Discuss trends and ideas on the convergence of Infrastructure Technology Outsourcing (ITO) and Business Process Outsourcing (BPO). Find out how you can benefit from adopting a managed services delivery model, and learn more about how the bundling of consulting, technology and BPO services can transform your organization.

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August 27, 2009

Next generation BPO: will drive on tailored standardization

It is now by and large evident that the next generation BPO will happen on more complicated and knowledge based process outsourcing in a much shorter time span, and organization’s objective would be to attain transformational benefit rather than cost savings alone. The ongoing recession has brought some method in the madness towards outsourcing rush wherein service providers are being challenged to articulate value proposition beyond ‘cost savings’ alone as a long term strategy. Today we are seeing plethora of solutions mushrooming in the provider’s offering list even if they are not solution in real sense. The next generation BPO solution has to primarily address:

-‘Standardization’ to drive savings through shared service model from a low cost location and this invariably can’t be achieved unless the underlying technology layer is seamless
-‘Tailoring’ to address client specific nuances in terms of process, language and skills in an integrated fashion to enable client become more agile to external environment.

Standardization and Tailoring, though sounds conflicting necessarily needs to be in optimal balance and its right mix is key to the success of next generation BPO solution. This would also mean that service providers would need to have a good handle on both process and technology while executing outsourcing for much needed aspired transformational benefits.

August 7, 2009

The Right way to price.....

In the recent past we had multiple interactions with prospects and existing customers on the pricing model for Platform based solutions for "Source to Pay" (managed services).Various stakeholders have expressed opinions which rightly address their concerns but it’s hard to conclude to a single model.

Let me start out with a fundamental argument. What is the objective of an outsourcing engagement? Is it to impact business process from a business requirement standpoint or to impact at transactional level?
In my view a transactional view does not enable a service provider to create any transformational value for clients. Service providers will perform the transactional work as per agreed SLA but will not be in a position to appreciate or contribute larger business goals that client organizations strive for. The transactional view probably provides benefits which are tangible, but are far from business benefits that is the need of the hour.

A pricing model should also reflect the basic premise (transformational v/s transactional) and should use the right metrics accordingly. In the next post I would like to discuss with the audience various pricing models that can be proposed. Till then please feel free to share your views on pricing.

August 3, 2009

Business Platform: The Nirvana-State in Cloud

With more & more literature on the cloud as an utility market, which is going through the typical hype cycle, I am increasingly convinced that the Business Platform model is the nirvana-state in cloud.

Why I believe Business Platforms is the end-state in cloud is not only because of the uniqueness in the model in going beyond the infrastructure & application layer, but taking it all the way into the  business process arena along with value-added services & tools. This unleashes phenomenal business value combined with innovative pricing linked with business metrics.

Even as the cloud debate evolves, Business Platforms – the nirvana-state in cloud is there as a business model to stay with early adopters already tapping into the business value.

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