Informed consent: how to use BPO effectively

Content

• EXECUTIVE SUMMARY
  • In a nutshell
  • BPO market overview
  • Defining the IT-led BPO market
  • A new era in BPO
  • Understanding BPO, governance and trust
  • Generating client savings from BPO
  • How the savings stack up
  • Labour arbitrage (offshoring) is the low-hanging fruit
  • Global sourcing: which country to choose?
  • IT efficiencies not so clear-cut
  • The BPO business model
  • Suppliers must have a sustainable model
  • Simple economies of scale not a main driver
  • Contracts have to stand on their own feet
  • Phasing of a BPO contract
  • Funding ongoing savings from day one
  • Shorter, simpler transitions boost profit
  • Smaller deals; phased improvements
  • Labour versus IT efficiencies
  • Providers shy away from large-scale IT transformation
  • Labour arbitrage is preferred for initial savings
  • IT expertise is important for ongoing savings
  • Strategic considerations in BPO
  • Not about core or non-core
  • The devil is in the detail
  • Understanding pricing
  • Understanding a transaction
  • Unit- and step-pricing
  • Breaking the link from cost and price
  • Joint ventures
  • Sharing risk and reward
  • Joint ventures are not service providers' preferred model
  • Relationship management
  • Measuring performance: outcomes and SLAs
  • Focusing on outcomes: balancing control, openness and flexibility
  • The outcome-based reverse pyramid
  • Collaborative governance
  • Strategic relationship through collaborative governance
  • Identifying and dealing with risks and opportunities
  • Keep the contract in the drawer, but the relationship fresh
  • Governance costs, but fosters trust
• List of Figures
  • Figure 1: Potential labour efficiencies versus IT efficiencies in BPO
  • Figure 2: Typical BPO contract: cost versus price profile
  • Figure 3: The reverse pyramid in outcome-based BPO