Business Process Outsourcing: A Broad-Brush View April 13, 2011 Copyright © 2010 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. BPO: Painting the Picture •Accenture in BPO •The Evolution of BPO •Selecting an Outsourcer •The Outsourcing Engagement Cycle •Pricing an Outsourcing Arrangement Accenture in BPO Accenture has been a major player in BPO for more than 20 years 20 Years of BPO Experience 36,000 350+ 150 50+ 38 BPO clients Delivery locations Languages supported Countries serving client operations BPO Professionals And is recognized in the marketplace for its BPO capabilities Named #1 for three consecutive years in the 2010 Global Outsourcing 100 (2008, 2009, 2010) Won 5 consecutive years (2005 – 2010) Copyright © 2010 Accenture All Rights Reserved. Ranked #1 leading Outsourcer (2007) Winner Best Mature Outsourced Services Delivery with Microsoft (2010) 3 The Evolution of BPO Late 90s “Market Frenzy” Geo Focus 1st Gen Early 2000s Move to Off Shore 2nd Gen Mid 2000s on “Opex is King” 3rd Gen Today to Tomorrow “ Insight” 4th Gen Future “True OnDemand” 5th Gen NA NA NA/Europe NA/EALA Global Large standalone Focused on changing processes Global Delivery, multi-client Industrialized delivery, higher value functions Increasingly customized by process 10 7 5 5 Varies Industry specific Increasingly tied to Top-Line strategic priorities Scope Length Industry/ Offerings Engagement Platform Client Wants/Value FS Industry HR More industries HR, F&A. Procurement and Payroll All industries All of the back office with Pilots in the mid office Industry specific All of the Back Office and moving into Mid and Front 100% re-badge Few profitable contracts Pioneer Partnerships Off-shoring is key Deliver cost reduction business case Deliver cost reduction and increasingly topline benefits to client Using pilot client platforms Move towards 1:Many platforms Use providers platforms Use providers platforms Lift and Shift Cost Savings Process Operational Stability Global Delivery Cost savings Process excellence Global Delivery Cost Savings Proc-Excellence Industry Depth Analytical Insight Innovation Instant cost reduction Increasing top line contribution Cloud Flexibility Industry Depth Analytical Insight Standardized Tech Innovation 4 Selecting an Outsourcer Once a decision to outsource is made, landing on a provider will depend in part on your initial approach Copyright © 2010 Accenture All Rights Reserved. 5 The Outsourcing Engagement Cycle…. Although the steps to agreement may vary, a rapid and fulsome exchange of information is almost always key to success Copyright © 2010 Accenture All Rights Reserved. 6 ….and How Long it May Take In general, the smaller the agreement, the quicker it can be executed Copyright © 2010 Accenture All Rights Reserved. 7 Pricing an Outsourcing Arrangement Pricing an arrangement will depend on a number of criteria—including objectives, anticipated length of the agreement and appetite for risk Copyright © 2010 Accenture All Rights Reserved. 8 Chris Metzger Chris Metzger Senior Executive, Customer Care BPO Operations Lead - Canada Chris is responsible for overall management of BPO operations in Canada, including responsibility for more than 2000 people across multiple centres. Chris’ teams perform customer care, finance & accounting and procurement activities on behalf of many large North American corporations. Chris has been in the customer care industry for 16 years, including more than 10 years with Accenture. This has included roles as global command centre lead, solution architect for new contract opportunities, project manager for the construction of a green-field BPO site, and director of collections for the Canadian utilities practice. Chris has spear-headed the movement of back-office work offshore for a number of major clients and works closely on a daily basis with the global delivery teams in Asia, Europe and South America. Chris is based in Accenture’s Toronto office and can be contacted at chris.metzger@accenture.com 35