Extended Enterprise:

Virtual Integration

Business Process Outsourcing (BPO)

Gaining process optimization, business-oriented measurements, and enhanced control over IT activities

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

"Do what you do best, and outsource the rest."

Benefits of Outsourcing

  • ability to focus on core competencies and build those focused world-class skills that directly add value to customers

  • breakthrough visibility leading to secure business operations

  • better quality of service to customers and employees

  • improved risk management

  • remarkable operational efficiencies with lower total cost, reduction of investments in non-critical assets

  • maximized IT investment

  • a way to speed up time to market by working with a partner with the expertise and capacity to bring new products and services to market quicker

  • opportunity for firms entering new markets to execute quickly with an experienced partner



The Key Points

that any outsourcer should look for before going for outsourcing

80/20 Principle

10 Golden Rules for Successful Carriers

  • Use outside contractors for everything but your core skill... More

Why Outsourcing?


Your passion is key to you succeeding. Outsourcing helps you streamline your processes making it easier to focus on your core competencies and get back to doing what you love most.

Most common reasons for outsourcing are:

  • Need to concentrate more on core competence functions

  • Increase in the number and capabilities of external suppliers

  • Difficulty in keeping up with the latest advances in technology and other innovations

  • Making the investments necessary to continually be on the cutting edge is off-putting

Balanced Approach

Although the quest for cost savings inspired initial forays into offshore outsourcing, companies are now using offshore delivery to achieve significant improvements in business performance – transforming outsourcing from a tactical and technical point solution to a long-term business strategy for creating and defending competitive advantage. The decision makers are looking to leverage global sourcing to gain long-term process optimization, business-oriented measurements, and enhanced control over IT assets and activities.1

IT Infrastructure Management Outsourcing

All organizations and departments, regardless of size, operate under similar constraints: control and reduce expenditures, enhance customer satisfaction, improve margins and increase revenues. In order to accomplish these basic, bottom-line endeavors, the enterprise must be able to accurately match budget. Estimating and maintaining the costs for IT infrastructure can be difficult. Due to either technological or human error, outages occur, and the downtime due to these outages translates into losses and potential budget and cost overruns. Studies show, IT infrastructure management outsourcing offers enterprises totally predictable costs. One of the most revealing value proposition, organizations that select outsourcing services get, will be the ability to incorporate finitely predictable budgets.3


‘Offshoring’ – the process of relocating business processes to lower-cost overseas destinations - is a growing activity. Offshoring grew from transferring simple IT software programming jobs to low-cost locations. It developed with the outsourcing of call centres and back-office activities, particularly in the financial services industry.




  1. "A Balanced Approach to Offshore Outsourcing: Gain Strategic Improvements in Business Performance", Keane Inc.,

  2. "Offshore Outsourcing: Global Opportunities in BPO", neoIT, IndiaSoft

  3. “Outsourcing : Total cost of management benefits”, Wipro Technologies