caseism

Outsourcing Business Processes for Innovation Case Solution & Answer

The number of companies that outsource critical business processes to external providers has increased significantly worldwide. In 2012, companies outsource some 309 billion in services – activities such as finance and accounting, human resources management, procurement and legal services – and the total volume has increased at a rate of about 25% annually. Although many organizations involved business process outsourcing (BPO) as part of an effort to reduce costs or to acquire new skills, has since evolved into much more. In relations firms occupy as efficient service providers to offer substantial long-term improvements in operational efficiency and customer strategic performance. These types of innovations require enterprises and service providers to work together. BPO providers do not need incentives to improve sales or margins, but should focus on the performance of the client. Although partners can stimulate innovation through the use of mechanisms such as productivity targets, Innovation Days allocation and agreeing to participate in innovation, not innovation Unless customers and suppliers to develop? implement a more comprehensive process combining acculturation among agencies, an attractive way to generate ideas, adequate funding and change management system. Perhaps the most important innovation in BPO factor, however, is whether the right people are in place to drive the dynamic process of innovation. A couple of effective leadership – a person of the client organization and another organization provider – goes a long way to boost the innovation process. In relationships BPO success, leaders are experienced and capable, with high levels of credibility, influence and power within their own organizations.
by
Mary C. Lacity,
Leslie P. Willcocks
Source: MIT Sloan Management Review
8 pages.
Publication Date: April 1, 2013. Prod #: SMR445-PDF-ENG
Solution Process Outsourcing Business Case for Innovation

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY