Making the Right Outsourcing Decisions
Like IT outsourcing in the past decade, companies today are increasingly outsourcing business processes such as payroll, training, benefits administration, billing, logistics, and human resources. Both IT and business process outsourcing (BPO) are independent of the economic cycle -- companies outsource in bad times to reduce costs, and they outsource in good times to access new markets, compete more successfully, and grow. With the global competitive economy and mergers and acquisitions as the primary drivers of outsourcing, the BPO market alone is expected to almost double its current size in the next five years. Although outsourcing may make sense for many companies, it is not simple, easy, or risk-free.
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