Flynn 2008 - Business Process Outsourcing in a...

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Business Process Outsourcing in a Pharmaceutical Company By Anna E. Flynn, PhD Presented by Brantley Heron and Mike Haugh
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Overview Business Process Outsourcing – external party performs certain processes and/or subprocesses for a company BPO can include: Core business process (ex. Human Resources) One subprocess (ex. Payroll) Bundle of subprocesses (ex. Payroll, Benefits, and Training) – This is a growing trend Critical Decision Points include: Which processes can be outsourced? Can subprocesses be bundled with one provider? Should the provider be onshore or offshore? Which provider(s) should be used?
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Interesting Points The decision-making process was designed at a Pharmaceutical Company Forum. Although the process was determined for a particular industry, it can be used universally for any business looking to outsource business processes. The article takes the steps of the process and walks through a specific Pharmaceutical Company’s experience using the process.
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Outsourcing Decision-Making Process Step 1: Assess outsourcing opportunities based on (1) fit with organizational strategy, (2) the organizational risk profile and (3) projected impact on key organizational metrics. Step 2: Assess drivers and benefits from stakeholders’ perspectives Step 3: Assess the complexity of the business process to develop the scope of work Step 4: Determine resource allocation Step 5: Assess results Step 6: Ensure knowledge transfer
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Step 1: Assess Outsourcing Opportunities Outsourcing should fit with organizational strategy, but is often overlooked during strategy development. Risk Factors to be considered:
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Flynn 2008 - Business Process Outsourcing in a...

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