Integrated IT BPO Services – Coming back stronger!

In my last post I spoke about the changing role of a CEO and how this shift in paradigm has sparked the spirit of innovation amongst young leaders. However, a recent discussion at a summit, made me understand the finner nuiances of this shift. Over the course of time, it is not just the change in leadership and innovation approach, but the way in which businesses are now being performed and executed.

As I discuss this with industry experts, I find my self nodding in agreement with the argument that companies are looking for vendors who can offer a stremlined and a simpler modus of operandi. They no more want to focus on complex solutions and multiple vendors, instead they wish to function under a much more transparent and simpler approach.They are asking for solutions that are complelling, manageable, quick and easy to understand. Solutions that not only integrate and weave togther the missing blocks, but also are able to bridge the existing gaps in an outsourcing relationship.  They have realised that integration is an important part of the overall business experience and I feel that combining  and integrating the two forms of services  (IT & BPO) will surely help organizations to stand out and achieve their goals.

The Last decade was all about  Pure Play BPOs and standalone IT vendors. While these BPOs grew from captives which were offering processing services to their parent companies , IT vendors follwed an organic growth strategy and created an separte arm for each of their operations.

Soon the  IT players entered into the BPO segment and their success was marked by their confidence to build upon their existing capabilities, the role that technology has to play in the industry, their understanding of different verticals and client needs and demands.

While nothing in the immediate future suggests that pure play BPOs will cease to exist, the truth is that unless they offer solutions that are more attractive and complete, rising margin pressures will make survival tough. With many IT companies on a look out to acquire BPO companies that can help them scale up and add to their offerings, a shakeout is inevitable.

Moreover, companies are now willing to leverage their synergies and hence are opting for consolidation of their outsourced services. What they have realized  is that this integration will not only help them to save cost, but will also increase overall acountabilty for its contribution to corporate profitability. Also, this integration will enable technology providers to eliminate  disconnects between  internal and external service providers.

For BPOs to meet this impending challenge the best way forward is to build on their existing capabilities and offerings and take on a few steps to not just improve delivery, but also add on to their service offerings, so that the client community is fast enough to recognise this value-addition.

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