BPO - Business Process Outsourcing: High-impact Strategies - What You Need to Know: Definitions, Adoptions, Impact, Benefits, Maturity, Vendors

Kevin Roebuck

Description

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm.

This book is your ultimate resource for BPO - Business Process Outsourcing. Here you will find the most up-to-date information, analysis, background and everything you need to know.

In easy to read chapters, with extensive references and links to get you to know all there is to know about BPO - Business Process Outsourcing right away, covering: Business process outsourcing, Assessment of goodwill, Bizagi, Bonita Open Solution, BPO security, BPX, Business communication, Business logic, Business Motivation Model, Business Object Model, Business operations, Business pattern, Business process, Business Process Definition Metamodel, Business process management, PNMsoft, Business process mapping, Business Process Modeling Language, Business process reengineering, Business requirements, Captive service, CCU Delivery, Change order, Communication Enabled Business Process, Consumption Maps, Coworking, Demand chain, Direct Store Delivery, Dynamic business process management, Extended Enterprise Modeling Language, Feasibility study, Functional silo, GRCM, A Guide to the Business Analysis Body of Knowledge, Human interaction management, IDS Scheer, International Business Development, Knowledge process outsourcing, Leverage Point Modeling, Market analysis, Methodology Management System, Misuse case, Open door policy (business), Operating agreement, Order processing, Banking BPO Services, Desktop Outsourcing, Information technology outsourcing, Business process outsourcing in India, Pegasystems, Process mining, Process ontology, Process-centered design, RACI framework, Real-time enterprise, Returns management system, Sales, Sales process engineering, Software ecosystem, Total Security Management, Transformational Outsourcing, Value Process Management, Variance analysis (operations management), Weak workflow, Outsourcing, Offshoring, Nearshoring, Homesourcing, Globalization, List of call centre companies, Recruitment, Recruitment Process Outsourcing, Software testing outsourcing, Business process outsourcing in the Philippines, Website Management Outsourcing, Offshoring Research Network, Legal outsourcing

This book explains in-depth the real drivers and workings of BPO - Business Process Outsourcing. It reduces the risk of your technology, time and resources investment decisions by enabling you to compare your understanding of BPO - Business Process Outsourcing with the objectivity of experienced professionals.

Sujets

• General
• General officer
• Informatique
• COMPUTERS

Informations

• Publié par: Emereo Publishing
• Date de parution: 24 octobre 2012
• Nombre de lectures: 0
• EAN13: 9781743333693
• Langue: English
• Poids de l'ouvrage: 10 Mo

Extrait

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Contents

Articles Business process outsourcing Assessment of goodwill Bizagi Bonita Open Solution BPO security BPX Business communication Business logic Business Motivation Model Business Object Model Business operations Business pattern Business process Business Process Definition Metamodel Business process management PNMsoft Business process mapping Business Process Modeling Language Business process reengineering Business requirements Captive service CCU Delivery

Change order Communication Enabled Business Process Consumption Maps Coworking Demand chain Direct Store Delivery Dynamic business process management Extended Enterprise Modeling Language Feasibility study Functional silo GRCM A Guide to the Business Analysis Body of Knowledge

1 3 4 6 8 9 10 11 13 14 15 16 17 23 24 30 31 33 34 41 46 47 54 55 56 56 59 63 63 65 71 73 73 74

Human interaction management IDS Scheer International Business Development Knowledge process outsourcing Leverage Point Modeling Market analysis Methodology Management System Misuse case Open door policy (business) Operating agreement Order processing Banking BPO Services Desktop Outsourcing Information technology outsourcing Business process outsourcing in India Pegasystems Process mining Process ontology Process-centered design RACI framework Real-time enterprise Returns management system Sales Sales process engineering Software ecosystem Total Security Management Transformational Outsourcing Value Process Management Variance analysis (operations management) Weak workflow Outsourcing Offshoring Nearshoring Homesourcing Globalization List of call centre companies Recruitment Recruitment Process Outsourcing

76 77 79 80 82 84 87 87 91 92 93 94 95 95 97 102 104 107 111 112 112 113 114 119 121 122 124 125 125 128 129 134 143 144 146 172 173 178

Software testing outsourcing Business process outsourcing in the Philippines Website Management Outsourcing Offshoring Research Network

Legal outsourcing

References Article Sources and Contributors Image Sources, Licenses and Contributors

