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 The Practitioner's Guide to Shared Services and BPO - Vol. 1
White Paper |
Category: Strategy & Business Case Business Processes Outsourcing...
"From an economic perspective, a business case details the associated costs and benefits (both quantifiable and non-quantifiable) of the proposed solution."
Volume 1 is the first of a series of Guidelines for Shared Services and Business Process Outsourcing (BPO) developed by Alsbridge to reflect a shared understanding of good practice in developing a business case, organizational design, change management, SLAs and service levels, charging and benchmarking.
This white paper provides guidance on business cases for organizations contemplating a Shared Service or BPO initiative. It can be read straight through, as an introduction or overview, or used on a section by section basis as appropriate. Sections include an outline of the fundamentals of business case design, a description of the points in the Shared Services and BPO life cycle when business case activity is required, and details on the contents of a business case.
Balancing the Risk and Reward of Outsourcing
White Paper |
Category: Strategy & Business Case RFP Development Provider Selection...
The best outsourcing agreement for your organization is not necessarily the one with the lowest price. Your primary goal when negotiating and structuring an outsourcing contract is to develop an agreement that achieves your business objectives not just on day one but throughout the entire term.
This white paper will help you understand the overall construct of a good outsourcing contract so that you can make certain you balance the overall risks and rewards in order to receive the services you need, at the levels you require, and within your price constraints.
 Nine Shock Waves That Will Hit BPO in the Next 24 Months
eNews |
Category: Business Processes Outsourcing
The biggest headline in the Business Process Outsourcing (BPO) world today is that continuing global economic changes are causing a paradigm shift in the way organizations are doing business, according to Dinanath Kholkar, Head, BFS & INS, BPO Services, Tata Consultancy Services (TCS). "Higher returns on investments, faster turnaround times and the need to reach out to emerging markets are the needs of the hour," he notes.
The outsourcing market is experiencing a radical change from the first generation lift-and-shift paradigm to today's BPO solution model, according to Richard Jeffery, managing director, Active Operations Management International (AOMi). Rahul Kanodia, CEO and vice chairman of Datamatics adds, "Today it's no longer just about cost. Buyers want you to produce value from more complex transactions. In fact, BPO providers need to scale up to the next level, which is knowledge process outsourcing (KPO) and business process management, for demonstrating value adds to their customers."
This article reveals nine of the biggest shock waves that will hit the BPO and Business Process as a Service (BPaaS) world in the next 24 months, such as:
- The move away from headcount-based contracts - BPO buyers now no longer just want to move a chunk of their back offices
- Buyers want more transparency inside the BPO process - Today's buyers are more sophisticated in what BPO should look like
- Productivity matters - There's a lot of pressure on productivity in BPO, you can also improve your costs by improving productivity through process automation
- The rise of the BPO specialist - Today companies don't want to hire a business process outsourcer that does everything
- Offshore providers are doing more work onshore - The conversation is shifting dramatically
- Regulatory pressure will continue to increase - U.S. auditors will increase their scrutiny of BPO transactions
- Social media is a new biz op for BPO providers - Social media is an increasingly relevant factor in the end-customer's decision process
- Business Process as a Service (BPaaS) is catching on - buyers like the idea of paying as they go, but they also like buying the services behind it
- Buyers are getting savvier - Which puts BPO providers under pressure
Consequential and Direct Losses in the BPO Environment
eNews |
Category: Negotiations / Renegotiations Business Processes Outsourcing
In any Business Process Outsourcing (BPO) project one of the issues guaranteed to excite both provider and customer is the scope of limitations of liability. Negotiating overall caps on liability is a straightforward commercial haggle.
Negotiating overall caps on sourcing liability is a straightforward commercial haggle. The service provider aims low, usually hiding behind the "market practice" and "corporate policy" defenses. The customer reacts with a high figure, which more closely reflects the likely loss to the customer's business of serious supplier failure, but which often fails to take into account the risk/reward analysis that the provider has to perform in evaluating whether to proceed with the deal. After a process of practical risk evaluation and confidence building the parties usually arrive at a compromise figure.
Once the cap is agreed it is surprising how often the parties pay little attention to the types of loss that may be recovered. Any service provider will expect to include in the contract some form of consequential loss exclusion. However, to simply rely on or accept the presence of a boilerplate clause excluding either party's liability for "special, indirect, consequential or incidental damages", without any further detailed discussion and drafting about specific losses which would or should fall outside such exclusion, could potentially leave both parties financially exposed. In Finance and Accounting outsourcing, for example, the supplier will usually be responsible for cash management functions, accounts receivable, accounts payable and a degree of financial reporting. A failure or delay by the provider could give rise to a variety of losses for the customer. An underpayment or failure to pay a third party supplier could give rise to interest charges, loss of early payment discounts, order cancellation or delay in product delivery (which in turn could give rise to production losses and possible loss of business for the customer).
A failure to collect receivables could give rise to financing or overdraft charges, or cash flow problems for the customer. Late provision of financial reports could affect the customer's ability to submit statutory accounts or tax returns with the consequent risk of fines or interest charges. Do these losses fall within or outside consequential loss exclusion?
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