Business Process Outsourcing: An Emerging Business Strategy

by Robert C. Reynolds Jr.

Business process outsourcing (BPO) is a corporate strategy that is gaining in popularity. Given the economic and governance challenges facing so many of today's organizations, the emphasis that many companies are presently placing on BPO strategies highlights the significance of this strategy and perhaps forecasts even more activity in the BPO area as the business community moves past these challenges. The consensus forecast calls for a dramatic increase in BPO projects over the next several years. Estimates report that the internal cost of outsourced business processes is twice the cost of corresponding IT services. This suggests that a BPO strategy offers significant opportunities for substantial cost savings.

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Business Process Outsourcing: An Emerging Business Strategy November 2002