Transcend People Limited | Inside Outsourcing

This week, InformationWeek published a 30-page report on the results of a reader poll focused on business process outsourcing. Author Ivan Schneider, writes:

“Saving money is still the No. 1 goal of business process outsourcing, though a notable minority sees it as a tool for strategic change.”

At TPL, we tell prospective clients that cost savings are an important advantage of BPO, however, it’s not the only reason. Companies should also look to BPO in order to increase efficiencies and reduce resource/management burden.

Companies who view BPO as a “tool for strategic change” are the companies we like to target. Any new BPO partnership requires a sizable initial investment of time and resources, for the client and the provider. So to be sustainable, it’s got to be a long-term win-win for both parties.

Aside from cutting costs (cited by 83%), other reasons companies consider BPO are:

• Improving efficiency (73%)
• Shifting internal focus to innovation and new projects (55%)
• Improving time-to-market (42%)
• Tapping lower-cost offshore labor (53%)
• Concentrating on core capabilities (54%)
• Expanding into new business (20%)

More key drivers for BPO are available in the report. You can download and read the rest of it here. Happy reading!