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Business
Process Outsourcing
“How will your organization prioritize
the allocation of its resources to focus on core activities?”
Business Process Outsourcing (BPO) is the contracting of
a specific business tasks to a third-party service provider.
BPO has become a common practice among leading organizations,
particularly for those processes that have highly mature
outsourcing vendor markets. Payroll, for example, has been
outsourced in over 55% of 212 organizations that participated
in a recent study 1.
While BPO is widely viewed as primarily a cost-cutting initiative,
and does often result in significant cost savings, NexGen
Advisors utilizes BPO as a means to focus an organization’s
resources on value-added activities. Specifically, NexGen
Advisors sees the following strategic and financial benefits
of BPO:
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Provide
ability to focus on core business functions and rapidly
achieve best-in-class delivery of non-core services |
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Introduce
a flexible cost structure as organization acquires,
divests, grows and deals with business cycles |
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Catalyst
for transformation, driving large-scale behavioral
change |
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Facilitate
investments in processes and technology that otherwise
may not receive priority within the organization |
NexGen Advisors can help your organization implement BPO
by conducting an Initial Opportunity Assessment. This assessment,
led by NexGen’s experienced outsourcing specialists, will
help your organization to:
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Identify
towers that could be outsourced |
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Match
the potentially outsourced towers to the capabilities
in the market, providing expertise on the market and
service maturity of all processes |
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Assist
the client in gathering information and data, in a
manner consistent with the expectations of an outsource
provider |
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Utilize
the Core Competency Model to identify core and non-core
processes |
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Integrate
the BPO initiative into the larger framework of corporate
transformation, to help in the design of the future
organization |
Following the Initial Opportunities Assessment, NexGen can
also facilitate the selection of a third party advisor to
assist in the full implementation of BPO. This process begins
with the development of Requests for Proposals (RFPs) and
ends with the actual transition to a third party vendor.
NexGen’s Advisors provide significant value to an organization
throughout a BPO initiative, drawing both on their extensive
experience with the BPO process and their wide-ranging knowledge
of the outsourcing vendor market.
Legal/EHS–High Level Core Competency Assesment
Example
of the core competency model
1 Matengula, Lawrence and Campos,
Krystl, Benchmarking the Finance Organization, Finance & Management,
Feb 2007, pp 10-12. |
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