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Accenture Veers Away from the Term “Outsourcing”

by: Sarah Joson

Friday, April 11, 2014 | Outsourcing News |

Dropping the term Outsourcing

A post at EnterpriseIrregulars.com sheds light into the game-changing move of global IT and consultancy leader Accenture. It was recently reported that the company has shun away from the term "outsourcing", and is now using a new strategy line "Strategy, Digital, Technology, Operations", instead of their decade-old line "Consulting, Technology, Outsourcing".

The decision to drop the term "outsourcing" is in line with the firm wanting to put emphasis on their services that go beyond business process outsourcing (BPO).

Through the eyes of the public, outsourcing is still an ambiguous subject that has created an unstable environment for consultants, providers, and global clients. Since outsourcing is still somehow associated to negative practices, teaching and instilling facts such as the many ways it can help improve and extend operational capability and productivity have become an endless battle.

Accenture, a key player in the outsourcing industry, is the last of the pioneers that worked with and used the term outsourcing. Now that it is starting to veer away from the brand/term, what is going to happen to the rest of the sector?

Renowned providers were seen replacing the term "outsourcing" with: "operations" for Accenture, "business process services" for Cognizant, while Dell, Capgemini, Infosys, Sutherland Global, and Wipro call it "BPO". Genpact uses "business process management", ADP uses "human resources BPO", EXL uses "business process solutions", while WNS refers to it as "business process management".

 All in all, what matters is how potential clients understand the delivery model and the benefits it brings to an enterprise. Accenture’s move of changing outsourcing maybe significant for rebranding and realigning strategy, but it will still depend on how it will be perceived by consumers.

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