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Business-process outsourcing (BPO) is a type of outsourcing that consists of contracting operations and responsibilities of a specific business process to a third-party service provider. Such outsourcing generally began with manufacturing firms outsourcing their supply chain but has grown into a much wider range of processes, including marketing, finance, sales, and accounting. According to a recent Forbes article, the revenue of the global outsourced services industry rose from $45 billion in 2000 to nearly $100 billion in 2012.
Question 1: Based on the above information and your study, please outline arguments supporting and opposing a decision to outsource this function of your business.
Question 2: Please explain from a purely business standpoint, any issues that might arise from contracting with an international-based versus U.S.-based BPO service firm?
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