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| Thought Paper |
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Outsourcing Process Improvement Implementation |
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| Abstract |
The International Data Corporation (IDC) predicted that the worldwide outsourcing market would
grow from $100 billion in 1998 to $151 billion in 2003, with a compound annual growth rate (CAGR)
of 12.2 percent.
In its widest sense, Process Improvement refers to looking at any business process from the perspective of improving its output to deliver enhanced value to its stakeholders. The intent of any process improvement is to enhance customer experience with products or services and improve productivity by removing cost out of processes. There are various facets of process improvements that one encounters as organizations mature. They range from ones, which are incremental in nature and impact pockets in organizations to those that totally reengineer processes across functions and impact the entire organization.
Today, outsourcing companies , have identified quality and productivity as the key differentiators in evaluating service providers. These parameters are of prime importance since most software solutions have relatively small payback periods. Service providers also bring complementary knowledge, ideas, and business methodologies, and enable outsourcing companies to concentrate on core competencies. These benefits in addition to cost reduction are turning the tide in favour of outsourcing.
This paper discusses the various methods organizations can use for process improvement and how outsourcing of process improvement can help in improving operational efficiencies.
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