Document Services: BPO
Where next for Business Process Outsourcing?
Steven Hall, October 2009
Since the advent of facilities managed services in the 1980’s the fundamental value proposition Business Process Outsourcing has changed substantially.
Initially, companies were enticed by the lure of a more flexible workforce and by the notion that non-core services could be acquired with the skills, experience and resilience to provide added value at a reduced cost.
Over time, this value proposition has diminished. TUPE legislation in the UK has meant that the labour market isn't as flexible as it once was and the growth of facilities management has meant that the price of talent has naturally stabilised.
The net effect of this situation is that the cost and service benefits have come full circle and it is now difficult to ascertain if businesses are more cost effectively supported than they were 20 years ago. However, there is no turning back.
The migration to cheaper locations, output management and better utilisation of real estate are the mantra of the moment; however, whilst contributing to a valid and important reduction in the cost base they do little to improve the quality within the business process to drive return on investment.
Key performance indicators are an important and reassuring tool for maintaining consistency and the status quo, but what about looking forward and maximising the return on investment from what the organisation already has?
Consequently, it is imperative that organisations now focus on integration, resilience and continual improvement if they are to continue realising the benefits from Business Process Outsourcing.
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