Outsourcing Technology: Trends Shaping the Future

There are several innovations in outsourcing technology that experts predict will dramatically change the landscape of the outsourcing industry; as Beth Ellyn Rosenthal writes in her article, “Changes in BPO: How Technology Is Changing the Landscape”.

The article gathers insights from executives of major outsourcing providers, resulting in a list of several technology-dependent trends that are set to have a significant impact on BPO partnerships in the next 5 years:

Emergence of end-to-end solutions

This is made possible by the fusion of IT and BPO. Abid Ali, Vice President of Tata Consultancy Services (TCS), refers to this as "IT/BPO synergy", which some say could far exceed the savings from labor arbitrage.

Use of analytics

According to F&A IBM General Manager, Don Schulman, the advancement of analytics will enable buyers "to leverage insights into their suppliers and customers that they've never had before, allowing them to better align business decisions to their overall strategies at a much faster pace."

Platform/process as a service

Process optimization as a service is something that Abid says “meets the customer's need to upscale processes to industry best-in-class norms in preparation for growth”.

Verticalization and globalization

According to Abid, the economic recession is peaking the interests of buyers in “vertical solutions” - the outsourcing of core processes and not just non-core.

New supplier selection criteria

IBM's Schulman believes that service level agreements will become much simpler due to consolidation of the BPO industry with buyers already having built relationships with outsourcing providers.

Changes in process ownership

Schulman refers to this as the increased focus on end-to-end processes that will more effectively improve business performance in contrast to focusing solely on cost savings from labor arbitrage.

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