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Essay / Business Process Outsourcing - 1337
The trend in the business world is growing rapidly. Historically, it has been difficult to find the best solutions to common business problems such as quality, cost and innovation. Nevertheless, business experts reacted by implementing strategies. One such strategy is “outsourcing services to a third party” (Overby 2007), known as outsourcing. According to the Daily Telegraph (2007), global outsourcing is now valued at approximately US$4 trillion. Originally, it was thought that only IT management could be outsourced. However, the situation changed as the issue of business process outsourcing (BPO) became a major point of discussion during the second half of 2003 (Click and Duning 2004, 209). This article will define BPO and its styles. Additionally, it will explain the categories of BPO with a focus on some examples in Australia. Finally, it will present the future effects of BPO on Australian policy and the Australian workforce. Since the second half of 2003, numerous definitions of BPO have been presented. In addition, to define BPO, many challenges have emerged. 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). Regardless, as stated by Halvey and Melby (2007: 4), an official definition of BPO can be found in the End-User Executive's Guide to PBO, which defines BPO as "the delegation of one or several intensive business processes to an external provider who, in turn, administers and manages the selected processes based on measurable performance metrics. "Furthermore, there are three different styles of BPO. Firstly, offshore BPO, which is the m...... middle of paper......John Wiley and Sons, Inc.Daily Telegraph, The (Sydney ), 2007. Clean Up and Bring in the Experts November 19, 77. Halvey, J and B. Melby 2007. Business Process Outsourcing: Processes, Strategies and Contracts. , N. and M. Speece. 1993. Practical Marketing Research: An Integrated Global Perspective. Singapore: Lead Generation Company (LGCo.). (accessed December 17, 2007). .cio.com (accessed 5 November 2007). Teicher, J., B. Gramberg and P. Holland. 2000. Outsourcing in Australia and the union response: Power generation in Victoria. Monash University.