Itbpo3 Module 01
Itbpo3 Module 01
Itbpo3 Module 01
Lectures, class discussions, individual as well as group presentation will also be used to
bring the concepts to life. In the course of practical discussions, the rationale for
outsourcing, how companies determine which process are ready for outsourcing, and
the associated costs-benefits along with risks will similarly be drawn out.
Application Management
Capacity Management
A process used to manage information technology (IT). Its primary goal is to ensure
that IT capacity meets current and future business requirements in a cost-effective
manner.
Contact Center
Data Center
Computer facility designed for continuous use by several users, and well equipped with
hardware, software, peripherals, power conditioning and backup, communication
equipment, security systems, etc.
Helpdesk
Outsourcing
Any task, operation, job or process that could be performed by employees within an
organization, but is instead contracted to a third party for a significant period of time.
The graph shows a clear upward trend and growth projection for the country.
The “Percentage of GDP (Gross Domestic Product) is the industry’s direct contribution
to financial growth of the country.
The current nationwide challenge and opportunity is to consistently and reliably provide
highly skilled and professional “homegrown” personnel.
This is a golden opportunity for each of you to join this very progressive, dynamic, and
financially robust industry as a means to grow personally, professionally and
economically, at the same time, actively contributing to the overall growth and
development of the country.
Definition of Outsourcing
Every time we buy something from somebody rather than producing it ourselves, we
have essentially “outsourced” the production of that good or service.
Any task, operation, job or process that could be performed by employees within an
organization, but is instead contracted to a third party for a significant period of time is
what we call outsourcing. Another definition of outsourcing is contracting of a service
provider for the delivery of a process or service.
Capacity management has to do with the associated manpower and related expertise
of that workforce. Try to imagine how many employees Globe, Smart, or Sun
Cellular would need if they did not source out their mobile phones for their
subscription plans and decided instead to manufacture their own phones. If our
network operators decided to do this there would be an immediate impact on the
next item – cost.
2. Lower Cost
- Replace expensive local or in-house resources with less expensive resources
from external service providers
- Tax differential or government incentive programs in other locations leading to
lower cost.
3. Better Performance
Use of specialized external providers which can deliver service with better quality,
innovation, in new platform:
- Sales force providing web-based sales management
- PeopleSoft providing employee-facing tools
Better performance has to do with manpower and the associated expertise of that
workforce. A known appliance manufacturer, Panasonic, entrusts the selling of their
products to distributors like SM Appliances or Abenson so they could focus more
on their core activity which is manufacturing.
5. Part-Based Activities
- Automobile components
- Cruise-ship rooms
This work segmentation allows for numerous benefits such as; greater degree of
control, inventory management, troubleshooting, and, forecasting to mention a few.
Each example presented essentially boils down to one company (let us call this
company, Company A) leveraging technical advantages of another company (let us
call this company, Company B). Company A, potentially being a “smaller”
company, can opt to engage Company B in a business agreement to allow Company
B’s superior technology and/ or superior expertise to fulfill on outputs that might
otherwise overwhelm Company A.
3. IT Services
Application Maintenance and Management. Take for example our very own
National Bureau of Investigation (NBI). The NBI contracted a vendor to handle its
database. Internal employees may not have the skills to do such task but with the
help of another company, NBI no longer has to worry about their database.
Production/ Data Center Operations. Perhaps two industries that popularly use this
service would be the banking industry and medical industry. More specifically with
banking credit or fraud operations, and, with medical it would be with
transcriptions.
Production Technical/ Systems Support. For this service we would look to both
providers and users; of engineering services and computer servers.
Helpdesk. This is perhaps the most common service known to many of us. This
basically takes the form of having a group of agents fielding incoming calls of a
potentially wide variety. Some of these are inquiries on flight bookings, status of a
parcel on a trans-continental shipment, status of cable or mobile phone subscription.
Software as a Service. The digital age is truly maturing at a tremendous rate thanks
in large part to advancements in both hardware and software. Nowhere is this most
evident than in corporations. The technology is finding its way to average
consumers as well. Take for example corporate solution applications that allow for
online video conferencing or virtual classrooms involving multiple participants
“calling in” from different time- zones and countries without the need for
specialized hardware to view a presentation shared by a presenter who for all we
know is at home but who is remotely accessing his or her files from the company
server.
