Business Process Outsourcing

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Business Process Outsourcing by Mind Map: Business Process Outsourcing

1. Why Companies Outsourced?

1.1. Capacity Management

1.2. Lower Cost

1.3. Better Performance

1.4. Faster and Continuous Service Delivery

1.5. Part-based Activities

2. What is Being Outsourced?

2.1. Support or Auxiliary Services

2.1.1. Janitorial Service

2.1.2. Cafeteria

2.1.3. Copy Center

2.2. Routine activities or activities that canbeautomated at larger centers

2.2.1. Small banks outsourcing check processing to larger banks

2.2.2. Riding on ATM base of multi-bank network

2.2.3. Small vendors using Amazon com as data center marketing

2.3. IT services

2.3.1. Application development

2.3.2. Application maintenance and management

2.3.3. Production/ Data-Center Operations

3. Advantages and Disadvantages of Outsourcing

3.1. Advantages o fOutsourcing Employer Perspective

3.1.1. Service Provide rmay have more expertise or capability than the buyer

3.1.2. Buyer can leverage economies of scale of the Service Provider

3.2. AdvantagesEmployeePerspective

3.2.1. Work Abroad Live here

3.2.2. Professional Growth

3.2.3. Financial Independence

3.3. Disadvantages of Outsourcing Employer Perspective

3.3.1. Cost can be higher

3.3.2. Buyer does not have full control ofresources doing work

3.4. Disadvantages Employee Perspective

3.4.1. Shifting schedule

3.4.2. Dealing with irate customer