Topic > Business Process Outsourcing - 1337

The trend in the business world is growing rapidly. Historically, it is difficult to find the best solutions for common problems in the business world such as quality, cost and innovation. However, business experts responded by implementing strategies. One of these strategies is “the procurement of services from third parties” (Overby 2007), called outsourcing. According to The Daily Telegraph (2007), global outsourcing is now valued at approximately $4 trillion. Initially it was thought that only IT management could be outsourced. However, the situation changed when the issue of Business Process Outsourcing (BPO) became a major discussion point in the second half of 2003 (Click and Duning 2004, 209). This document will define BPO and its styles. Furthermore, the categories of BPO will be explained with a focus on some examples in Australia. Finally, the future effects of BPO on Australian politics and the Australian workforce will be outlined. Since the second half of 2003, many definitions of BPO have been presented. Additionally, many challenges have emerged in defining BPO. One of them is that BPO refers to the outsourcing of any business process, which means a wide range of possibilities such as financing, human resources, marketing and asset management (Halvey and Melby 2007, 3-4). In any case, as Halvey and Melby (2007, 4) stated, an official definition of BPO is found in The End-User Executive's Guide to PBO, which defines BPO as "the delegation of one or more intensive business processes to a supplier external which, in turn, administers and manages the selected processes based on measurable performance parameters "Moreover, there are three different styles of BPO. First, offshore BPO, which is the center of the paper… John Wiley and Sons, Inc.Daily Telegraph, The (Sydney). 2007. Empty the cards and call in the experts. 19 Nov 77. Halvey, J and B. Melby. 2007. Business Process Outsourcing: Processes, Strategies and Contracts. New Jersey: John Wiley and Sons, Inc. Holbert, N. and M. Speece. 1993. Practical marketing research: An integrated global perspective. Singapore: Prentice Hall.Lead Generation Company (LGCo.). 2005. LGCo. Home page. www.lgco.com.au/ (accessed 17 December 2007).Marketing Angels. 2007. Cases. www.marketingangels.com.au/ (accessed 11 December 2007).Overby S. 2007. ABC: An Introduction to Outsourcing. CIO, 30 August 2007. www.cio.com (accessed 5 November 2007). Teicher, J., B. Gramberg, and P. Holland. 2000. Outsourcing in Australia and the unions' response: Electricity generation in Victoria. Working paper., Monash University.