The shift from cost savings to a strategic approach

Value propositions around process enhancement, technology innovation, industry focus, and business performance are becoming more prevalent. This results in the ability to create closer ties between Business Process Outsourcing (BPO) operations and business impact.

Why is this happening? We believe there are six reasons:

• Increasing supplier competition
  In these tough economic times, suppliers are working even harder to come up with out-of-the-box solutions to help their customers solve their business challenges.
• Buyer readiness
  Buyers are now ready for a broader value proposition. They are comfortable with BPO and are ready to expand their offerings if it improves their bottom line or customer service.
• Economies of scale
  Suppliers can now offer end-to-end solutions. These maturing offerings are now more relevant and appeal to a larger segment of buyers.
• Closer links with business impact
  The expanding scope of the services shifts the focus from cost to effectiveness. Also, the use of new tools and technologies enhances buyers’ analytic capabilities. Increasingly, suppliers are driving solutions from data exchange to automation to outsourcing business intelligence and analytics.
• Role of technology
  Suppliers have to differentiate themselves in today’s crowded marketplace. Buyers and suppliers alike are engaging in a more complex and sophisticated selection process. Technology is the suppliers’ secret weapon; they are using proprietary technology and intellectual property as a way to woo buyers to their solutions.
• Market experience
  Offshore outsourcing has gained acceptance; especially around standardized transactional work. Buyers have actual experience with sending work offshore. They can quantify the actual savings they netted. At the same time, suppliers are more willing to take a consultative approach.