World-class companies have continued to leverage technology and business best practices to widen the gap between their performance and that of their peers. In recent years, world-class companies have shifted their focus to business process outsourcing (BPO) to drive higher performance. While business process outsourcing can deliver significant benefits in efficiency and cost reduction, there can also be challenges and pitfalls associated with outsourcing. For enterprises considering outsourcing, partnering with the right outsourcing consulting firm can help to ensure that they yield the desired benefits.
Adroitserve believe that BPO is the most compelling event in the SG&A world for the next 5-10 years. The impact of business process outsourcing is of such magnitude that it will challenge the conventional wisdoms that have guided the way service delivery models for SG&A have been architected over the past two decades. Ensuring the correct mix of structure, people, performance and technology will result in the optimum balance of an effective and efficient global organisation.
Offshoring and outsourcing alone are not “silver bullets.” Offshoring in combination with other business transformation initiatives will drive performance optimization. Since the late 1990s, organizations in North America and Europe expanded the business process outsourcing to most of their back office functions, like IT infrastructure and applications development, human resources, finance and accounting. Most of these transactions represented a “lift and shift” business process outsourcing strategy whereby current processes were moved from a high costs to a low costs geography but little or no business transformation either preceded or followed the process transition. As expected, few of these transactions enabled company to achieve world-class performance. Adroitserve believes the next wave of BPO transactions will encompass both “transform and shift” and “shift and transform” business process outsourcing strategies. This expected change in sourcing strategy will have a profound impact on how strategic sourcing strategies are formulated and executed.