The BPO industry has been going though an incredible evolution since the first major deals was cast, barely more than a decade ago, that it’s high time we took stock and take a good look at the phases – or generations – through which our industry has progressed. And there are few people who have lived and breathed these generational shifts more closely that Accenture’s BPO leader, Mike Salvino.
In case you missed our joint webcast with Ed Caso of Wells Fargo Securities on Friday, fear no more, as here’s the replay
Our core mantra at HfS has always been to tackle the issues and complexities of global sourcing through the eyes of the buyer. One analyst who has spent nine years of his life doing just that, leading BPO governance for the $62 Billion healthcare payor, WellPoint, is our Governator himself, Tony Filippone. No single person in 2011 has written to – or talked with – more buyers about their governance challenges, and we are delighted to reveal to the world today his elevation to Executive Vice President of HfS’ research team.
TCS’ insurance services delivery subsidiary, Diligenta, has become wedded to in a 15-year, $2.2bn, 1900 employee life and pensions BPO engagement with the UK’s Friends Life. This represents the largest life and pensions BPO engagement by a considerable margin, eclipsing the $1.1bn Prudential contract awarded to Capita in 2007. We believe this move from TCS signals a sea-change in the industry with regards to the growth strategies and ambitions of the leading BPO providers.
InfosysBPO is now a major BPO contender in the global marketplace, having quietly gone about building its BPO business streams since its inception via the buyout of FAO provider Progeon, exactly five years’ ago and expects to reach the landmark of $500m in revenues this year. HfS has always been encouraged by the firm’s approach to developing both horizontal and vertical BPO services, and its focus on leveraging its IT heritage to augment its value proposition. Infy is by no means the biggest player in the BPO business nor does it want to be, but it has been able to establish itself as a smart and very respected player in the BPO business.
Capgemini has made a major move towards strengthening its position in the global F&A BPO market by today acquiring Vengroff Williams and Associates – and leaping to third in the market share spot for F&A globally
CMOs have it tough today, whichever geography or market you look at. They’re stretching dollars for myriad activities in a function that’s undergoing major change. HfS Research’s Reetika Joshi discusses her new report “Marketing BPO Services: Solving the CMO’s Dilemma”
What is motivating buyers to outsource in this current climate? While eliminating cost is still is a huge fundamental, buyers are even more focused on achieving greater flexibility to scale their global operations as a prime motivating factor. Clearly, many executives are getting more experienced and skilled at driving an sourcing initiative, and are confident they can use the endeavor as a change agent to promote and implement much-needed change in their businesses.
Genpact has been working with Nissan for more than six years, providing finance and accounting, procurement, customer service, supply chain and analytics services. So adding HR services seems a natural extension of these services – even though Genpact has limited client experience of multi-process HRO.
Those organizations being impacted by radical, fundamental shifts to their very industry economics, are more prepared than ever to admit they need to look outside of their current organization boundaries to keep their business operations cost-competitive. Simply-put, secular change crystallizes options for businesses and the outsourcing planning process often becomes more clear-cut as a result.
Despite the value health care payors provide their customers, payors’ processes are complex, manually intensive, and prone to error. One consumer’s visit to the hospital generates substantial legal paperwork, complex approval processes, coordination of benefits with other insurers, and a blizzard of bills, notices, and follow-up calls that require months to resolve. This post elaborates on the new HfS Research report on the current state of healthcare payor Business Process Outsourcing.
Welcome to Part 2 of the Don Schulman interview, where he talks to us about whether shared services are really dying, the changing role of advisors, and where he sees the BPO industry moving in the future, and what he means by “verticalizing the horizontal”.
We’re delighted to announce that we, at HfS Research, have today officially launched our Cloud Business Services Research Practice. And not only that, but we’ve hired the perfect man to lead this unique coverage: the one and only Sir Robert McNeill of Dumfries and Galloway.
Outsourcing of IT and business process has always been a game for large enterprises, where well-executed large-scale employee transitions have resulted in profitable endeavors for both providers and buyers. But while the large buyers like saving the money, it’s actually mid-market sector ($1bn-$3bn revenues) which is getting a lot more out of the experience
HfS Research’s “State of Outsourcing 2011″ study of 1335 industry stakeholders, conducted with the Outsourcing Unit at the London School of Economics, points to a marked turnaround in outsourcing intentions as global economies reach a period of sustained (albeit limping) recovery. For many organizations today, clearly the short-term counter-recessionary measures have been executed through to fruition, leaving business function leaders under renewed pressure to seek out new operational strategies for driving out cost and improving global effectiveness.
After 14 years, the effervescent Pramod Bhasin, now in his 60th year, is handing the reins to “Tiger” Tyagarajan, the company’s current COO, and long-serving member of the leadership team
Cognizant is at present the darling of the IT offshore services and outsourcing industry for its consistent and impressive growth and positive levels of customer satisfaction, so we thought we’d share some impressions with our readers.
Shhh… Don’t tell anyone, but while most of us weren’t looking, the utilities industry quietly racked up $25 billion in annual spend on outsourcing—that’s in the US alone! How did this happen? How did this get past the regulators and the unions? Who knew that outsourcing would not only grow, but stick, in this most conservative of industries?
EXL and OPI, two of the smaller Finance and Accounting BPO (F&A BPO) providers, and both recently touted as acquisition candidates in HfS Research’s 2011 F&A BPO market landscape, have tied the knot in a surprising merger, in this rapidly-consolidating and transmutating BPO market
This report delivers an unprecedented view of the F&A BPO industry, based on 788 live engagements, where organizations have outsourced two or more core F&A processes to a service provider. In addition to exhaustive contract information, HfS draws upon recent demand-side survey analysis to deliver the complete view of the market dynamics, the service provider landscape and the future expected direction of the industry.
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