Article Licenses License

180 182 184 186 195

199 204

205

Business process outsourcing

Business process outsourcing

Business process outsourcing(BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was [1] associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm. BPO is typically categorized into back office outsourcing - which includesinternal business functionssuch as human resources or finance and accounting, andfront office outsourcing- which includescustomer-related servicessuch as contact centre services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing. Often the business processes are information technology-based, and are referred to asITES-BPO, where ITES [2] stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

Industry size [3] India has revenues of US$10.9 billion from offshore BPO and US$30 billion from IT and total BPO (expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore share that India enjoyed last year: despite the industry growing 38% in India last year, other locations like Philippines, and South Africa have emerged to take a share of the market. China is also trying to grow from a very small base in this industry. However, while the BPO industry is expected to continue to grow in India, its market share of the offshore piece is expected to decline. Important centers in India are Bangalore, Hyderabad, Chennai, Kolkata, Mumbai, Pune, Patna and New Delhi. The top five Indian BPO exporters for 2009-2010 according to NASSCOM are Genpact, TCS BPO, WNS Global [4] Services, Wipro BPO, and Aegis Ltd..

Benefits and limitations An advantage of BPO is the way in which it helps to increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways. Most services provided by BPO vendors are offered on a fee-for-service basis . This can help a company becoming [5] more flexible by transforming fixed into variable costs. A variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more [6] flexible. Outsourcing may provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes . Another way in which BPO contributes to a company’s flexibility is that a company is able to focus on its core [7] competencies, without being burdened by the demands of bureaucratic restraints. Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the [8] firm’The key lies in knowing which of the main value drivers to focus ons core businesses. –customer intimacy, product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a [9] competitive edge. A third way in which BPO increases organizational flexibility is by increasing the speed of business processes. Supply chain management with the effective use of supply chain partners and business process outsourcing increases

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Business process outsourcing

[10] the speed of several business processes, such as the throughput in the case of a manufacturing company.

Finally, flexibility is seen as a stage in the organizational life cycle: A company can maintain growth goals while [11] avoiding standard business bottlenecks. BPO therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It avoids a premature [12] internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation. A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, may become outdated or turn out to be a poor match for the company over time. Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it as there are issues, which work against these advantages. Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility. Consequently, these challenges need to be considered before a company decides to engage in business process [13] outsourcing

A further issue is that in many cases there is little that differentiates the BPO providers other than size. They often provide similar services, have similar geographic footprints, leverage similar technology stacks, and have similar [14] Quality Improvement approaches.

Threats Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective. For example, security of North American or European company data is more difficult to maintain when accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its [15] [16] contractor. Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats, a Business continuity management (BCM) model is set up. BCM consists of a set of steps, to successfully identify, manage and control the [17] business processes that are, or can be outsourced. Another framework, more focused on the identification process of potential outsourceable Information Systems, [18] identified as AHP, is explained. L. Willcocks, M. Lacity and G. Fitzgerald identify several contracting problems companies face, ranging from [19] unclear contract formatting, to a lack of understanding of technical IT- processes.

References [1] Tas, J. & Sunder, S. 2004,Financial Services Business Process Outscourcing, Communications of the ACM, Vol 47, No. 5 [2] J. G. Nellis; David Parker (2006).Principles of Business Economics(http://books.google.com/books?id=a8RFUZHfz2gC&pg=PA213). Financial Times Prentice Hall. p. 213. ISBN 978-0-273-69306-2. . [3] Cover Story (http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53402) [4] NASSCOM Announces Top-15 ITES-BPO Exporters Rankings for FY 09-10 (http://www.nasscom.in/Nasscom/templates/NormalPage. aspx?id=59704) [5] Willcocks, L., Hindle, J., Feeny, D. & Lacity, M. 2004,IT and Business Process Outsourcing: The Knowledge Potential, Information Systems Management, Vol. 21, pp 7–15 [6] Gilley, K.M., Rasheed, A. 2000.Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance.Journal of Management, 26 (4): 763-790. [7] Kakabadse, A., Kakabadse. N. 2002.Trends in Outsourcing: Contrasting USA and Europe.European Management Journal Vol. 20, No. 2: 189–198

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Business process outsourcing

