Companies pursue BPO partnerships as an effort to reduce costs. The top processes outsourced include data entry, tech support, and human resources functions. The common element behind these processes is that they are viewed as “non-core” (ie non-mission critical) processes. Cost takeout is the highest priority for non-core processes .The flip side to this result is that more than 40% of people who have outsourced have had situations where they had to pull a process back in house. 2/3 of the companies surveyed report “poor quality” as the main motivation for taking business processes away from an outsourcer .This matches everyone’s preconceived notions regarding outsourcing – low cost = low quality.
BPM & BPO processes
The processes being outsourced are typically document intensive processes like credit card processing, mortgage processes, invoice processing etc. The first and foremost requirement of an organization is to modelling of the processes as it is by the BPO. The second requirement is of defining a simple business rule based work flow for the process. BPO who are relying on legacy methods not following BPM principles badly fail on these two fronts. The processes are paper based not providing enough insight in to the process and the workflow is also manual with manual crosschecks. The processes cannot be run in a real time environment automatic lay to test them for clients requirements and there is no tool for agile remodelling of processes to suite client needs .On top of this there is no utility to link to workflow to generate the KPI ,Reports and audit trail for processes.BPM provides a comprehensive solution for managing BPM processes in a better way right form modelling ,defining workflow and execution to business analysis and monitoring.
Saturday, January 5, 2008
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