Business Process Solutions - Trends & the Future of BPO

During a recent management activity, I was asked to put together trends in the BPO marketplace along with where the BPO space is headed. Thankfully, plenty is written on this subject on the internet and other BPO advisor presentations. Below is a snippet of my findings and I will provide more oversight on the graphical representation of the future of BPO. 

Trends in 2014

"Service providers are leveraging their domain expertise and use of tools and technologies to move from FTE or transaction based delivery models to that of a Managed Services Model (MSM)." (Govel, Outsourcing Trends 2014: New Ways to Outsource, Dec. 2013)

"The outsourcing industry is evolving from task oriented BPO services to a platform-centric and outcome-linked BPM (Business Process Management) model." (Govel, Outsourcing Trends 2014: New Ways to Outsource, Dec. 2013)

"In 2014, BPO engagements will be more strategically oriented, with clients looking for measurable business outcomes and value beyond cost reduction." (Vasudevan, In 2014, BPO Engagements Will be More Strategically Oriented, Dec. 2013)

"BPO providers love the big fish - Fortune 500 companies with scores of ousourceable FTEs and straightforward labor-arbitrage deals with attractive margins. But in a satured market, these plum deals are harder to come by. So, BPO is turning to the mid-market." (Datamark Incorporated whitepaper, 10 Business Process Outsourcing Trends to Watch For in 2014, Dec. 2013)

"Clients have repeatedly referenced the industry-focused vertical scope of F&A services as being of prime importance...Clients are increasingly educated and are looking beyond simple cost savings in their BPO engagements and into new areas of value. (Vasudevan, interview of Steve Rudderham of Accenture, The Biggest Trend that We See in F&A Outsourcing is the Move to Next-Generation BPO, Jan. 2014)

While the majority of the discussion above has happened in 2014, it is just now occurring.

The Future of BPO

Source:  A Smartsourcing Roadmap:  Challenges and Strategies, 2013, Dewan

The above "roadmap" highlights the original intent of what clients were looking for in BPO services, starting with flexibility in service offerings, immediate and long-term cost savings, and scalability as client's grow. As the roadmap moves from bottom-left to top-right, clients are demanding more sophistication and specialty expertise along with a new way of thinking for BPO's. 

As we move into 2015 and beyond, it will be interesting to see how BPO is perceived as a "must have" for world competition.  

-John Owen
VP of Sales
Business Process Solutions - Telamon Corporation