The changing relationships of buyers and suppliers
"We're looking forward to a lasting business relationship with you."
A combination of supplier and buyer maturity is changing the nature of Business Process Outsourcing (BPO) relationships. Today, there is a stronger focus on long-term road mapping and envisioning. There has also been a realization amongst both suppliers and buyers that a partnership is more powerful than the supplier/vendor approach.
Buyers now want to develop a mutually beneficial long-term business with their suppliers. This means matching supplier objectives to their strategic objectives. This change has directly influenced the supplier selection process; which has become more focused on mutual assessment.
Today, supplier selection is comparable to a courtship leading to marriage; rather than a dating game. Buyers now have to assess an ever-changing supplier landscape when selecting their service provider. Evolving market dynamics continue to drive changes in each functional area where suppliers continue to enter and exit the market. Even new buyers are more sophisticated than they were only three years ago. Buyers expect more service capabilities from their suppliers now more than ever.
To date, buyers have preferred the best-of-breed model for BPO; though scope aggregation is prevalent when it comes to their existing suppliers.