Outsourcing becoming a necessity more than a need:
Evolving with the generations
Russell Ives
Managing Director
Australia & New Zealand
BPO, Accenture
Global Services Forum
May 28, 2013, Beijing
Evolution of Business Process Outsourcing
1st Gen
Pioneers
2nd Gen
Offshore
3rd Gen
Operational
Excellence
4th Gen
Outcomes &
Insight
.
Globalisa0on 6th Gen
Collaboration &
Community
Future Shared Services Emerging Current Core Competencies Increasing Compe00on 5th Gen
Everything As a
Service
2000’s 1990’s Copyright © 2013 Accenture All rights reserved.
2
Evolution of BPO – Clients Perspective
2nd Gen
Offshore
1st Gen
Pioneers
.
Client
Objectives
Cost savings,
outsource noncore functions
Plus
global capability
3rd Gen
Operational
Excellence
Plus
“noiseless”
delivery
4th Gen
Outcomes &
Insight
Plus
Industry depth,
insight and
innovation
5th Gen
Everything As a
Service
6th Gen
Collaboration &
Community
Plus
Platforms and
flexibility
Plus
Community
Community Flexibility Insight Efficiency Cost Offloading Copyright © 2013 Accenture All rights reserved.
3
Evolution of BPO – Providers Perspective
2nd Gen
Offshore
1st Gen
Pioneers
.
Client
Objectives
Cost savings,
outsource noncore functions
Transfer Provider
Capabilities
Migration of
client ‘As-is’
capability
Plus
global capability
Low Cost Centres Offshore
migration
Ad hoc process
improvement
Copyright © 2013 Accenture All rights reserved.
3rd Gen
Operational
Excellence
Plus
“noiseless”
delivery
Delivery Process
excellence, 6
sigma, use of
tactical tools
4th Gen
Outcomes &
Insight
Plus
Industry depth,
insight and
innovation
Insight Industry process
knowledge
Analytic insight
Client alignment
5th Gen
Everything As a
Service
6th Gen
Collaboration &
Community
Plus
Platforms and
flexibility
Plus
Community
Community IntegraFon As a Service
orientation
Integrated BPO,
ITO delivery
Multi client
networks
Community
orientation
4
Evolution of BPO – Provider Evolution
?
1st Gen
Pioneers
2nd Gen
Offshore
4th Gen
Outcomes &
Insight
3rd Gen
Operational
Excellence
5th Gen
Everything As a
Service
6th Gen
Collaboration &
Community
.
Cost savings,
outsource noncore functions
Plus
global capability
Plus
“noiseless”
delivery
Plus
Industry depth,
insight and
innovation
Plus
Platforms and
flexibility
Plus
Community
Offerings
Financial
Services, F&A,
HR
More back office
and industry
processes
Moving into the
“middle office”
All “offices” with
insight &
industry focus
Offerings
coupled with
cloud based
platforms
Scaled across
industry and
community
Deal
Pioneering mega
deals with lift &
shift focus
FTE-based
focused on labor
arbitrage
FTE-based with
SLA’s and
limited gain
sharing
Aligned to
business
outcomes to
clients
Business
outcome with
embedded
technology
Multi client
consistency and
end-customer
charging
Platforms
Intend to use
client platforms
for 1:many
Client’s own
platforms
Client’s own
platforms plus
provider tools
Broader use of
providers tools
and embedded
analytics
Cloud based
standardised
applications and
analytics
Broader use of
collaboration
and social media
Capabilities
Migration of
client ‘As-is’
capability
Offshore
migration
Ad hoc process
improvement
Process
excellence, 6
sigma, use of
tactical tools
Industry process
knowledge
Analytic insight
Client alignment
As a Service
orientation
Integrated BPO,
ITO delivery
Multi client
networks
Community
orientation
Client
Objectives
?
Copyright © 2013 Accenture. All rights reserved.
5
Implications for Buyers and Providers
Our research shows that high performers in BPO exhibit eight core management
behaviors and practices
Collaborative BPO
governance
Change management a priority
Drive strong transformational
capability
Adopt a partnership-based
approach to governance
End to end
approach
Take a holistic
approach to the scope
of the BPO relationship
Copyright © 2013 Accenture All Rights Reserved.
Domain expertise and analytics
Contextualize data through domain
expertise and analytics
Value beyond cost
Focus on benefits beyond cost
reduction
Retained organization
transformation
Align the retained organization with the
outsourced processes
Business outcome
focus
Target strategic business
outcomes
Technology as an enabler
Emphasize benefits of
technology in the BPO
relationship
6
Thank you.
Copyright © 2013 Accenture. All rights reserved.
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