As early as 1989, peter drucker, a famous management scientist, described in his works that "any enterprise that only provides back-office support without generating turnover should be outsourced, and any activities and businesses that do not provide advanced development opportunities should also be outsourced".
This more efficient and economical business model innovation includes ITO (information technology outsourcing) information technology outsourcing and BPO (business process outsourcing) business process outsourcing. ITO focuses on enterprise IT infrastructure such as servers, networks, operating systems and support, while BPO focuses on internal operations of enterprises or back-end activities of customers. BPO requires higher management and service level of outsourcing enterprises, and generates greater profits.
Business process outsourcing (BPO)
BPO is that enterprises outsource some repetitive non-core or core business processes to suppliers to reduce costs and improve service quality. Because BPO process is repetitive and takes the form of long-term contract, BPO is far beyond the scope of consultation. If BPO is successful, it can increase the value of the company. The difference between BPO and traditional IT outsourcing is that BPO can help enterprises complete outsourcing faster.
In a typical BPO contract, the outsourcing service provider will undertake specific functions of the company. Effective BPO is not only outsourcing the process, but also reorganizing the process. Process reengineering includes implementing new technologies or using technologies to improve processes in new ways. It's hard to reach this level.
As victor hugo said, "When an era of ideas comes, nothing can stop it." The era of BPO has arrived. Managing BPO relationship is a skill that every manager needs to master. In order to better understand this management problem, it is necessary to know some basic BPO knowledge.
Definition of three different versions of BPO:
"Entrust one or more business processes that require high information technology to an external service provider, and the external service provider will own, lead and manage these processes according to defined and measurable performance evaluation indicators"-Gartner Group.
"Sign a service contract with an external organization to make it take primary responsibility for a process or function"-Accenture.
"Outsourcing non-core business systems to external service providers for a long time to help enhance shareholder value"-PricewaterhouseCoopers