Hackett stresses on transformation, process improvement in BPO
As the offshore services market matures, transformation and process improvement are likely to play a growing role in companies business process sourcing decisions.
By PTI |
HYDERABAD: As the offshore services market matures, transformation and process improvement are likely to play a growing role in companies business process sourcing decisions, according to a new research from the Hackett Group, a global strategic advisory firm and an Answerthink company.
In fact, the ability to offer transformation support may be the most significant opportunity, and possibly the greatest threat, that offshore markets like India will face in the coming five to 10 years, said Wayne M Mincey, President, Hackett Group while addressing a joint press conference here today.
Earlier, Michel Janssen, Chief Research Officer of the company giving presentation told mediapersons that Hackett's research shows that, while the potential for companies to reduce costs by offshoring back-office operations is dramatic, companies can potentially increase these savings by over 50 per cent by selectively integrating transformation and process improvement efforts into their globalisation initiatives.
As reported in Hackett's earlier research on "Lift and Shift", where companies simply move current-state processes offshore, the savings are significant at over USD 120 million annually. If, however, process transformation is undertaken in conjunction with Lift and Shift, the savings expand to USD 185 million.
Janssen said in certain key areas of the back office including finance, the opportunity from transformation is several times larger than the cost savings available through labour arbitrage.
In fact, the ability to offer transformation support may be the most significant opportunity, and possibly the greatest threat, that offshore markets like India will face in the coming five to 10 years, said Wayne M Mincey, President, Hackett Group while addressing a joint press conference here today.
Earlier, Michel Janssen, Chief Research Officer of the company giving presentation told mediapersons that Hackett's research shows that, while the potential for companies to reduce costs by offshoring back-office operations is dramatic, companies can potentially increase these savings by over 50 per cent by selectively integrating transformation and process improvement efforts into their globalisation initiatives.
As reported in Hackett's earlier research on "Lift and Shift", where companies simply move current-state processes offshore, the savings are significant at over USD 120 million annually. If, however, process transformation is undertaken in conjunction with Lift and Shift, the savings expand to USD 185 million.
Janssen said in certain key areas of the back office including finance, the opportunity from transformation is several times larger than the cost savings available through labour arbitrage.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
