Whether BPO is transforming into BTO?
The concept of Business Transformation Outsourcing (BTO) has come up in a major IT conference in 2002. The basic demand that propelled the growth of the business process outsourcing (BPO) market was process expertise. Providers' process reengineering expertise and economies of scale met buyers' demands of generating process improvements and cost reduction. But process improvements can only go so far.
Buyers now have two or three years of good results with their BPO deals; but they are realizing the ability to continue generating new value is not inherent in those arrangements. The market is moving, with buyers asking providers to help them become more competitive and using outsourcing to change business outcomes. This requires a new breed of BPO provider with the resources to deliver on the promise of business transformational outsourcing. Essentially BTO does the following (as per IBM Global Services) :
1. adapts quickly to market changes
2. innovates around the process areas while improving them
3. speeds the time to benefit realization around the process innovations
4. improves real-time data capture to enhance decision support on an enterprise-wide level.
Lessons (from the Outsourcing Journal):
1. Moving beyond BPO, BTO providers achieve innovation and ever-evolving enterprise-wide transformational outcomes, not just cost reduction and reengineered functions.
2. When evaluating potential BTO providers, buyers should ensure a provider is making deep capital investments in ongoing research/development around innovation and software/systems integration solutions.
3. Unlike BPO (where solutions are process centric), BTO solutions will be industry led.
4. Seek a provider that can turn its sophisticated industry insight into innovative, enterprise-wide solutions.
As per the IT Secretary Jainender Singh, the market potential for BTO is expected to be around $680 billion towards the end of March, 2009. It is expected to grow at 9% to 10% per annum. The percentage of BTO services in the outsourcing spectrum is expected to increase from 19% in 2004 to 31% by 2009.
Other related articles :
1. If a Business Process Outsourcer Improves a Function, Is It Business Transformational Outsourcing?
2. Business Transformation Outsourcing Reinvents the Wheel to Create Strategic Impact
3. Buyer's Guide to Business Transformational Outsourcing Essentials
4. Buyers Ready For Business Transformation Outsourcing
5. Required Reading on the Realities of Business Transformational Outsourcing
6. The Greening of the BTO Environment
7. IBM - Business transformation outsourcing
8. Business Transformation Outsourcing: A premium strategy for insurance providers
Buyers now have two or three years of good results with their BPO deals; but they are realizing the ability to continue generating new value is not inherent in those arrangements. The market is moving, with buyers asking providers to help them become more competitive and using outsourcing to change business outcomes. This requires a new breed of BPO provider with the resources to deliver on the promise of business transformational outsourcing. Essentially BTO does the following (as per IBM Global Services) :
1. adapts quickly to market changes
2. innovates around the process areas while improving them
3. speeds the time to benefit realization around the process innovations
4. improves real-time data capture to enhance decision support on an enterprise-wide level.
Lessons (from the Outsourcing Journal):
1. Moving beyond BPO, BTO providers achieve innovation and ever-evolving enterprise-wide transformational outcomes, not just cost reduction and reengineered functions.
2. When evaluating potential BTO providers, buyers should ensure a provider is making deep capital investments in ongoing research/development around innovation and software/systems integration solutions.
3. Unlike BPO (where solutions are process centric), BTO solutions will be industry led.
4. Seek a provider that can turn its sophisticated industry insight into innovative, enterprise-wide solutions.
As per the IT Secretary Jainender Singh, the market potential for BTO is expected to be around $680 billion towards the end of March, 2009. It is expected to grow at 9% to 10% per annum. The percentage of BTO services in the outsourcing spectrum is expected to increase from 19% in 2004 to 31% by 2009.
Other related articles :
1. If a Business Process Outsourcer Improves a Function, Is It Business Transformational Outsourcing?
2. Business Transformation Outsourcing Reinvents the Wheel to Create Strategic Impact
3. Buyer's Guide to Business Transformational Outsourcing Essentials
4. Buyers Ready For Business Transformation Outsourcing
5. Required Reading on the Realities of Business Transformational Outsourcing
6. The Greening of the BTO Environment
7. IBM - Business transformation outsourcing
8. Business Transformation Outsourcing: A premium strategy for insurance providers
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