Navigating the Changing BPO Value Proposition

David Borowski, principal, offers insights and sound advice for global organizations looking to leverage the convergence of BPO and technology in this contributed article, which appeared both online and in the Summer 2014 issue. Sample excerpt: “One of the most compelling value propositions of business process outsourcing has always been labour arbitrage. Whether enabled through ‘your mess for less’ or more of a ‘fix then shift’ approach, a key lever has been the same: deploy less costly resources to perform low-complexity, high-volume tasks. However, as factors such as wage inflation and competition for talent have started to erode the arbitrage play, service providers have necessarily placed more emphasis on technology-enabled transformations that deliver savings, but also impactful efficiency, productivity, and business results improvements… Given their increasing importance in driving cost and performance improvements, transformational solutions have become a key selection factor for many of today’s BPO buyers and a competitive differentiator for service providers. In fact, buyers are increasingly prequalifying providers based on their process optimisation and transformation toolsets and weighting provider ability to “transform” operations heavily in the selection process. The key to enabling this kind of BPO transformation is technology.”

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