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4 March 2012 | Adam Leach
Adopting a collaborative approach
to governance, change management and achieving mutually beneficial outcomes is
the key to getting best value out of business process outsourcing (BPO), a research
Achieving high performance in BPO, published Tuesday by Accenture, found that 20 per cent of
respondents are extracting greater value from their BPO deals than the rest. It
identified eight core management actions that made high achievers stand out.
These were: taking a holistic approach to managing the BPO relationship;
collaborating on governance; prioritising change management; focusing on
strategic benefits beyond cost reduction; targeting strategic outcomes;
leveraging domain expertise and analytics; aligning retained organisations with
outsourced processes; and using technology as an enabler.
The report found that 85 per cent
of high performers see their BPO provider as a strategic partner, compared with
just 41 per cent of those who are not high performers. Three quarters of high
performers get senior leaders from both parties together to understand each
other’s objectives, compared with just 33 per cent of non-high performers. In
addition, 90 per cent of high performers were able to positively resolve
conflicts, compared with just 44 per cent of non-high performers.
Mike Salvino, group chief
executive, BPO at Accenture, said: “The results indicate that BPO arrangements
deliver greater business value when the client and provider engage in deeper
relationships and leverage practices that drive high-performance BPO.”
The report said: “Until recently,
companies were looking for something relatively straightforward from a BPO
relationship: greater efficiency, streamlined operations and lower costs.
Today, companies expect more: business insight, innovation, industry expertise,
solutions adapted to more individualised needs, a commitment to continuous
improvement and more.”
The Everest Research Group and
The Outsourcing Unit at London School of Economics conducted 263 surveys and 20
in-depth interviews with Accenture clients to form the research.