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Business Process Outsourcing

A POIN. COUN ERPOINT DISCUSSION. between. Business Process Outsourcing. What Lies Beneath. Akshaya Bhargava MD and CEO, Progeon. Srinivas Uppaluri Infosys Technologies. 1. Offshoring reduces control over business processes.

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Business Process Outsourcing

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  1. A POIN COUN ERPOINT DISCUSSION between Business Process Outsourcing What Lies Beneath Akshaya BhargavaMD and CEO, Progeon Srinivas Uppaluri Infosys Technologies

  2. 1 Offshoring reduces control over business processes Offshoring actually increases the level of control through stringent SLAs and better process metrics in the business processes

  3. 2 Other global destinations will emerge and diminish India’s attractiveness over time India’s advantages in BPOare sustainable

  4. 3 The western economies will become more efficient overall and benefit significantly through offshoring Loss of jobs due to BPO will mean greater regulatory hurdles over time, which will limit the growth of the offshore BPO industry

  5. 4 BPO is a quick way to reduce costs and improve profitability BPO will not provide quick wins but it is a strategic opportunity to make significant and lasting gains over the long term

  6. 5 It is better to Offshore processes before re-engineering them Re-engineering needs to take place before offshoring

  7. 6 BPO is going the dot.com way, there is too much hype BPO is not a bubble and has a very substantive value proposition

  8. 7 In the long term the best BPO companies will also be the biggest In the long term BPO will become a highly specialized business where size will not matter

  9. 8 Single vendor in offshoring enhances accountability and maximizes client leverage Multiple vendors mitigate operational risk and ensure continuing cost competitiveness

  10. 9 Offshoring to vendors who have no existing clients in the relevant business area increases offshoring risk There is minimal risk in being the first customer as long as the vendor has the general domain knowledge and strong process expertise

  11. 10 An integrated value proposition sounds great but there is no evidence to prove it works Customers are increasingly looking for vendors who can provide an integrated IT and Operations value proposition

  12. 12 Indian vendors will lose out when the global BPO providers enter India The global BPO vendors cannot match the cost effectiveness of Indian competitors

  13. 13 BPO will drive technology Technology will drive BPO

  14. 14 Effective change management can help create adequate buy-in within the organization for BPO Organization-wide buy-in for BPO is a fallacy – it can never be achieved

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