If you’re looking for a lively and thought-provoking discussion on all things purchasing, Purchasing Insight is one site you should follow. It recently featured a guest post by our very own Eyal Rosenberg, titled What’s Wrong with BPO?
As Eyal argues, outsourcing is not a bad thing. It allows companies to focus on their core competencies and let others do the rest. But there are some unintended consequences. When companies outsource processes to low-cost labor, they lose the motivation to modernize the process.
When we outsource invoice processing, we settle for a short-term fix rather than challenge ourselves to innovate.
That’s when BPO becomes detrimental to long-term success. We are settling for cost reduction rather than process improvement. Read the complete post on Purchasing Insight.