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BPO and Organizational Performance
Published in Kevin P. McCormack, William C. Johnson, Business Process Orientation, 2001
Kevin P. McCormack, William C. Johnson
The proposed internal organizational impacts of BPO are interfunctional conflict and interdepartmental connectedness. Interfunctional conflict is defined as tension among departments arising from the incompatibility of actual or desired responses and interdepartmental connectedness as the degree of formal and informal direct contact among employees across departments. An increase in conflict across functions is thought to be a negative internal organization factor. Incompatible goals and tension between individuals in different functions, sales and manufacturing, for example, have been shown to negatively impact organizational performance. An increase in connectedness across departments as measured by the easy flow of communication between departments and a low level of tension among members of each department has been shown to contribute to improved organizational performance.2 Implementing BPO as a way of organizing and operating in an organization will improve internal coordination and break down the functional silos that exist in most companies. Research has shown that this increase in cooperation and decrease in conflict improve both short- and long-term performance of an organization.
Why is it Important to Improve Business Processes Before Automating Them?
Published in John Jeston, Business Process Management, 2022
So, when confronted with productivity, efficiency, and business control issues today, our first temptation is to buy an automated solution to our problem or outsource it via BPO (business process outsourcing). This has been reinforced by the benefits that communication technology has opened up for processes through channels such as the Internet, mobile technology, cloud-based technologies, and process outsourcing.
Global Procurement and Its Impact on the Lean Supply Chain
Published in Paul Myerson, Lean Demand-Driven Procurement, 2018
This is not limited to just outsourcing manufacturing and supply chain operations, but also includes business process outsourcing (BPO), and information technology (IT) services that are supplied from a variety of locations, as well as other knowledge-intensive activities, such as R&D.
Six Sigma to reduce claims processing errors in a healthcare payer firm
Published in Production Planning & Control, 2020
Vijaya Sunder M, Nidhin R. Kunnath
Business Process Outsourcing (BPO) involves contracting the operations and responsibilities for a few specific business processes from a parent organization to an offshore service provider (typically third-party service providers). It can be defined as ‘an organization entering into a contract with another organization to operate and manage one or more of its business processes’ (Sharma 2005). A commonly used term ‘offshoring’ is a type of outsourcing when parent companies hire overseas third-party service providers or transfer work to the same company located in another country (Crogan and Evans 2013). An overview of operations strategy literature shows a theoretical evolution from transactional cost-analysis (Coase 1988; Hajli et al. 2015) and agency theory (Eisenhardt 1989; Walker et al. 2015) to a resource-based view (Bromiley and Rau 2016), which supported outsourcing non-critical activities to emerging countries, keeping critical activities internal to the parent organization (Peisch 1995; Quinn and Hilmer 1994; Prahalad and Hamel 1990). Several non-critical activities in departments like finance and accounting, payroll services, customer care services and human resources operations are commonly outsourced in firms. More recently, the transformational view (Linder 2004; Burnett 2016), places outsourcing as a strategic resource that enables a redesign of organizational value chain (Schneller and Smeltzer 2006; Turkulainen and Bals 2016).