Companies are looking to identify non-strategic processes ripe for outsourcing, to educate themselves on the risks and benefits and to understand the offerings and capabilities across the business process outsourcing (BPO) service provider landscape.
This is the view of Oliver Fortuin, HP's local head of services, who says BPO is similar to the more common practice of IT outsourcing, in that it can help businesses compete through lower costs and improved access to technology.
Commenting on HP's recently released forecast of trends in the BPO industry for 2007, Fortuin says the first key trend is that companies want and need more from BPO.
"There is a need for more than just cost savings. Buyers are making decisions that will improve processes and customer service - balanced with cost-cutting goals," he explains.
Second, HP says successful BPO initiatives will be defined by the collaborative nature of relationships and the ability for continuous improvement.
"While reactivity could be tolerated in the past, proactivity is now key to ensure a sustained competitive advantage. By working collaboratively, service providers will be able to better anticipate what changes and challenges companies will most likely face as a result of their business plans - and help them to respond accordingly," says Fortuin.
Governance, measurement
As multi-sourcing becomes more prevalent, governance will also be a key trend, says HP. As companies start to see the benefits of outsourcing, they are also made aware of an increasing number of sourcing options.
Fortuin says multi-sourcing has therefore emerged as an option that is gaining increased attention from businesses that want access to best-in-class processes. However, he warns this trend will require more effective management of multiple vendors.
"To achieve this, governance and training will be critical for organisations' multi-sourcing project managers in order to mitigate risk and ensure service levels are met. Measurement and service quality should also be top of mind for those considering BPO," he says.
Effective measurement criteria, he says, lets customers demonstrate to their organisation that by outsourcing, they are not only saving money, but gaining access to specialised skills, cutting-edge technology and processes that deliver tangible benefits to the business.
Contracts, expansion, globalisation
Another trend to watch out for, says Fortuin, is the increasing complexity and sophistication of BPO contracts.
"In the past, contracts have focused primarily on cost savings and services. However, the focus has now shifted to value-add. Contracts also need to be more flexible and need to be able to evolve with the changing needs of the company."
He also believes that the global footprint for BPO will continue to expand, since India is no longer the only hub to which buyers will go for outsourced services.
The final trend Fortuin highlights is that for companies offering BPO services to succeed, they will have to become truly global, and "rigour and consistency" will be required.
"As companies become more comfortable with a global delivery model and having less worries as to where work is getting done, they will be looking for standardisation and consistency in services around the globe," he explains.