The main purpose of business process outsourcing is to liberate the company's limited resources from non-core business and focus on core business, so as to serve the core business better and more intently.
Business process outsourcing is not only conducive to improving the company's own core business capabilities and efficiency, because most outsourcing usually chooses regions or countries with advantages in human resources, which also relatively reduces the cost of this part of business processes. And through professional outsourcing, it is beneficial to improve the automation ability of this part of the process.
Extended data outsourcing can be divided into two types according to the geographical distribution of suppliers: domestic outsourcing and offshore outsourcing.
1, domestic outsourcing
Domestic outsourcing means that the outsourcing party and its outsourcing supplier come from the same country, so the outsourcing work is completed in China.
2. Offshore outsourcing
Offshore outsourcing means that the outsourcer and its suppliers come from different countries and the outsourcing work is completed internationally. Because of the differences in labor costs, outsourcers usually come from countries with higher labor costs, such as the United States, Western Europe and Japan, while outsourcing suppliers come from countries with lower labor costs, such as India, the Philippines and China.
Although domestic and offshore outsourcing have many similar attributes, they are quite different. Domestic outsourcing puts more emphasis on core business strategy, technology and professional knowledge, from fixed costs to variable costs and economies of scale, emphasizing value-added rather than cost reduction; Offshore outsourcing mainly emphasizes cost saving and the availability of skilled labor, and uses lower production costs to offset higher transaction costs.
When considering whether to outsource offshore, cost is the decisive factor, followed by technical ability, service quality and service providers.
Baidu Encyclopedia-Business Process Outsourcing