Advantages of Technology-Enabled BPOClients who have taken the leap to the next generation with technology-enabled BPO are reaping much better results than those stuck in earlier phases, with 80 percent viewing their operational performance as “quite” or “highly effective”, compared to only 65 percent of those who have not technology-enabled their BPO. This demonstrates the impact technology enablement can have in creating a modern service infrastructure, optimized for analytics, offering more standardized processes and workflows, and enabling greater visibility and control for clients. The research found that technology-enabled BPO provides the following benefits:
- Facilitates the move away from the “lift and shift” model -- Fifty-two percent of buyers with technology-enabled BPO are seeing real progress towards shifting away from the “lift and shift” BPO model where the only value metric is based on cost per employee. This is twice the proportion of those clients which haven’t undergone technology-enablement of their BPO processes.
- Drives common standards and workflows -- Over half (52 percent) of the buyers who have undergone a technology transformation can boast much greater effectiveness of process delivery in the cloud, with significantly improved cost, quality, and organizational agility.
- Provides analytical insight and innovative capabilities -- Most technology-enabled BPO buyers are achieving real effectiveness in higher value areas, namely new ideas/initiatives (50 percent), analytical insight (45 percent) and even gain sharing with their providers (42 percent). While clearly there is room for improvement in these areas, it is notable how clients that have invested in technology to enable their BPO are able to focus on higher value outcomes.
- Break away from the labor arbitrage model with automation -- BPO clients will eventually see their efficiency gains wither away if they cannot break out of the labor arbitrage model. Automation will provide the bridge between the labor arbitrage past and the state of technology enabled transformation.
- Embrace the move to digital – Clients and providers alike should re-think existing processes and remove or replace all "analog" steps which may currently be eased by technology but which aren't fundamentally digital in nature. Clients also need to invest in improved governance skills to cover these new capabilities, while many service providers need to invest in the higher caliber talent, analytics capabilities and technology platforms required to create this value.
- Invest in technology-centric personnel -- Service providers should re-organize around product management and development teams driven by software engineers and supported by business analysts rather than capability teams defined by the geography or broad pools of generalist talent. The CTO of a BPO service provider needs to have a voice at the leadership table.
This report is an important extension of Accenture’s High Performance in BPO research, which identifies the specific business outcomes and the collaborative behaviors and practices that enable clients to capture the greatest potential value from BPO. The full report is available here: www.accenture.com/BPOonthebrink.About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 281,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.