TITLE

BPO Is Out, BPU Is In

AUTHOR(S)
Schwartz, Ephraim
PUB. DATE
June 2005
SOURCE
InfoWorld;6/6/2005, Vol. 27 Issue 23, p10
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article presents an outlook for business process outsourcing (BPO), a trend in the business and information technology sector in the U.S., after 2005 based from the study "Converging Trends in Outsourcing: Moving Toward the Light," by Allie Young. Companies are saying they don not want to continue to own and maintain processes and technologies that are not core to their businesses. However, BPO is still about customized business processes. A company turns over its assets, people, processes, technology, facilities to the service provider to run it. In the past, outsourcers used offshore facilities to reduce their own costs, but this has changed. It is already the customers who are demanding lower costs. The process will work for two or three years, but in short order all of the cost reduction will be wrung out of offshoring as well. The next step will be business process utility (BPU) computing. For the BPU model to work, the process or business unit owner has to accept the fact that human resource processes are not a competitive differentiator for the company. BPU is all about standardized processes and a one-to-many architecture. So whereas BPO for the most part uses a company's existing architecture, BPU does not.
ACCESSION #
17251434

 

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