
HfS Research CEO Phil Fersht interviews Xchanging CEO David Andrews
When it comes to achieving innovation when outsourcing, buyers need to identify where real innovation is possible, and where they only really need operational efficiency. Both buyers and providers need to be honest with themselves to determine whether they are truly prepared to invest in either achieving or delivering innovation. If not, stick to being operationally efficicient and stop talking about an innovation game-plan that will never happen.
While there's a lot of puff coming from most providers, expectations are not being met when it comes to the actual achievement of innovation within many Business Process Outsourcing (BPO) engagements. Consequently, this improves the options for the first-time BPO buyer to select a provider that can demonstrate a proven track record of innovation, but what about the second-time buyer, rooted firmly in BPO purgatory?
Whoever said Obama was going to be bad news for the outsourcing business? The outsourcing market has rebounded heavily with the economic recovery and the successful passage of the new Heathcare Reform Bill has both the IT outsourcers and BPOs on red-alert for a barrage of new business oppirtunities. The need for payors to manage their administrative costs has never been as intense as it is now, with the fixed medical loss ratios.