Mutating to transform - natural evolution for the IT and ES industry?
The BPaaS model is fast becoming a cornerstone of customer enquiries and addresses an inflection point in the BPO industry. While the IT+BPO story was earlier about automation, it's now about offering the entire service - tech, people and process as a service.
Evolution is natural and we have seen this in the BPO industry as well - way back in the good old 90's, BPO started out with the basic premise of bringing in "labour arbitrage" to industry using the global delivery model to deliver processes in a lift-shift-consolidate and run model. While cost is still a driving force in the industry, other requirements and demands from customers are fast gaining priority. Till a few years ago, most interactions with clients would involve conversations around what value is bought in terms of automating technologies to enhance and transform the business process. The BPO industry consequently evolved to develop strong capabilities around process integration, productivity improvements and transformation all built around automating technologies.
Over the last few months a new trend is emerging - clients have been asking for BPO providers to take over not only the people but also the technology backbone to offer the process as a complete business process solution. This BPaaS model is fast becoming a cornerstone of customer enquiries and addresses an inflection point in the BPO industry. While the IT+BPO story was earlier about automation, it's now about offering the entire service - tech, people and process as a service. Hence while BPO companies strive to provide platform services, the fine line between IT and BPO is blurring and we see a convergence of the two industries. Will this be the next stage of evolution in the industry where there is no IT or ITES industry but only a BPM industry focusing in integrated transformation? Or will this "integrated transformation model" be a strange mutant which might not deliver its promise or will it be the natural evolution to ensure survival of the fittest?