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Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain .
On-demand outsourcing is a trend in outsourcing wherein major internal operations processes of a company are being shifted to a provider that is paid for by the number of transactions involved. The business transferring the services pays for the quality, special skills and the competence of the service provider's employees.
Business Process Outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a second-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain .
Outsourcing may involve a subset of an operation's logistics, leaving some products or operating steps untouched because the in-house logistics is able to do the work better or cheaper than an external provider. [6] Another important point is the customer orientation of the 3PL provider.
Information technology (IT) outsourcing, and any kind of digital outsourcing, can result in consequential knowledge transfer that benefit the sourcing partner in the longrun. [4] Through online outsourcing a company can relieve itself of secondary tasks and concentrate on core issues, thus improving its efficiency.
Outsourcing relationship management linking to external service providers In his 2004 book "The Outsourcing Revolution", [ 2 ] author Michael Corbett discusses the challenges of integrating two separate business entities (the client and the external service provider) across the different organizational boundaries and differing motivations and ...
In economic theory, the pros and cons of outsourcing have been discussed since Ronald Coase (1937) asked the famous question: Why is not all production carried on by one big firm? [6] An informal answer has been provided by Oliver Williamson (1979), who has emphasized the importance of different transaction costs within and between firms. [32]
Sales outsourcing providers include manufacturers' representatives, contract sales organizations, sales agents or SO outsourcing consultants. One way of organising the sales effort, especially when product delivery is erratic, is to replace or supplement internal resources with functionality and expertise brought in from contract sales ...
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