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How to assess a Managed services model (Platform BPO)

The value proposition of a managed services model can emerge only through a holistic evaluation. This requires involving all relevant stakeholders addressing all solution elements. The evaluation of managed services needs to focus on process and technology at the same time.

 

 

Assessment Factors
-The solution should provide for a holistic approach to business process outsourcing and should involved process as well as technology considerations.
-The service providers approach should facilitate ongoing value creation through service delivery excellence by innovation and technology leverage.
-Service provider should be able to covert fixed costs structures to variable cost structures.
-Outsourcing arrangement should consider all possible exit costs related technology, headcount, others.
-The arrangement should consider an appropriate time frame from the customer and service provider perspective.
-Ample scope for reduction in TCO through process standardization and economies of scale.
-The solution should provide for scalability and agility required to cope up with fluctuation in business cycles.
-The solution implementation should consider all levers to minimize change management issues.
-The assessment should consider all risk elements related to the outsourcing program and the corresponding mitigation strategies incorporated in the solution.

 

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Comments

Nitin, this looks interesting from a large picture standpoint especially the way it helps the 'capex' move to the 'opex', that's really nice. Have there been any drawbacks to these models that you want to outline?

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