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BPO Enterprise Opportunities -- Status

BPO Enterprise Opportunities -- Status. Bob Shultz June 15, 2006. 1. 2. 3. 4. Why Shared Services or Business Process Outsourcing. Enterprise F&A Outsourcing Overview. Enterprise BPO Not a slam dunk BPO F&A is NOT a mature Service Hackett Slide Deck Gene Hackett Statement

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BPO Enterprise Opportunities -- Status

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  1. BPO Enterprise Opportunities -- Status Bob Shultz June 15, 2006

  2. 1 2 3 4 Why Shared Services or Business Process Outsourcing Enterprise F&A Outsourcing Overview

  3. Enterprise BPO Not a slam dunk BPO F&A is NOT a mature Service • Hackett Slide Deck • Gene Hackett Statement • F&A Top Deals List for 2005

  4. BPO F&A is NOT a mature Service BPO F&A TOP DEALS OF FY’05 • Unilever 150M IBM • US Navy 135M IBM • NiSource 100M IBM • Resolution Life 90M Unisys • Barclay 85M Siemens • New Mexico HSD 82M ACS • Wachovia 80M Genpact • Rhode Island 73M EDS • Cumbria Cnty 62M Capita • Hampshire 53M Xansa • Kodak 50m IBM • Omron 50M IBM Japanese

  5. BPO F&A is NOT a mature Service Vendor – Sourcing Advisor issues Transitions Contracts Termination fees Scoping Pricing

  6. BPO F&A is NOT a mature Service But bottom-line --- • Companies are saving 30-50%. • Suppliers are making modest profit. • The Support Services are making lots of money (Sourcing advisors, lawyers, consultants, etc… -- Taking advantage of a relatively immature market..)

  7. Real Example -- “Outsourcing Gone Wild” 1- There was a server with a defect in the NL site centre2- Repair is outsourced by the IT organization to the company’s trade repair group. 3- The trade repair group has outsourced this to IMD (a 100% owned low cost subsidy)4- IMD has outsourced activity to ABC company” (a competitor)5- ABC Company” had outsourced this type of repair to the original company’s trade repair group. So one of the original company’s engineer came and fixed it....

  8. 1 2 3 4 Enterprise F&A Outsourcing Overview How Shared Services and Business Process Outsourcing Creates Value How VALUE is created

  9. Core value drivers create a compelling case for increased adoption The core value drivers that bothBPO and Shared Servicesinclude: • Economies of scale • Economies of place • Technology enablement • Value-added services • End-to-end process improvement

  10. BPO Business Model 1.0 30 - 40% Savings 50 - 70% Savings LOW Labor Costs 30 - 40% Savings HIGH Process maturity - industrialization LOW HIGH

  11. Certifications Simplification and Standardization Quality Process Lifecycle Simple Business Model Local Process Statement ofWork Consolidated Business Cntr Operational Excellence Project Lifecycle Integrated Project Management Service Level Agreements Low Risk Transitions Knowledge Management Glide Path Programs Self Audits reviews Governance Cycle Times Business Continuity Plans Skilled People Infrastructure Coordination Case Mgt TCE – Surveys ABC Accounting Security Officer Production Planning Shared Service Principles of Operational Excellence

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