SIG Conference: Day 2 – eSourcing Insights and BPO Innovations

By Bill Huber, Director, CPO Services, TPI
BillHuber eSourcing:
SAP and WE Energies provided some excellent, practical insights on how eSourcing auctions have been successfully conducted, and how they were able to diffuse the frequent arguments that reverse auctions destroy value.  As we have noted in the past, reverse auctions and other sourcing technologies are simply tools, and it is always the human element that determines whether tools will help to create or destroy value.  Gail DeVeau’s work at WE Energies is an example of how the tools can work in capable hands. 
The BPO Market:
Phil Fersht from AMR Research provided a broad overview of the direction of BPO. He shared many excellent nuggets with the group.  There were several highlights that stood out:
  • There is a new breed of executive emerging that is looking at globalization and outsourcing.  In the 90’s the CIO had to move forward with enterprise resource planning (ERP) or be left behind.  Now, senior finance executives are feeling the need to move forward with globalization or be left behind.
  • Healthcare analytics and sourcing from federal funding will be a growth area for sourcing professionals.  The stimulus plan confirms this.
  • Many things that AMR Research has been telling clients not to do in outsourcing for years is now happening. Now companies are simply saying, “Take 30-40 % off bottom line. We are willing to take a leap of faith. We just want it done.”  The reality is that it takes 3-4 years to do effectively. 
  • In outsourcing, client satisfaction trumps other service level agreements (SLAs).  If clients are satisfied and they feel that they are working with the provider, they will tend to be pleased even if there are problems in other SLAs.
  • Procurement outsourcing will increase, partially because of the skill set issues facing procurement organizations, and knowledge process outsourcing (KPO) options available that are executable with relatively small headcounts. 
  • Customers are asking procurement software vendors to provide more process support to      drive greater collaboration between procurement software providers and outsourcers.  Currently only about 15% of procurement BPO implementations involve technology transformation, far below other areas of BPO.
  • KPO resources are often used to bring high value service to clients with the objective of ultimately growing the business into more scalable BPO. 

More insights from day 2 to follow…


About ISG

Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience and global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 900 employees and operates in 21 countries.

15 Responses to SIG Conference: Day 2 – eSourcing Insights and BPO Innovations

  1. rajaram April 11, 2009 at 12:29 pm #

    I tip my hat to you for raising this discussion. SaaS, in concept, is incredible, and BPO can provide the flexibility to make it work effectively for businesses, supported by low-cost resources. You are correct is highlighting that there is a culture clash between technology and operations people in understanding how SaaS can be most effectively deployed. But is should prove to be a great change-agent which we so desperately need,

  2. Bill Huber April 14, 2009 at 6:40 am #

    As you point out, there is somewhat of a conflict of interests between those who are inclined to customized and support applications and those who are willing to adapt their processes to an industry standard. There is a place for both. A role of leadership is to help each find its proper place!

  3. Barb Ardell April 15, 2009 at 5:54 pm #

    Bill, thanks for the newsy post. Can you say a little more about what you mean and what’s involved in Healthcare Analytics?

  4. Business process outsourcing April 16, 2009 at 1:46 am #

    Bill,Really nice one.Thanks for sharing this post.

  5. Bill Huber April 16, 2009 at 8:41 pm #

    By “healthcare analytics”, Phil was referring to the activities typically performed by a healthcare payer (such as a Blue Cross or a Cigna, for example) to understand the cost of care, the quality of care, and the effectiveness of disease management programs. Many outsource service providers have service offerings that include various analytical services in support of these activities.

  6. Business Process Outsourcing June 10, 2009 at 2:50 am #

    Good informative post..thanks for sharing this blog with us.

  7. IwAay Bpo June 30, 2009 at 4:44 am #

    Thanks a lot for sharing this post, its interesting and very informative.
    IwAay Bpo
    Right place for outsourcing in BPO & Callcenters

  8. Call center in india August 18, 2009 at 7:37 am #

    Good news for BPO services.keep it up.

  9. Outsourcing Tech Support January 20, 2010 at 12:51 am #

    This was a very pertinent post. Outsourcing offers many advantages. For instance, outsourcing allows companies to seek out and hire the best experts for specialized work. Using outsourcing also helps companies keep more cash on hand, freeing resources for other purposes, such as capital improvements. It’s also often cheaper in terms of salaries and benefits and reduces risks and costs.

  10. KPO Companies March 2, 2010 at 4:10 am #

    I think this post is brilliant. I came across your site while trying to find a source for business-related topics. Your posts always show me that you really have some indepth knowledge about this. Quite a valuable read i must say.

  11. Call Center Philippines March 19, 2010 at 4:26 am #

    It’s great to read such topical stuff on the web as I have been able to discover here. Thanks for publishing such great reading material!

  12. Lead Generation Philippines June 21, 2010 at 2:06 am #

    Thanks for the article! It makes so much sense but I never though about it like that. It was nice to read your blog as it gave me an encouraging and refreshing look into the BPO industry.

  13. CeliaDickerson19 July 18, 2010 at 8:50 am #

    This is well known that cash can make people autonomous. But what to do when one has no cash? The one way only is to get the credit loans and just credit loan.

  14. Telemarketing September 18, 2010 at 7:15 pm #

    Great read! Outsourcing has definitely left its footprint in the business world. With its cost effectiveness, more companies are now outsourcing whether it be offshoring or not.

  15. Telemarketing Services September 23, 2010 at 7:26 pm #

    This is a very informative source for BPO / KPO companies. Thank you for posting some very interesting insights regarding this business / industry.

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