[8] Weerakkody, Vishanth, Currie, L. Wendy and Ekanayake, Yamaya. 2003.Re-engineering business processes through application service providers - challenges, issues and complexities.Business Process Management Journal Vol. 9 No. 6: 776-794 [9] Leavy, B. 2004.Outsourcing strategies: opportunities and risk.Strategy and Leadership, 32 (6) : 20-25. [10] Tas, Jeroen, Sunder, Shyam. 2004.Financial Services Business Process Outsourcing.COMMUNICATIONS OF THE ACM Vol. 47, No. 5 [11] Fischer, L.M. 2001.From vertical to Virtual; How Nortel’s Supplier Alliances Extend the enterprise [online].Strategy+Business, Available from http://www.strategy-business.com/press/16635507/11153 [Accessed 5 February 2008] [12] (Leavy 2004, 20-25) [13] Michel, Vaughan, Fitzgerald, Guy. 1997.The IT outsourcing market place: vendors and their selection.Journal of Information Technology 12: 223-237 [14] Adsit, D. (2009) Will a Toyota Emerge from the Pack of Me-Too BPO's?,In Queuehttp://www.nationalcallcenters.org/pubs/In_Queue/ vol3no21.html [15] Bunmi Cynthia Adeleye, Fenio Annansingh and Miguel Baptista Nunes. "Risk management practices in IS outsourcing: an investigation into commercial banks in Nigeria", International Journal of Information Management 24 (2004): 167-180. [16] K. Altinkemer, A. Chaturvedi and R. Gulati. "Information systems outsourcing: Issues and evidence", International Journal of Information Management 14- 4 (1994): 252- 268. [17] Forbes Gibb, and Steven Buchanan. "A framework for business continuity management", International Journal of Information Management 26- 2 (2006): 128- 141. [18] Chyan Yang and Jen-Bor Huang. "A decision model for IS outsourcing", International Journal of Information Management 20- 3 (2000): 225- 239. [19] L. Willcocks, M. Lacity and G. Fitzgerald. "Information technology outsourcing in Europe and the USA: Assessment issues", International Journal of Information Management 15- 5 (1995): 333- 351.

Assessment of goodwill

Goodwill assessmentimplies valuation of goodwill of a business organisation or an entity for some specific reason. Goodwill assessments may be undergone under a variety of circumstances, including: • At the time of admission of a new partner. • At the time of retirement/death of a partner. • At the time of dissolution of partnership. • Calculation of profit/loss prior to incorporation. • Valuation of business for amalgamation/absorption/merger. • Valuation of shares.

3

Bizagi

Bizagi

Developer(s)

Stable release

Written in

Operating system

Available in

Type

License

Website

Bizagi

Bizagi BPM Suite

Process Modeler 1.6.1 and BPM Suite 9.1.6 / April 27, 2011

Java and .NET Framework

Cross-platform

English, spanish, french, german, portuguese, russian, dutch, italian, chinese, japanese

BPM Solution

Process Modeler: Freeware, BPM Suite: Annual Subscription or Perpetual

http://www.bizagi.com

Bizagi is a software suite with two complementary products, a Process Modeler and a BPM Suite. Bizagi Process Modeleris a Freeware application with thousands of users worldwide used to diagram and [1] document processes using the Business Process Modeling Notation (BPMN) standard notation. Bizagi BPM Suiteis a Business Process Management (BPM) and Workflow solution that enables organizations to automate processes/workflows. Bizagi BPM Suite integrates with applications such as SAP, Documentum, Sharepoint and email. There is an entry-level edition (Xpress Edition) and two corporate editions (Enterprise .NET and Enterprise JEE).

Bizagi Limited is a privately owned company established in 1989, and its name stands for business agility. Bizagi´s headquarters are located in England; it has direct operations in the UK, Spain, Germany and Colombia and is present [2] [3] in more than 25 countries worldwide through an extended Partner network. Bizagi´s customers can be found in [4] all industries including the public sector, financial services, energy, health, manufacturing, among others.

Features •Bizagi Process Modeler Bizagi BPMN Process Modeler is a freeware application to graphically diagram and document processes in a standard format known as Business Process Modeling Notation (BPMN). Its "intelisense behavior" allows non-technical users to diagram processes by dragging and dropping shapes. Once the process diagrams and the [5] corresponding documentation have been created they can be exported to Word, PDF, Visio, the web or SharePoint to be shared with people who do not have the Modeler installed. •Bizagi BPM Suite Once the process diagrams are finished in the Process Modeler, they can be exported to bizagi BPM Suite for process/workflow automation. Diagrams can be built directly on the Suite as well. The Suite consists of two tools: Bizagi Studio, which is the construction module andBizagi BPM Serverfor execution and control. In Bizagi Studio, the user can graphically define the model associated to the business process (flowchart, business rules, user interface, etc.) for process execution. This includes the forms that will be displayed in the Work Portal for the end user to interact with the process. Models are stored in a database and then used at runtime for process execution by bizagi BPM Server. Bizagi BPM Server executes a web application or Work Portal for end users. Bizagi BPM Suite offers a number of pre-built features such as: Graphic real-time tracking and monitoring, alarms and notifications, performance analysis and reporting, auditing and traceability and workload routing and balancing. Bizagi BPM Suite is a quality-proven and robust BPM solution. Bizagi BPM Suite can also be integrated with CRM

4

Bizagi

and ERP systems.

