used when referencing Business Process Outsourcing Industry Overview
History

Current BPO industry

Future
The security of outsourcing is relevant to an increasing number of corporations. NelsonHall 's study, "Global BPO Market Forecast: 2008-2012," predicts that business process outsourcing (BPO) will generate $450 billion in revenue globally by 2012. The financial services and government sectors are expected to continue to be the leading sectors for BPO services, followed by defense, healthcare, pharmaceutical, and transportation.

Technology
Communications

Labor Cost
Onshore

Offshore

Regulations
Record Retention

Summary
History

References
SearchCIO.com

Desai, R., & McGee, R.. (2010). Is Outsourced Data Secure? The CPA Journal, 80(1), 56-59. Retrieved March 25, 2010, from ABI/INFORM Global. (Document ID: 1947176081).

Appendix
Each Appendix appears on its own page.

Footnotes
1Complete APA style formatting information may be found in the Publication Manual.

Table 1
Type the table text here in italics; start a


References: SearchCIO.com Desai, R., & McGee, R.. (2010)
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Problems Week 5 manj 340
    • 421 Words
    • 2 Pages

    Problems Week 5 manj 340

    An analysis on which business processes you would outsource versus those that you would maintain in-house. You need to justify your decision for each business process maintained in-house or outsourced (e.g., accounting, editorial, photography, publishing, distribution, printing, layout, advertising, editing, articles, etc.).…

    • 421 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Proj410 Case Study 2
    • 2722 Words
    • 11 Pages

    Proj410 Case Study 2

    GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes:…

    • 2722 Words
    • 11 Pages
    Good Essays
    Read More
  • Better Essays

    Cmgt 442 Week 4 Individual Assignment Outsourcing Risks
    • 1256 Words
    • 6 Pages

    Cmgt 442 Week 4 Individual Assignment Outsourcing Risks

    Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service provider for data storage, use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking, use of a vendor to support desktop computers, and use of a vendor to provide network support. This document will also discuss the risk mitigation strategies for each individual situation.…

    • 1256 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Is Outsourcing Good
    • 693 Words
    • 3 Pages

    Is Outsourcing Good

    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…

    • 693 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Bp Challenges of Globalization
    • 430 Words
    • 2 Pages

    Bp Challenges of Globalization

    John Manzoni, Chief Executive, Refining and Marketing for BP, gave a speech in 2005 discussing BP’s future in globalization and the challenges that lie in an increasingly global business environment. He said that business (BP) is the heart of society and can’t ignore what is happening around it, and that BP exists for a purpose, which is to provide goods and services that people want to buy at a price they can afford to pay, and BP exists because of shareholders who put their money in trust with business expecting a reasonable return in exchange (Manzoni, 2005). “Business won’t succeed if it isn’t engaged with the society around it” (Manzoni, 2005, p. 1). The most dramatic change of the last two decades has been the globalization of economic activity, and even though there has been international trade for centuries, the scale of the change over the last twenty five years has been remarkable (Manzoni, 2005). Evidence of globalization is evident is in almost every sector and is changing the shape of international economy (Manzoni, 2005). Manzoni lines out four main challenges for BP as they prepare for this increase in globalization. The first is absence of framework of global rules, a company based in one country must obey the rules of that jurisdiction but it must also and simultaneously obey the law in each and every place in which it is working (Manzoni, 2005). The second challenge is the way in which BP is organized and managed, the sort of global scale and reach which is necessary to be competitive on an international scale requires a widely distributed set of operations, spread over many times zones and jurisdictions (Manzoni, 2005). The third challenge is cultural diversity. The nationality of the company has to be reflected in the makeup of the workforce and senior management especially. It is very hard to find people who can go into different cultures and bridge the divides (Manzoni, 2005). The fourth issue is…

    • 430 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Outsourcing: Staying Competitive in the Global Market
    • 1811 Words
    • 8 Pages

    Outsourcing: Staying Competitive in the Global Market

    Ribeiro, John. (2004, October 26). Outsourcer Beware. Network World Fusion. Retrieved November 8, 2004, from…

    • 1811 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    What are the Pros and Cons of Outsourcing?
    • 1194 Words
    • 35 Pages

    What are the Pros and Cons of Outsourcing?

