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Asia-Pacific BPO market rosy: IDC

Carol Ko | July 28, 2009
Value-add functionalities, through platform business process outsourcing, such as standardisation, scalability, and economies of scale, fit well in the CFO's agenda

Offering end-to-end solutions

BPO vendors today are moving to offer complete end-to-end solutions of people, processes, technology and analytics.

IDC says that, with the emergence of the new risk-reward share' type business models, there is an increased expected risk exposure for BPO vendors. The vendors stand to gain from continuous process improvements that they are able to provide clients on an ongoing basis and for initiating or improving processes that impact customer revenue.

BPO is no longer viewed as a mere cost arbitrage tool, but as a potentially strategic transformational service.

Sustainability of organisational change, in the area of cost management, is a key mantra for organisations poised for recovery, said Narayan. Currently, there is an increased focus in the market on outsourcing as a means to improve ongoing business processes and generate efficiencies all around. BPO vendors that offer strategic solutions of transforming the business with a direct impact on the revenue or profit lines will see an increase in a demand for their services.

Fitting in with this need for business transformation, vendor engagements are also moving away from a traditional contractual arrangement to a more intimate, partnership type engagement.


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