Why is BPO a key area of focus for large companies?
• Most of the back-office infrastructures of large firms were built for a previous era – preglobalization, pre-Internet, and pre-M&A. They must change quickly to meet the need for economies of scale and higher competition. For the large firm, the benefit of BPO is access to best practices, which in turn enables improved efficiency and substantial cost savings. • BPO makes sense in a fast-moving world where management attention needs to be on critical operational processes and where management talent is scarce. Doing fewer things well and delegating what’s non-core externally is strategically crucial. Back-offices, while important, are largely non-core. • Corporations are ready for BPO.
