Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According to BusinessWeek Online, worldwide spending on IT services and outsourcing are expected to modestly grow through the end of this decade. Growth in business-process

According to BusinessWeek Online, worldwide spending on IT services and outsourcing are expected to modestly grow through the end of this decade. Growth in business-process outsourcing (BPO)the practice of hiring a third party to administer and manage functions ranging from human resources and management training to sales, marketing, finance, and accountingis projected to be particularly strong, reaching $200 million by the end of the decade. Competition among firms in the BPO market is already strong. Companies based in the United States include Electronic Data Services (EDS), Affiliated Computer Services, and Automated Data Processing (ADP). A number of Indian companies, however, also provide worldwide BPO services, such as Infosys, Wipro, and Satyam Computer Services. The BusinessWeek article suggests that BPO can save end-users anywhere from 15 to 85 percent. This contrasts to traditional IT services, which alone offer a savings range of 10 to 15 percent. International BPO service providers are particularly attractive since offshore labor offers an additional 25 to 30 percent cost savings. Furthermore, approximately 25 percent of the cost savings results from BPO firms' proprietary products. The remaining 10 to 30 percent in cost reduction accrues from consolidated operations. Suppose you are the manager of a U.S.-based company and must decide whether to outsource your human resources department. Outline arguments supporting and opposing a decision to outsource this function of your business. From a purely business standpoint, do any issues arise from contracting with an international-based versus U.S.-based BPO service firm? Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions