Supply Management BPO - short-term body shopping trumps business transformation

June 10, 2009 | Phil Fersht

Overheat It's easy to get excited with high-growth markets, but supply management BPO's different. 

While the market has grown exponentially, and a 30% increased expenditure last year is eye-opening, the nature of these engagements doesn't give me confidence that this market will sustain its growth trajectory unless customers think beyond short-term labor arbitrage, and service providers introduce significant process and technology enhancements to the early adopters to help them optimize their delivery.  This "lift and shift" model could well result in customers losing more than they save.  Read more at Think Global.

Posted in: Business Process Outsourcing (BPO)Buyers' Sourcing Best PracticesProcurement, Engineering & Supply Chain Outsourcing

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