Online or Cloud Services. If you have any of the following email accounts or a
combination therefore you are online or using Cloud Services. Gmail, Yahoo, and
Hotmail or Windows Live accounts all provide you with some form of what is now
called “cloud” storage. Similarly, Apple, Android, and Windows Phone users are
given access to an online storage facility. Your account profile, preferences, and
settings are handled in an automated fashion by a system that is routinely
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maintained by programmers granted administrator status. Similarly your account
activities are not completely invisible. If you download free applications, an
administrator of that service provider knows your complete download history.
Every coin has two faces. And in this instance advantages and disadvantages goes both
ways – to the company or the employer, as well as to the employee.
Service provider may have more expertise/ capability that the buyer.
Accounting. Global companies like Citi and JP Morgan Chase & Co are prime
samples of service providers that execute to the highest standards with regard to
a highly confidential subject matter – the financials of a client.
Technical infrastructure. The service provider has a sizable and proven capacity
for online storage, data processing and data connectivity.
Human Resources. This item does not exclusively refer to the sheer volume or
number of warm-bodies. But more importantly it refers to the associated
knowledge, skills, competencies and professionalism of those human resources.
It shows the benefits given the Filipino’s value and appreciation of the close-
knit family system.
Professional Growth
You are potentially able to expand your business expertise as you interact in
different group settings, work with professionals of different ethnicity, cultural
background, and, management style. This exposure and experience is a
wonderful learning opportunity.
Financial Independence
More often than not entry-level salaries in the IT- BPM industry are
significantly more attractive than entry level positions in other industries. This
holds true even in instances wherein the job function is primarily similar. Many
industries aggressively incentivize their staff in sales. Often being in sales
requires personnel to a lot. They transport sample products and marketing
materials. With the advancement of telecommunication, sales specialists can
accomplish their task by communicating with customers via online platforms
and the phone.
Employee Assistance
The last item though seemingly funny and simplistic is a key social activity in
our culture. Eating for us Filipinos is an opportunity to strengthen relationships
– at work, with friends and at home. Incentives may include opportunity to savor
your favorite dish.
Example: Can your agency provided office provided office assistant also do this
extra errand – bring pet to the vet clinic, bring clothes to the dry-cleaner, pick-
up kids from school?
Solution: Do not use outsourced office assistant like your personal assistant
The people doing the work are limited to the requirements of the job being
outsourced to them.
A shifting schedule with the possibility of working at night can easily be viewed
as a disadvantage. However, what this scheduling opens up for many is the
opportunity to pursue other activities during the day. For many members of the
IT-BPM industry this means; participating in community development
initiatives, supporting charities, helping out and supporting a family venture, or
simply enjoy their favorite fitness facility without the throng of other patrons
who still happen to be in school or at work. These are just a few benefits.
Dealing with irate customer is not unique to the IT-BPM industry. This situation
can arise fifty percent of the time in any transactional relationship. What is
certain is that you will receive expert training on how to effectively handle such
situations. In instances that you may require support or upon a customer’s
request, your peers – supervisors and managers are committed to deliver –
customer satisfaction. They will develop your skills to perform your job with
greater independence. Lastly, many companies provide for facilities and
activities to help employees handle work-related stress. There are game rooms,
break-out rooms to power nap, a basketball court, video gaming consoles, a
meditation room, a clinic or infirmary, having an anti-burn out party, having
sporting competitions, and many more. These are all prime examples of
facilities and activities geared towards better employee well-being.
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V. Teaching and Learning Activities
1. Interview any one (1) of the following: a Site Director, an Operations Manager, a
Team Leader or Supervisor. You may submit as a video or audio file.
2. Visit an IT-BPM or BPO company and secure the following information and/ or
documents: company brochure, company vision and mission, total manning/ head-
count and on-going corporate social responsibility programs.
