Business Process Outsourcing has been the watchword for headcount and overhead cost cutting for a decade. But times are changing quickly and old school thinking at certain outsource companies mean a miss match with the expectations of the more forward thinking corporate boards.
Six key fundamental influences are creating a landscape that will change the way business is conducted and the traditional working practices we have taken for granted for the last 30 years.
Over the past 20 years many of these drivers have been independently addressed with solutions that tackled them as a particular problem. However this has left many business processes as a hodge podge of partially adopted systems and technologies, siloed information, inconsistent working practices, work arounds, single points of failure and bottle necks.
This creates friction in processes that cause inefficiencies. The old style of outsourcing took a process as it stood and transferred the same number of FTE (full time equivalent) to a cheaper labour location and thereby cut costs. What has often failed to evolve is the process its self since the outsourcer is rewarded on FTE’s. Anything that cuts head count is not in its interest and such a commercial model is typically devoid of innovation and service agility.
Business Process Transformation looks holistically at the process outcomes that need to be achieved rather than the current process. With an understanding of new capabilities both in technology and working practice, services can be consolidated and centralised and provided as a composite self serve and/or managed service.
The cost benefits are considerable even when re-shoring services to increase the customer experience and savings of 30 % + are not unusual with payback timescales of under a year.
“I am presenting a series of breakfast briefings in the City of London over the next 12 months. If you are interested in topics such as Outsourcing, Artificial Intelligence, Business Continuity Planning and more email the ComXo team at firstname.lastname@example.org