Business Process Outsourcing in Action

Business Process Outsourcing in Action

A business process is the skeleton of certain business activities. It involves the description of different tasks and possible outcomes that are associated with specific business activities. It is essential in crafting the business goals of a certain corporate organization, which is clearly defined in the organization’s business strategy. 

A business process is classified into three categories, which are as follows:

• The management processes, which are followed to run the operation of the business and comply with all existing yet relevant requirements. 

• The operational processes, which are followed in delivering the business value to clients, and are considered an integral part of a corporate organization’s core business. 

• The supporting processes, which are followed to support the core-based processes. It includes accounting, information technology (IT) support, and recruitment processes. 

Being the skeleton of your organization’s business activity, you must give utmost importance to your business process as a whole. This is extremely important since the success or failure in achieving the goals of your business will largely depend on the process that you have followed, together with your business strategies and plans. Thus, without an effective business process, your business is as good as dead when the time comes. 

Realizing the importance of a business process in achieving their business objectives, some companies prefer to outsource some or all of their business process (most specifically the non-core processes) to third-party organizations. The main motive in outsourcing a business process is to allow the business to invest most of their time, financial, and human resources into core activities and focus on building effective strategies, which will fuel the growth of the company. 

Since the global marketplace is fast-changing and highly competitive, your business must concentrate on improving productivity and at the same time trim down unnecessary costs. Non-core business processes are being outsourced since the tasks involved in these processes consume time, essential resources, and energy. Thus, outsourcing these non-core business processes will help you achieve a cost-efficient system. 

Non-core business processes that can be outsourced range from production to customer service to support functions (such as software development). Most companies that are outsourcing their business process are from Western countries and they are delegating the work to outsourcing firms located offshore, especially countries located on the Eastern hemisphere, such as China, the Philippines, India, and Malaysia. 

While more and more companies are becoming comfortable with outsourcing their business processes, outsourcing most of their learning and development functions is still a new approach to many learning professionals. Moving the training and learning model that is completely in-house to one that will be handled by other individuals outside the business is a big leap. However, as mentioned earlier, these processes must receive equal importance and consideration for the benefit of your business as a whole. Thus, despite business process outsourcing as a new approach, many training and learning professionals are starting to get the grip of the new system and subsequently will follow the outsourcing trend. 

Business process, especially the non-core one, needs to be given equal importance and attention to achieve an efficient business operation. Outsourcing these business processes will not be a waste of time and financial resources, but rather a strategy to be followed. Surviving in this highly-competitive global marketplace is not as easy as you think. You need an option that will work to your advantage — and that is outsourcing.

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