Business Process Outsourcing –Need of Today (With Reference to Make or Buy Decision)

  • Dr. Jaya Tripathi Assistant Professor , Institute of Business Management, C.S.J.M. University Kanpur
Keywords: Business Process Outsourcing, Make or Buy Decision


A Common problem usually faced by a manufacturing company is whether it should make all the components itself or buy source of them from outside sources. A company has competitive advantage whenever it has an edge over rivals in attracting customers and defending against competitive forces. Competitive advantage is derived from the key term cost advantage. Price cutting supported by cost advantage. That’s why companies may arise a question whether it would be worthwhile to buy from outside rather than make it .The solution for this huge question may be make or buying or Business Process Outsourcing. Business Process Outsourcing has been recognized as a means of achieving organizational strategy. The Harvard Business Review identified outsourcing as one of the most important management ideas of the last 75 years. In simple words we can say that outsourcing is "the transfer to a third party of the continuous management responsibility for the provision of a service governed by
a service level agreement." The benefits of outsourcing fall into two categories: immediate gains (e.g. service cost reduction, focus on core services thanks to an "eyes on, hands off" mode), and longer-term benefits (e.g. flexibility, access to expertise, improved quality). In this paper an attempt has been made to focus on current trend and the need of Business Process Outsourcing in the current business Scenario.

How to Cite
Dr. Jaya Tripathi. (2020). Business Process Outsourcing –Need of Today (With Reference to Make or Buy Decision). Management Insight, 6(1), 42-49. Retrieved from