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Straight To The Bottom Line by Shelley Stewart, Michael Katzorke, Douglas Smock, Robert Rudzki

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23

Outsourcing

When and Where It May Make Sense

What is business process outsourcing (BPO), and when might it be worth considering?

BPO is typically defined as “the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers, and manages the selected process based on defined and measurable performance criteria” (Gartner definition). As we will see shortly, current developments in procurement BPO are causing that long-standing definition to look a little out of date.

BPO has been receiving increasing press coverage in the last few years, as major BPO contracts have been awarded by household-recognizable companies. Ingersoll-Rand, Goodyear Dunlop (Europe), Deutsche Bank, and Avaya (one of ...

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