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Accenture’s long experience in business process outsourcing (BPO) suggests that there is an evolution through the generations from cost saving through to driving real business value using analytics, on-demand services and communities based on social-media platforms.
BPO leaders are successfully using it as a lever to promote high performance.
To obtain the most value from BPO, you need to understand your organization’s generation—read on to find out more.
Accenture’s 20 years in BPO shows that it has evolved through several generations. By understanding the evolution of BPO to date, and where it’s headed, businesses in every industry and across every sector can position themselves to maximize the value offered by BPO.
The first three generations advanced from cost savings to global delivery:
First-generation BPO. Dating from the 1990s, this was all about saving money.
Second-generation BPO. The focus moved from “lift and shift” to global delivery.
Third-generation BPO. The third generation saw an emphasis on industrialization and process efficiency in the delivery of an increasingly broad set of processes that client organizations had outsourced.
Many executives today believe that that outsourcing can add even more value, particularly in the form of innovation:
Fourth-generation BPO. Increasingly, BPO service providers are addressing the gap between reducing cost and delivering innovation by deploying analytics to extract actionable business insights from the immense stories of transactional data they have amassed during long-term client engagements. Outcomes range from accelerated speed to market, enhanced innovativeness and stronger customer loyalty to savvier talent management and top-line growth.
Fifth-generation BPO. Technologies like software as a service and mobility are catalyzing further innovation, characterized by on-demand services applied across multiple clients through flexible software platforms and commercial contract structures paired with standardized processes.
Sixth-generation BPO. Accenture believes that social media technologies will help drive a new vision, in which social media is used as a platform to build learning communities centered on processes provided via BPO. These communities would comprise multiple clients and BPO provider staff.
To discover where your company is in the evolution of BPO, consider the following questions:
If you’re currently using a BPO service provider, to what extent does the provider use analytics to identify and seize opportunities to improve your organization’s business outcomes? To what extent does it use new IT approaches to capture and deliver such opportunities?
How do you assess a BPO service provider’s potential to serve as a strategic partner for your organization?
What kinds of tools would best enable you and your BPO provider to extract actionable business insights from the transactional data generated by processes you’ve outsourced?
To what extent do your competitors use BPO services backed by analytics and facilitated by IT? What business outcomes are they getting?
How might your organization benefit from participating in the kind of online BPO learning community that could characterize BPO’s sixth generation in the future?
Accenture is recognized as a leading provider of outsourcing services—contact us to find out how we can help you use BPO to drive high performance.
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