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Although Business Process Outsource increases the flexibility of organizations, management needs to be careful with the implementation of the process. Some tend to change their attitudes, personalities and character on how the way they talk to other clients. Although BPO has many potential advantages there are a few stumbling blocks, which could counter these advantages. Among problems which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges. When BPO does not work out as planned the company might well experience the way in which BPO makes a company very dependent on a vendor and therefore very inflexible. Consequently, these challenges need to be considered before a company or a vendor decides to engage in business process outsourcing

Learning Outcomes:

  • Developing an Outsourcing Strategy
  • Determining suitable candidate activities for service agreements
  • Outsourcing procurement
  • Identifying and stating service requirements
  • Minimum requirements for service contracts
  • Developing service levels
  • Managing ICT service contract

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