BPO’s in Philippines fail to capture high business value: Accenture Report

March 9, 2012: Accenture, a global player offering management consulting and technology services has recommended the Business Process Outsourcing companies in the Philippines to change their mindset and target looking at projects with higher business value. This recommendation was made in the wake of observation that majority of the companies in the industry has failed to offer services higher up in the value chain.

The observation was made after publishing the findings of the BPO research study which included survey of 263 clients of BPO services. The findings in the report suggest that only 20 per cent of the BPO clients who participated in the survey were able to obtain greater business value from their BPO partnerships.

The report also includes 8 best practices that will lead to higher performance. Accenture said that buyers can extract more business value from BPO partnership with the help of the eight practices. The study clearly indicates that the mindset of the BPO sector needs to change to obtain complete business value and that performance of the client vendor partnerships are measured by business outcomes and enhancement in the performance of the business of the customers.

According to a source from Accenture, BPO partnership will provide great business value only if the customer and the service provider are bound by deeper relationship and practices that deliver high performance are adopted. The ones who adopted such practices were benefitted with improved performance.

Statistical observations showed considerable differences in the fields concentrating on mindsets and attitudes. In the case of high performing BPO partnerships, 85 per cent of the participants view their service provider as a strategic partner. In the case of typical engagements, only 41 per cent of them view service providers as strategic partners.

75 per cent of the participants which high performance relationships responded that senior executives from both the client’s side and service provider’s side devoted time to understand the objectives and strategies. In the case of typical engagements, it was just 33 per cent.

So by following practices and behavior of high performing partnerships, companies in the BPO sector can make improvement in the area of creating business value. This will help to develop capabilities and advantages that will make the organizations competitive and innovative. With the improvement in performance, customer loyalty will increase, which in turn will help in generating more revenue. 

The studies gain importance as global crisis is forcing companies to resort to cost cutting measures and are outsourcing their activities.

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