Applications

Bizagi follows a "no code" approach, which allows to create process driven applications, coordinating both people and systems without the need of programming. Bizagi can be used to diagram and automate any kind of process, from a simple to a very complex one. Bizagi has made available for its community a set of executable ready-to-use process templates that can be downloaded from the site. The templates include Help Desk Management, Six Sigma process management, Personal Loans request, Insurance Policy underwritting, Transactional process, among others.

Recognitions and Awards [6] Bizagi has been positioned by Gartner, Inc. in the 2010 Cool Vendor for BPMS report and the 2010 BPMS Magic [7] Quadrant, an updated evaluation of the top 25 vendors offering multiregional, cross-industry BPMSs. Bizagi has received several awards as BPM Solution for the automation of core business processes in several countries and industries. These innovative and strategic projects enabled bizagi and their clients to be recognized [8] worldwide for the size, creativity and efficiency of these implementations. Bizagi has recently been awarded the [9] [10] [11] Gold Award for Best BPM Project in Europe.

References [1] (English) Object Management Group (OMG) - BPMN Supporters (http://www.omg.org/bpmn/BPMN_Supporters.htm), 01/01/2010 [2] (English) Bizagi Partners (http://www.bizagi.com/partners), 01/01/2010 [3] (English) Next Consultoria - one of bizagi partners in Brazil (http://nextconsultoria.com/), 01/01/2010 [4] (English) Bizagi customers (http://www.bizagi.com/customers) [5] (English) BPM focus article (http://bpmfocus.wordpress.com/category/bizagi/), 01/06/2010 [6] (English) Gartner Cool Vendors in Business Process Management, 2010 (http://www.gartner.com/technology/research/offer/ cool-vendors.jsp), 10/26/2010 [7] (English) San Francisco Chronicle Article (http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/10/26/prwebprweb4706114. DTL), 10/26/2010 [8] (English) Bizagi's Awards (http://www.bizagi.com/index.php?option=com_content&view=article&id=40&Itemid=110&lang=en) [9] (English) Bizagi's Gold Award in PRWeb (http://www.prweb.com/releases/bizagi/BPMawards/prweb4862314.htm) [10] (English) Gold Award - Global Awards for Excellence in BPM & Workflow (http://www.wfmc.org/ winners-announced-in-2010-global-awards-for-excellence-in-bpm-a-workflow.html) [11] (English) Winners Announced in 2010 Global Awards for Excellence in BPM & Workflow (http://www.bpm.com/ winners-announced-in-2010-global-awards-for-excellence-in-bpm-a-workflow.html)

External Links • bpm.com (http://www.bpm.com/) • Workflow Management Coalition (http://www.wfmc.org/)

5

Bonita Open Solution

Bonita Open Solution

Bonita Open Solution

Developer(s)

Stable release

Written in

Operating system

Available in

Type

License

Website

BonitaSoft S.A.

5.4 / January 26, 2011

Java

Cross-platform

english, french, spanish

BPM Solution

Engine: LGPL, Studio/Web: GPL

http://www.bonitasoft.com

Bonita Open Solutionis an open-source BPM and Workflow suite, created in 2001. It was started in French National Institute for Research in Computer Science, and then had incubated several years inside of the French computer science company Bull. Since 2009, the development of Bonita is supported by a company dedicated to this activity: BonitaSoft.

Features Bonita is made of 3 major components : • Bonita Studio: allows the user to graphically modify business processes following the BPMN standard. The user can also connect processes to other pieces of the Information System (such as messaging, ERP, ECM, databases...) in order to generate an autonomous business application accessible as a web form. Bonita Studio also allows the user to design graphically the forms that will be shown to the end user in order to interact with the process. Moreover, the Studio allows the user to get started with processes designed with other standards and technologies such as XPDL or jBPM. It relies on Eclipse. • Bonita BPM Engine: The BPM engine is a JAVA API that allows you to interact programmatically with your processes.It is available under LGPL. It relies on Hibernate • Bonita User Experience: is a portal that allows each end-user to manage in a webmail-like interface all the tasks in which he or she is involved. The portal also allow the owner of a process to administrate and get reports about processes. It relies on GWT. Bonita Open Solution is Open Source and can be downloaded under GPL.

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