Business Process Outsourcing Essay Example | Topics and Well Written Essays - 500 words

Business Process Outsourcing - Essay Example One I take this opportunity first of all to commend you for the good job you are doing in the senate as our representative. Secondly, I wish to draw your attention to an important subject that is of core concern to your people – the issue of outsourcing. Outsourcing basically involves contracting out non-core business functions to a provider external to an organization. In other words, when two organizations enter into an outsourcing agreement, one agrees to exchange a certain service or set of services for payment by the other. Outsourcing is also commonly known as offshoring, strategic outsourcing and off shore outsourcing. Outsourcing has become a major practice in many a developed country, thanks to the recent developments in online technologies. Through such technologies, people across the world have built profitable and sustainable businesses that are may be managed from virtually any location in the world. As a matter of fact, many small businesses have grown and thrive on legitimate online activities and to the benefit of larger organizations domiciled hundreds or even thousands of miles away. Advantages and Disadvantages of outsourcing There are a number of reasons why organizations choose to outsource some of their services. Some of the main reasons include saving of costs according to Gamerman (15). Costs are saved when the outsourcing organization enjoys benefits such as reprising, cost restructuring and through labor arbitrage.