The web site IT Business Edge recently posted a list of trends that are shaping the Business Processing Outsourcing (BPO) market. Among them:
- Going vertical: Outsourcing clients are looking for more vertical expertise from their suppliers. “The vertical integration among infrastructure, applications and operations will ensure efficiency, accountability and alignment between business strategies and enabling services,” says Anirban Dutta, director of Global Strategic Business Development at CSC.
- More focus on outcomes: With the development of new technologies, outsourcing providers will offer more outcome-based pricing. Customers are increasingly focused on fully managed services with outcome-based service level agreements (SLAs), Dutta said.
- New negotiations: Procurement organizations will take a more active role in purchasing decisions and other activities, which will lead to renegotiations of existing deals with IT customers.
- Supporting empowered employees: A recent Unisys poll of information workers revealed that 36 percent preferred to bring their own computers or devices to work, and that trend is expected to grow in the coming years, with advances in smartphone and tablet technology. Companies could take advantage of this trend by offering a “digital allowance” subsidy to allow employees to purchase their own devices for business use.
- Contract pricing: Though most outsourcing clients are confident that pricing is competitive for years one and two, history shows that pricing adjustments over the life of a contract don’t keep pace with the competitiveness of the market. To respond to this, more companies will establish procedures to ensure competitive pricing – including predefined unit price declines, mandated benchmarks and adjustments based on specific indexes.