In the early part of this millennium, organizations around the world started looking at outsourcing their business processes to cut costs and become more competitive. This is how the Business Process Outsourcing (BPO) industry was founded, primarily to provide low-cost options for business process delivery.
Over the years, BPO service providers have developed a strong understanding of their clients’ businesses and have steadily moved up the value chain in terms of the services offered. Far from just being providers of low-cost back-end services, these companies have now become strategic partners for their clients and directly impact client profitability on a global level. Offerings such as end-to-end actuarial services support for the insurance industry; predictive analytics models for managing demands and forecasts in the retail / CPG industry; or managing multi-channel customer interactions as well as revenue generation at the contact center for the travel industry, are examples of the transformation shift from BPO to Business Process Management(BPM).
This shift signifies increased maturity of an industry that manages complex processes and truly understands the client’s industry, client needs for regulatory compliance, risk mitigation and the impact and demands of globalization.
BPM also reflects the move from a business model focused on being input-based to outcome-driven, where the BPM provider takes responsibility for the client’s business results. In a sense, the transformation from BPO to BPM reflects the journey of the industry from the back-office to the client’s boardroom.
For enterprises looking at outsourcing as a means of transforming their business processes, achieving cost efficiencies is of top-most priority. However, intelligent organizations are now focusing on going beyond cost-saving mechanisms and looking at achieving greater flexibility to scale and support their global operations.
The BPM providers that will succeed will be those that stay abreast of future trends and partner with the right technology and develop processes to deliver the right solution. This is about branching out of the back-office and stepping up to the board room to make a difference to our clients top and bottom line – not just costs.
Our services at SBL include research and analysis, finance and accounting, document management, and claims processing.