Service outsourcing refers to a management mode in which an enterprise outsources its non-core business and uses the best external professional team to undertake the business, so that it can focus on its core business, reduce costs, improve efficiency, and enhance its core competitiveness and adaptability to the environment. It includes business process outsourcing (BPO), information technology outsourcing (ITO) and knowledge process outsourcing (KPO).
Service outsourcing enterprises refer to service outsourcers who provide service outsourcing services to customers according to long-term service contracts signed with service outsourcing contractors.
Service outsourcing refers to information technology outsourcing service (ITO) and business process outsourcing service (BPO) provided by service outsourcing enterprises to customers. Including: business transformation outsourcing, business process and business process service outsourcing, application management and application service outsourcing, basic technology outsourcing (IT, software development and design, technology research and development, basic technology platform integration and management integration), etc.
Classification and content of service outsourcing
Service outsourcing is divided into information technology outsourcing service (ITO) and business process outsourcing service (BPO), both of which are based on IT technology. ITO emphasizes technology, which involves more costs and services, while BPO emphasizes business process, which solves the problems of business effect and operational benefit. BPO often involves several business principles and often contacts customers, so its significance and influence are more significant. The classification and content of service outsourcing are shown in the following table.
Not only does the IT industry need BPO, but every business of BPO is inseparable from the support of IT business, which leads to the opportunity of IT outsourcing. BPO is more like a business cooperation relationship and pays more attention to the effect of business.
information technology outsourcing (ITO)
System operation service: processing and integrating bank data, credit card data, various insurance data, insurance claim data, medical/physical examination data, tax data and legal data (including information).
System application services: information engineering and process design, management information system services, remote maintenance, etc.
Basic technical services: undertaking technical research and development, software development and design, basic technology or basic management platform integration or management integration, etc.
Business process outsourcing service (BPO)
Internal management services of enterprises: provide various internal management services for customer enterprises, including logistics services, human resources services, wages and benefits services, accounting services, financial centers, data centers and other internal management services.
Business operation services of enterprises: provide technical research and development services, sales and wholesale services, after-sales services (after-sales telephone guidance and maintenance services) and other business process services for customer enterprises.
Supply chain management services: provide customers with procurement, transportation, warehouse/inventory overall scheme services, etc.
According to the geographical distribution of service outsourcing contractors, service outsourcing can be divided into three types: offshore outsourcing, offshore outsourcing and domestic outsourcing. Offshore outsourcing means that the transferor and the service provider come from different countries and the outsourcing work is completed across borders; Offshore outsourcing means that the transferor and contractor come from neighboring countries, and coastal countries are likely to have the same language and similar culture, which usually provides a certain degree of cost advantage; Domestic outsourcing means that the transferor and the service provider come from the same country and the outsourcing work is completed in China.
The definition of service outsourcing by world-renowned consulting companies;
Definition of GARTNER Company in the United States: According to the main procurement methods used by end users and IT service providers, GARTNER divides the IT service market into discrete services and outsourcing as service outsourcing. Service outsourcing is divided into IT outsourcing (TIO) and business process outsourcing (BPO).
TIO can include a combination of product support and professional services to provide customers with IT infrastructure, enterprise application services or both, so as to ensure customers' business success. At the lowest level, outsourcing will include some IT management services, while ITO will be further subdivided into data center, desktop, network and enterprise application outsourcing.
BPO means "entrusting one or more IT-intensive business processes to an external supplier so that he can manage and control the selected processes. The above services are performed based on defined and measurable methods. " Business processes outsourced to ESP include logistics, procurement, human resources, financial accounting, customer relationship management or other management or consumer-oriented business functions.
Definition of IDC: IDC believes that the IT service market consists of three sub-markets: IT outsourcing market (ITO), consulting and system integration market (C & ampSI) and technical product support market (TPS). The main BPO markets include business process outsourcing services such as purchasing, financial accounting, human resource training and customer service. The IT outsourcing (ITO) market and the BPO market together constitute the service outsourcing market.
Bi Bo Management Consulting Company defines: Service outsourcing refers to a service mode in which enterprises concentrate limited resources on their core competitiveness, rely on information technology, and use the knowledge labor of external professional service providers to complete the work originally completed by enterprises themselves, thus reducing costs, improving efficiency, enhancing the rapid response ability of enterprises to the market environment and optimizing their core competitiveness.
Service outsourcing in a broad sense:
It refers to entrusting the responsibility of continuous management or development of services to a third party according to the service agreement. WTO's General Agreement on Trade in Services divides services into 12 departments, namely, business services, communication services, construction and related engineering services, distribution services, education services, environmental services, financial services, health services, tourism services, entertainment, cultural and sports services, transportation services and other services. Service outsourcing can be classified according to this 12 department.
Other definitions and classifications of service outsourcing include: according to the motivation of service outsourcing, service outsourcing is divided into strategic outsourcing, strategic outsourcing and transformational outsourcing; According to the form of service outsourcing, service outsourcing is divided into: product or parts outsourcing and service project outsourcing; Service outsourcing is divided into single-level outsourcing and multi-level outsourcing according to the number of subcontracting layers; According to the number of service outsourcing contractors, service outsourcing is divided into one-to-one outsourcing and one-to-many outsourcing.