Global mining industry is facing a lot of burning issues, in terms of cost, commodity price volatility, profitability, and so on. In order to get out of these complex issues companies are incorporating more complex scenarios into their strategic planning. Business Process Management of transactional and knowledge processes to outsourcing service providers will also be considered under strategic planning. The research study done by Deloitte Touche Tohmatsu Limited (DTTL) revealed the issues and trends shown by the global mining industry.
When we look on the challenges faced by global mining industry, cost of doing business is the prime issue faced by the sector. Some times 82% of the investment on a project needs to be spent on water, transportation and energy. Such chaotic situations will inversely affect the project returns in a considerable extent. Commodity price chaos, the battle to keep profits, the demand for heightened corporate social responsibility, labor issues, and nontraditional financing are the other issues faced by the global mining industry. To get of these issues companies are now looking for measures like improving capital management, employing skilled workers, and diversification and proper planning.
Even though the companies had outsourced traditional BPO and ITO services in the past, it could not save the situation to the expected level. Business process management operations are extended to finance and accounting, industrial automation, IT support, payroll management, back end office support, etc. Though these processes helped in business automation to a great extent, it is not enough to alleviate the problems faced by the industry.
Now the hope of the industry lies in knowledge driven BPM services rather than traditional ITO and BPO services. As a part of this Rio Tinto, a leading international mining group has started outsourcing services such as
- Sourcing new talent for specific functions
- Master data management
- Bid management automation
- Financial research monitoring global indices tracking prices, and
- Market research specific to the mining supply chain.
BPM major, Infosys stands as the outsourcing partner of Rio Tinto from the last few years. Infosys helped Rio Tinto to integrate IT and BPM services along with SAP implementation and FAO services. Other than Infosys, Rio Tinto had partnered with iGate Patni for data mining and analytics services. This kind of collaborations results in a win-win for both partners as well as the relationship itself.
In lieu of the present scenario, BPM service providers are now looking KPO services as a great opportunity in the BPM services offered by mining industry. Industry anticipates that KPO services along with IT/BPO, and FAO services can bring out the challenges faced by and can offer long term sustainability across geographies and processes with an integrated outsourcing framework.