Most businesses have a significant amount of sensitive information, including trade secrets, business plans, and proprietary business knowledge.
Safeguarding critical business information is a concern, even in the United States. Threats to information security, such as theft by company insiders, former employees, and computer hackers, abound.
Offshore outsourcing presents different and in some cases more potent threats [...]
Entries Tagged as 'Business outsourcing'
Intellectual property risks
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Project risks
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Project risks are defined as the potential that the business process outsourcing (BPO) initiative may not provide the cost savings, strategic advantages, on productivity improvements anticipated.
The reasons for this potential risk are too numerous to list. Unexpected incompatibilities between software infrastructures could prove intractable and lead to delays, cost overruns, and lost business.
The cultures of [...]
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Business process outsourcing (BPO): Training and support infrastructure
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Most of the problems employees will experience during a BPO project will not be related to the hardware or software infrastructure associated with BPO.
They will more likely be related to failures in understanding new workflows, work procedures, and work responsibilities.
From the apocryphal user who cannot find the “Any” key (“Press any key to continue”) to [...]
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Human capital risks
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Change management is a human resource issue, involving a well-understood pattern of overcoming resistance, instituting changes, and reestablishing standard operating procedures.
Some change management consultants have expressed this as unfreezing-moving–refreezing the organization.
In this section we are not addressing the risks associated with change management; rather, we focus on the technical risks involved with the thorny issues [...]
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LDV Integrates Its Systems with Gedas to Improve Performance
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LDV started out as a division of British Leyland. When the U.K. manufacturing giant closed its doors, many industry observers believed that LDV, which builds commercial vehicles, would soon follow suit.
But LDV was saved by a management buyout and today employs more than 1,000 people at its Birmingham factory.
LDV has extensive expertise in the automotive [...]
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Business process outsourcing (BPO): Knowledge infrastructure
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We have already discussed the data and information infrastructure that is important part of any BPO relationship.
Competitive businesses are data driven, and in many cases a large part of their overall value is derived from industry and market data they have collected, stoned, and analyzed.
A company’s knowledge infrastructure is even more important because knowledge refers [...]
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Software infrastructure underlying the business process outsourcing (BPO) project
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Software compatibility is often a difficult issue within an organization. Compatibility issues are amplified iii a BPO relationship when attempting to bring buyer and vendor applications into alignment.
Database issues will confront nearly every BPO relationship, as data sharing is the backbone of most BPO projects.
This book is not intended to be a treatise on how [...]
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Hardware infrastructure underlying the business process outsourcing (BPO) project
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The first issue to consider with respect to the hardware infrastructure underlying the BPO project is whose systems to use.
Because providing high levels of service in the specific business process is the vendor’s core competence, their hardware capabilities usually outstrip those of the buyer.
Despite this common circumstance, the decision to use the vendor’s hardware system [...]
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Business process outsourcing (BPO): Relationship risk factors in business
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Although a mature and seamless relationship would most likely enhance the benefits of outsourcing, failure in the BPO relationship can lead to negative and potentially irreparable consequences.
The business literature is rife with stories about BPO relationships gone had, and there will be many more in the coming years.
As the BPO revolution picks up steam, no [...]
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Inadequate Service Level Agreements (SLA) Specifications
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SLA specifications and metrics measure the provider’s performance during the operating phase of the business process outsourcing (BPO) Life Cycle.
They must be clearly defined and effectively designed into the contract because this is what allows the buyer a comfort level in turning over control of its business processes to the vendor.
The metrics associated with SLAs [...]
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