Depth of performance
In business administration, the service depth describes the proportion of a company's own administrative and administrative tasks that are carried out by the company itself.
Just as in the manufacturing industry, your own share of manufacturing a product is referred to as the vertical range of manufacture, the depth of service is the share of your own administrative and administrative activities. Is z. If, for example, bookkeeping is carried out by a tax advisor in smaller companies or outsourced to a service provider in larger companies, the company's range of services is reduced. It is expected that so-called Business Process Outsourcing (BPO) will significantly reduce the depth of service of most companies in the next few years. The motives for this procedure can lie in a strategy of relief (tactical, e.g. cost reduction) or expansion (strategic, e.g. allocation of non-core activities).
In corporate practice, decisions about the depth of service are often referred to as make-or-buy decisions. This has a wide range of effects on the competitive strategic starting position and on the structure of the company.
Individual evidence
- ↑ Hollekamp, Marco (2005): Strategic Outsourcing of Business Processes. An empirical analysis of the interdependencies and the success effects of outsourcing projects using the example of large companies in Germany. Rainer Hampp Verlag, Munich.
- ↑ http://www.bitkom.org/files/documents/BITKOM_Leitfaden_BPO_Stand_20.09.05.pdf "Guide to Business Process Outsourcing (BPO)"