    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…

    • 1194 Words
    • 35 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    International Business 401 Module 3 Case Assignment
    • 662 Words
    • 3 Pages

    International Business 401 Module 3 Case Assignment

    In recent times, Outsourcing is becoming very much accepted. It pertains to the “acquirement of a product or service rather than producing it”. It can also be interpreted as a transfer or delegation of day-to-day business process to an external service supplier. At present, outsourcing is generally used by every organization in one way or the other. Most of the IT companies which are functioning in quite a few nations are doing their work with the help of outsourcing this can be understood with an example of Dell Computers (Rein gold, 2004).…

    • 662 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    How Does Outsourcing Affect The Economy
    • 3483 Words
    • 14 Pages

    How Does Outsourcing Affect The Economy

    In many situations outsourcing not only goes to a different country, but to a different continent. Furthermore, the process of outsourcing can be carried out through a third-party service, which in most cases is also located in an offshore country or managed through setting up a wholly owned subsidiary in an offshore location (Oshri 27-28). Therefore, outsourcing does not only move operations and process out of the country, but the United States has accepted the outsourcing of customer service, administration and information…

    • 3483 Words
    • 14 Pages
    Best Essays
    Read More
  • Good Essays

    Outsourcing
    • 476 Words
    • 2 Pages

    Outsourcing

    Now more companies are seeking strategic advantages based on outsource alliances. While the relentless push to operate more efficiently remains the driving force behind outsourcing, it has also become a competitive, strategic marketplace tool, allowing companies to improve response times and develop new products faster than ever. Once focused just on reducing expenses, today’s outsourcing initiatives are likely to help companies do things they previously could not do.…

    • 476 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Human Resources Outsourcing
    • 1160 Words
    • 5 Pages

    Human Resources Outsourcing

    Outsourcing is the contracting out of a business process, which an organization may have previously performed internally or has a new need for, to an independent organization from which the process is purchased back as a service. Though the practice of purchasing a business function instead of providing it internally is a common feature of any modern economy, the term outsourcing became popular in America near the turn of the 21st Century. An outsourcing deal may also involve transfer of the employees and assets involved to the outsourcing business partner.…

    • 1160 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Effects of Outsourcing on Companies Employees and the Economy
    • 1621 Words
    • 7 Pages

    Effects of Outsourcing on Companies Employees and the Economy

    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.…

    • 1621 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Managerial Accounting
    • 2251 Words
    • 10 Pages

    Managerial Accounting

    First, we should understand who is engaging in outsourcing. Basically, any types of companies, most of them are big businesses, but even some small firms also engage in outsourcing. Jamee (n.d.) explained in his article, “Even small businesses have already engaged in outsourcing to avail of the benefits that the industry has to offer.” The outsourcing becomes more and more popular because there are benefits for businesses, which can save time, money, and so on. According to Jamee’s article (n.d.), “Outsourcing has been considered as a staple in the market since most businesses now have realized that entering a partnership with a process outsourcing company has an extensive range of benefits attached to it.” So that is why there are many companies engaging in outsourcing now.…

    • 2251 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Better Essays

    Outsourcing Risk
    • 1859 Words
    • 8 Pages

    Outsourcing Risk

    Outsourcing can be expensive and have multiple risks; however, in this paper I will identify the possible risks to an organization in each of the following outsourcing situations:…

    • 1859 Words
    • 8 Pages
    Better Essays
    Read More
  • Better Essays

    Outsourcing - Managerial Accounting
    • 2464 Words
    • 10 Pages

    Outsourcing - Managerial Accounting

    Outsourcing is used very extensively in today’s world. Organizations use all kinds of outsourcing in their ever day activities to improve products and services that they provide to customers. Outsourcing is used to free both capital and brainpower for investment, research, and development. More than 90 percent of companies view outsourcing as an important part of their business strategy.…

    • 2464 Words
    • 10 Pages
    Better Essays
    Read More

Related Topics