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LATEST THINKING


The BPO advantage: Reinvent your business with the right technology

Innovative technologies combined with a service-based approach can help drive growth and build a competitive advantage.

Overview

It’s no exaggeration to say that technology lets you do just about anything you want, anytime you want. But two initial questions emerge:

  1. What do you want to do?

  2. And how are you going to do it?

With services available on demand, how can businesses put all the pieces together coherently? How can they design the organization and its component parts, staff it and govern it?

Drilling down further, we see opportunities to create a “business process outsourcing (BPO) advantage.”

Business processes are essentially the operating system for the entire organization, and BPO provides a model for how to source multiple IT-enabled services and integrate them into a whole greater than the sum of the parts

It’s no longer possible to separate “the technology” from “the business.” We need to articulate their challenges from both angles.

Analysis

As business leaders increasingly harness the power of technology, they’re rethinking digital strategies.

IT has become a driving force—in many cases, the driving force—behind growth across industries.

With cloud architectures, BPO is moving into its fifth generation—characterized by on-demand services applied across multiple clients.

The “process cloud” uses a common, one-to-many platform to automate highly standardized processes.

It differs from application clouds by providing end-to-end process support, covering not just software but also people processes—such as contact centers.

Cloud, mobile and collaboration technologies will help BPO to evolve into its next generation.

Business people are increasingly using such technologies to build communities where members share experiences and best practices and learn from one another.

The future will bring even more collaboration and the tools to achieve it.

Recommendations

Leveraging the right technologies, processes and providers to redesign a business requires a significant change in mindset.

The ecosystem of technologies and providers is too complex for a business-as-usual approach.

Business leaders need architects to help them design, integrate, govern and continuously maximize the mosaic of services. They also need effective managers to broker and optimize the connections and ongoing relationships.

We believe making this governance mindset a reality requires a set of capabilities that are not typically considered part of traditional IT governance.

Now, these capabilities are part of advanced BPO services:

  • Value—A function to track business goals related to the services created or sourced.

  • Architecture—A capability to maintain a consistent and effective business and IT architecture.

  • Delivery—A group overseeing the ultimate service delivery.

BPO has already revolutionized how businesses operate. Today, BPO is also providing focus on how best to deliver value to customers and to the broader society, and how to access best-in-class services for major functions.