On Integration, Collaboration, Empowerment

What’s wrong with BPO?


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.

One Response

  1. Shoring Up The Cloud | Nipendo Supplier Cloud

    […] In my next post I will delve deeper into how you define the richness of your network’s partnership from a P2P standpoint, and what it means to your bottom line.  In the meantime I would invite you to check out an earlier post I wrote on the subject of Business Process Outsourcing. […]

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