The evolution of Business Process Outsourcing.
By analysing the evolution of BPO and its direction so far, we see that companies across all sectors have the opportunity to take advantage of BPO in a way that maximises the value it provides.
The evolution of Business Process Outsourcing.
By analysing the evolution of BPO and its direction so far, we see that companies across all sectors have the opportunity to take advantage of BPO in a way that maximises the value it provides.
THE FIRST THREE GENERATIONS HAVE MOVED FROM COST SAVINGS TO GLOBAL DELIVERY.
First generation BPO
The type of BPO that focused exclusively on cost reduction during the 1990s.
Second generation BPO
One that saw a shift from lift-and-shift, i.e., relieving a company of the burden of providing and delivering an end-to-end service at a fraction of the cost, to global delivery that expanded the coverage of processes and organisational functions.
Third generation BPO
The third generation BPO, the offspring of its predecessor, after seeing an ever-widening range of processes being outsourced by client organisations, emphasised industrialisation and process efficiency before implementation.
First generation BPO
The type of BPO that focused exclusively on cost reduction during the 1990s.
Second generation BPO
One that saw a shift from lift-and-shift, i.e., relieving a company of the burden of providing and delivering an end-to-end service at a fraction of the cost, to global delivery that expanded the coverage of processes and organisational functions.
Third generation BPO
The third generation BPO, the offspring of its predecessor, after seeing an ever-widening range of processes being outsourced by client organisations, emphasised industrialisation and process efficiency before implementation.
OUTSOURCING TODAY CAN ADD EVEN MORE VALUE, PARTICULARLY IN THE FORM OF INNOVATION!
Fourth generation BPO
This generation is an evolution based on implementing tools for analysing operational data generated by the vast number of transactions accumulated by the outsourcer in its long-term relationships with clients. The results are typically increased speed and enhanced ability to innovate.
Fifth generation BPO
The next stage of BPO innovation arises from the standardisation of processes made efficient by the innovations at previous levels. It is characterised by the emergence of “on-demand” services, applied to multiple clients through tested and effective models with customisable management software and contractual approaches that are more commercial and less project-based.
Sixth generation BPO
Developing “social” contexts in business leads one to think that the related technological tools will also establish a new order in BPO. Social media will likely be used to develop communities of learning and evolution centred around the processes delivered through
BPO. These communities will then be enhanced and comprised of different client groups in diverse industries and the BPO service provider’s staff with varying levels of expertise.
Fourth generation BPO
This generation is an evolution based on implementing tools for analysing operational data generated by the vast number of transactions accumulated by the outsourcer in its long-term relationships with clients. The results are typically increased speed and enhanced ability to innovate.
Fifth generation BPO
The next stage of BPO innovation arises from the standardisation of processes made efficient by the innovations at previous levels. It is characterised by the emergence of “on-demand” services, applied to multiple clients through tested and effective models with customisable management software and contractual approaches that are more commercial and less project-based.
Sixth generation BPO
Developing “social” contexts in business leads one to think that the related technological tools will also establish a new order in BPO. Social media will likely be used to develop communities of learning and evolution centred around the processes delivered through
BPO. These communities will then be enhanced and comprised of different client groups in diverse industries and the BPO service provider’s staff with varying levels of expertise.
These, then, are the questions that you need to ask:
To what degree does the BPO provider use data analytics to identify and seize opportunities to improve your business outcomes?
To what extent do you use IT tools from BPM, Business Intelligence etc., to capture and deliver these opportunities?
With what conviction do you select a BPO service provider with an eye on becoming a strategic partner for your organisation?
In which ways could you benefit by participating in a BPO learning and sharing community?
These, then, are the questions that you need to ask:
To what degree does the BPO provider use data analytics to identify and seize opportunities to improve your business outcomes?
To what extent do you use IT tools from BPM, Business Intelligence etc., to capture and deliver these opportunities?
With what conviction do you select a BPO service provider with an eye on becoming a strategic partner for your organisation?
In which ways could you benefit by participating in a BPO learning and sharing community?
The Group
The Group