3. Interview three (3) people – friends, neighbors, brother, sister, who currently works
at an IT-BPM or BPO company. You may submit this as a video or audio file.
If you opt to fulfill number one (1) the interview does not need to happen on
company premises
If you opt to fulfill number one (1) ask your interviewee to provide information to
the following:
o Name
o Position
o What do you like the most in being connected with your current employer?
If you opt to fulfill number one (1) and submit this as a video, do the following:
o Make sure that you are visible in the beginning and ending segments of the
video
o At the beginning of the video with you in focus state your name and ID
number
o At the end of the video, make sure to state the date, time venue of the
interview, thank your interviewee and mention their full name, position, and
name of employer
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If you opt to fulfill number one (1) and submit this as an audio file , do the
following:
o Make sure that you clearly state your name and ID number at the beginning of
the interview
o And at the end of the interview, make sure to state the date, time, and venue of
your interview, thank your interviewee and mention their full name, position
and name of employer
o Make sure to include the following information: your full name, your ID
number, the date you completed your assignment, the name of your
professor, and the title of your assignment
If you opt to fulfill number three (3) the interview does not need to happen on
company premises
If you opt to fulfill number three (3) ask your interviewee to provide information to
the following:
o Name
o Position
o What do you like the most in being connected with your current employer?
o Make sure that you are visible in the beginning and ending segments of the
video
o At the end of the video, make sure to state the date, time and venue of the
interview
If you opt to fulfill number three (3) and submit this as an audio file, do the
following:
o Make sure that you clearly state your name and ID number at the beginning
of the interview
o And at the end of the interview, make sure to state the; date, time, , venue of
the interview, thank your interviewee and mention their full name, position
and name of employer
If you opt to fulfill options one (1) and/ or three 3) and are physically, logistically,
and, technically unable to provide audio only and/ or video only recordings, then the
following apply:
o Whichever the option may be; solicit the following from your interviewee
for verification purposes:
Quiz No. 1
Instruction: Match Column A with Column B to identify what specific reason for outsourcing
is described.
Column A Column B
_____ 1. Replace expensive local or in-house a. Capacity management
_ resources with less expensive resources b. Lower cost
from external providers. c. Better performance
_____ 2. Greater output from work being done d. Fast and continuous
_ around the clock service
_____ 3. Need to acquire/ buy/ hire capacity e. Part-based activities
_
_____ 4. Use of specialized external providers
_ which can deliver service with better
quality, innovation in new platform
_____ 5. Segmentation of work where each
_ assembly line has its own specialized
personnel, equipment or machinery, raw
materials, and cycle time.
Quiz No. 2
Instruction: Match Column A with Column B to identify what specific reason for outsourcing
is described.
Column A Column B
_____ 1. Small vendors using Amazon.com a. Support or auxiliary
_ services
_____ 2. Production/ Data-Center Operations b. Routine activities or
_ activities that can be
_____ 3. Janitorial services automated at larger
_ centers
_____ 4. Cafeteria c. IT services
_
_____ 5. Application development
_
Quiz No. 3
1. What is outsourcing?
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2. What are the five (5) types of outsourced services as presented in the IT-BPM
industry snapshot of the Philippines
3. Name three (3) reasons why companies outsource?
4. Enumerate five (5) functions that can be outsourced?
5. Give two (2) advantages and two (2) disadvantages of outsourcing from an
employer’s perspective.
6. Give two (2) advantages and two (2) disadvantages of outsourcing from an
employee’s perspective.
IX. References
Books
2013. Fundamentals of Business Process Outsourcing 101 Teacher’s Guide. Talent
Development, IT and Business Process Association of the Philippines
2013. Introduction to BPO. Jaipur National University, Jaipur, India
Online
http://searchcrm.techtarget.com/definition/contact-center
http://www.investopedia.com/terms/k/knowledge-process-outsourcing.asp
http://www.investopedia.com/terms/c/capacity-management.asp
http://www.techopedia.com/definition/28008/application-management-am
http://www.businessdictionary.com/definition/data-center.html
http://operationstech.about.com/od/glossary/g/Outsourcing.htm
http://www.businessdictionary.com/definition/help-desk.html