By Vipul Doshi, The outsourcing model has undergone several changes over the past few decades. At the turn of every decade, with increasing complexity and competitiveness in the IT-BPO industry, outsourcing models have witnessed transformation in order to deliver value to clients. I recently spoke at the Global Services BPO Summit 2012 where I was asked to set the tone of the session ‘Business Transformation – Understanding the Next Generation Models’ along with BPO guru Mr. Raman Roy, Founder & CMD of Quatrro Global Services.
Some clear pointers that emerged from the discussions at the summit were opportunities in disruptive innovation, leveraging India’s ability to scale, exploring the potential of platform-based BPO and developing leadership talent. I believe transformation in the industry is driven by a number of needs: continuous product innovation reduced time to market and increased flexibility in service delivery. It is very important that you stay focused on customers, and on how their requirements and consumption patterns are changing. Clearly, technology is one of the key drivers for business transformation.
Today, technologies such as cloud computing, business analytics software, social media platforms and process automation software are being used within BPO’s to enable them to lower costs and be more effective. Effective technologies and architectures contribute to cost reductions and more efficient operations by streamlining the systems environment and reducing the number of systems involved, often standardising the technology environment on a unified, centralised platform.
According to a recent research by Nasscom, 80% of the incremental growth will have to be driven by new segments like SMEs, emerging geographies and vertical depth. This makes it necessary for businesses to transform their existing models to one in which they develop business functions with in depth capability and proprietary IP tools.
The customer of today desires applications that have near zero time to market and provides tangible business outcomes. This will likely change the BPO landscape and the business spends to be re-allocated to initiatives that help customer with concrete and tangible outcomes.
The watchword for the next generation in BPO is ‘business value’. Service providers have to deliver complex business outcomes that go beyond mere cost savings easily achieved through automation and process re-engineering.