Outsourcing is a hot topic in the business press, but it's hardly new. A key methodology in today's business world, business process outsourcing (BPO) lets companies take full advantage of the realities of globalization by exporting certain business processes to outside providers who can do it cheaper, faster, or better. The benefits of BPO in terms of cost and competition are obvious, but it's also an effective way for companies to focus more on their core competencies. Outsourcing peripheral functions lets companies concentrate on what they do best.

Many functions can be and are regularly outsourced, such as payroll and benefits, customer service, call centers, technical support, and even manufacturing, but BPO is much more than the movement of jobs from one place to another. Like other business methodologies such as Six Sigma, BPO is a process that must be undertaken carefully and judiciously to produce maximum benefit for businesses.

This book presents a step-by-step approach to understanding the proper application of BPO, assessing the BPO opportunities within an organization, and managing the initiative effectively. Covering more than just the nuts and bolts of BPO, this comprehensive resource also examines the vital, real-world issues of BPO's effect on employees and interoffice relationships-helping managers control the pace of change and balance the interests of employees and shareholders. Regardless of the processes involved or the revolutionary nature of modern business, all organizations are built on human beings, and managing human relationships in times of change is a task for which all managers must be prepared. Covering not only practical business considerations but ethical ones as well, this is an indispensable source of information that businesses large and small won't want to do without.

Enabling real cost reductions for both organizations and their customers alike, BPO is as inevitable a revolution as the business world has seen in decades. Those business managers who fail to recognize and realize the competitive advantage it offers will learn too late that the global economy has passed them by.

Business Process Outsourcing (BPO) is becoming the new revolution as company's of all sizes are seeking to take advantage of this source of competitive advantage.

This book provides a step-by-step approach to understanding the application of Business Process Outsourcing, assessing the BPO opportunity in the company, and then managing the transition to BPO. It serves as a guide to implementing BPO and as a reference source to solving the variety of issues that may arise during a BPO initiative. Each chapter features a case study, insight from a practitioner, focus on how BPO affects people, and ethical considerations.

* Discusses both the how and why of business process outsourcing with a straightforward "how to" approach.

* Provides managers with the tools to analyse the BPO opportunities for their own firms, as well as techniques and strategies for managing a BPO initiative.

* Empowers businesses of all sizes to take advantage of this all-encompassing business revolution



Table of Contents

Foreword

Preface

Acknowledgements

PART ONE : BPO Overview

CHAPTER 1: What Is So Revolutionary about BPO?

CHAPTER 2: Who Is Using BPO and How?



PART TWO: To BPO or Not to BPO?

CHAPTER 3: Identify and Select the BPO Opportunity.

CHAPTER 4: Identify and Manage the Costs of BPO.



PART THREE: BPO Vendor Selection.

CHAPTER 5: Identify and Select a BPO Vendor.

CHAPTER 6: BPO Contracts.



PART FOUR: Executing an Outsourcing Project.

CHAPTER 7: Managing the BPO Transition.

CHAPTER 8: Managing the Buyer?Vendor Relationship.

CHAPTER 9: Infrastructure Considerations and Challenges.

CHAPTER 10: Business Risks and Mitigation Strategies.



PART FIVE: The Future of BPO.

CHAPTER 11: Future Potential for BPO.



Endnotes.



Index.









About the Author

RICK L. CLICK is the CEO of American Outsourcing Group, LLC (www.aogusa.net), a Houston-based business process outsourcing consulting firm.

THOMAS N. DUENING is Assistant Professor of Management at the University of Houston-Downtown, and President of INSYTE Business Research Group (www.insytebrg.com).