Business Process Outsourcing (BPO)
Characteristics
- Outsourcing of business processes along with their IT systems and applications
- IT is not separated from business process
- Vendor selection based on business process expertise (e.g., logistics), not just IT expertise
Advantages
- Focus is on business value
- Best-of-breed vendors
Challenges
- Must define business processes to be outsourced
- Achieving enterprise-integration
- Measuring and incentivizing process outcomes
Success Requirements:
- Identify and isolate the business process to be outsourced
- Achieve enterprise IT interoperability
- Measure and incentivize business process outputs