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    Essentials of Business Process Outsourcing

     
    http://gsbwww.uchicago.edu/news/capideas/feb05/paypals.html
    8/8/2005

    In this slim volume, authors Thomas Duening and Rick Click look at how organizations of all sizes can apply and implement business process outsourcing (BPO). “We have developed a rigorous methodology that businesses can use to analyze the outsourcing opportunity, to make informed decisions about choosing a vendor, and to manage change and execute an outsourcing project,” the authors state.

    The book recommends a team-based approach involving both technical and social resources. The technical issues are more straightforward than the social aspects, which should include reassuring staff of their role in the process and in the company, training staff on the new way of doing business, keeping up morale, and understanding cultural differences between your company and BPO vendors.

    The concept of the BPO lifecycle is introduced, providing milestones to be met and guidelines to be followed as the project evolves.

    Overall, outsourcing is not to be viewed merely as a way to save money, the authors stress. Through key partnerships, BPO allows your company to work closely with outside vendors who deliver competitive advantage.

    The information here is basic enough that any manager can benefit, although sometimes a little too basic, such as when the authors recommend you not automatically evaluate a vendor proposal based on price alone. The last chapter neatly sums up the risks of setting out on a BPO effort and offers coping strategies.

    Duening is director of the Entrepreneurial Programs Office at the Ira A. Fulton School of Engineering, Arizona State University. Click is senior director of global technology for PayPal.

    - Sean Silverthorne

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