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 Home > IT
Services and Solutions > BPO
Services > Why Business
Process Outsourcing? |
Companies generally outsource processes to shift accountability and control costs. Management can then focus on core areas, and not have its attention diverted to other areas. Business Process Outsourcing (BPO) is important because it links to shareholder value. |
As customers have become more sophisticated, they have
come to realize that the goal is to link business performance
to shareholder value. Business Process Outsourcing or
BPO has gained prominence because people have asked, "When
do I get the business result?" BPO is about optimizing
business performance to drive value creation.
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Executives want shareholder value from investments.
This is an important shift in management thinking with respect to IT and shared services. They want to know how your shared services and world-class processes are creating shareholder value for the firm. They are likely to ask, "What about partnering with a supplier to sell our capabilities to the outside?"
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Business Process Outsourcing (BPO) is often the next step after shared services.
Companies that have centralized services and created a shared services organization have already handled some of the change management issues that arise from Business Process Outsourcing or BPO. They also often see the next step as BPO.
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Some functions, such as procurement, are no longer buried in the back office.
What once was considered a necessary evil - procurement - is now laden with big expectations. But CEOs do not want to know how you do it, they just want you to do it. Outsourcing procurement is particularly appealing to corporations with large decentralized spend, where corporate controls little or nothing
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You can now make a business case for BPO outsourcing.
Companies generally outsource processes to shift accountability and control costs. Management can then focus on core areas, and not have its attention diverted to other areas. Outsourcing also allows companies to avoid capital expenditures, which is especially important in non-core areas that may need new systems. Generally, companies only want to spend money on core areas. |
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We have partnered together with Xicom for the last four years, during which time we have successfully managed a large number of projects in the Value Chain function across each of our geographic regions. Xicoms' consultants and client managers have provided flexible, cost-efficient solutions, and importantly share our passion to deliver with quality exceeding our clients' expectations. Xicom has consistently demonstrated technical competency, resourcefulness, commitment and the tenacity to complete the most challenging assignment.
Howard Kim - Chief Technology Officer (CTO)
Taylor & Francis Group, LLC.
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