Process Transformation

For some organizations, a business process needs to undergo wholesale change - due to mergers and acquisitions, new products and services, or changing market conditions. In addition to the above, successful transformation in an outsourced relationship requires an intimate understanding of the business and operation, not just the software system being used. While there are only a few case studies of BPO firms leading their clients' process transformation initiatives, this will change as BPO firms build unique industry and process expertise and companies select BPO firms based on their industry focus and specialization, not just wage arbitrage. The recent MGI research predicts that undertaking a transformation of business processes will result in lower cost structures, which will add significant new revenue opportunities that outweigh even the cost savings associated with outsourcing.

Long term, companies may demand contractual commitments to ongoing cost savings and quality improvement over the term of their relationship, putting the onus on the BPO firm to be a true business partner.