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Transactional 90% of BPO deals. ... In great shape, but it's not a core process. candidate for business transformation, but it's a good candidate for outsourcing ... – PowerPoint PPT presentation
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Title: www.managingoffshore.com
1
Breakthrough BPOs Worth the Business Risk?
Outsourcing WorldJune 16, 2004
www.managingoffshore.com
Rusty Weston Editor, Managing OffshoreEditor,
InformationWeek Research
rweston_at_cmp.com
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The Perception
www.managingoffshore.com
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Transformational vs. Transactional
- Transactional gt90 of BPO deals. Includes many
typical, discrete, back office processes,
including claims processing, payroll checks,
accounts receivable - Transformation is a much higher standard. Calls
for radical business change. Its disruptive
risky.
www.managingoffshore.com
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From Basic to Breakthrough
- Mortgage consumer call centerobtain customer
analytics, outbound sales lower cost of sales - HRO claims processing leads to J.V., shared
services profits - E-Procurementconsolidating disparate systems,
employees standards, quality, predictable
reduced costs
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BPO Litmus Test
- E-procurement Deutsche Bank AccentureConsolidat
ing disparate systems onto one centralized
procurement system - We want Accenture to do something
transformational, Tariq Hassan, global head of
purchasing, Deutsche Bank
www.managingoffshore.com
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The Right Conditions
- Its a broken process, needs fixing ripe for
business transformation - In great shape, but its not a core process ?
candidate for business transformation, but its a
good candidate for outsourcing
www.managingoffshore.com
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Seven Signs Youre Ready
- Jane Linder, Accenture Research Fellow, In
Outsourcing for Radical Change 1.
Competitiveness2. Speed a critical factor3.
Willing to personally sponsor4. Accept a
difficult transition5. Lack people skills6.
Will to partner, cede control7. Share benefits
with partner
www.managingoffshore.com
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Fixed vs. Variable (TM)
Flexibility
Price Protect
Least Risk/You
Least Risk/Them
Complex Jobs
Simple Jobs
Vendor Profit
www.managingoffshore.com
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Contract Best Practices
- TCs, Master Services Agreement, SLA
- Request Audits, COPC or other pertinent
certifications especially for customer data
handling - Due Diligence, Credit Checks, Employee Checks
- Competitive Bids
- Incentives are Critical to Success
- Risk Averse? Try firm with a U.S. or U.K. parent
www.managingoffshore.com
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This Isnt Fun, But
- Take Before After Measurements
- Service Activity
- Business Activity
- Why Bother? Process Controls, ROI
www.managingoffshore.com
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Breakthrough BPO
- Upside Your back office is a providers front
office - Business, political, regulatory conditions change
quickly so flexible contracts are key to
long-term success - Strategy is a necessary component set it up so
that it delivers business transformation, not
just the most risk averse outcomes possible
www.managingoffshore.com
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Managing Offshorewww.managingoffshore.com
- How to succeed at offshoring -- captive or
outsourced operations - In-depth reports featuring best practices in
areas such as sourcing services, vendor
management contracts, legal regulatory
issues, cultural competencies, change management,
risk management - Contact editorial rweston_at_cmp.com
www.managingoffshore.com
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