Product Type: Market Research Report
Published by: Ovum Plc
Published: June 2007
Product Code: R464-552Description The past five years have been a roller-coaster ride for IT services vendors playing in the European BPO market. Despite strong market growth, and some early big wins, most vendors have not met their revenue or profit expectations. However, this has not deterred IT services vendors, who now see doing BPO business as even more of a strategic imperative for long-term sustainable growth.
After a period of self-reflection, IT services vendors are taking the lessons from the past five years and implementing them in new BPO go-to-market strategies, most of which will kick off in 2008. In this report, we assess the key challenges facing IT services vendors, and advise on future directions.Table of Contents - Key findings
- Messages for vendors
- Identify your strengths and (up)sell around them
- Board-level support for BPO is critical…
- …but don't over-stretch yourself
- Listen, and adapt to client needs
- TPAs are part of life: work proactively with them
- Work towards a balanced portfolio
- Work to productise offerings for the long term
- Develop repeatable and lower-risk sales processes
- Invest in senior client sector executives
- Partner and relationship management is crucial
- Why BPO?
- Leveraging existing assets
- Defending existing IT business
- Opportunity for sustainable growth
- Success and lessons to date
- Growth is not what it seems
- Profits take a long time to come
- Maturity can make a big difference
- A lack of quality delivery operations
- Small acquisitions can beef up offering
- Partnerships are a more likely route
- Mixed support for BPO from IT services vendors
- Offshore, not IT, drives today's BPO deals
- Understanding the client context is crucial
- Building a 'balanced portfolio'
- Getting shareholders on board
- Renewed strategies going forward
- Targeting the 'right type' of business
- Focusing on existing strengths
- Vertical versus horizontal BPO focus
- BPO sales strategies
- Still a learning experience
- More targeted sales
- Hiring 'rainmakers'
- Tightening up the sales process
- Flexibility in pricing models
- Leveraging consulting
- Offshore BPO
- The race for offshore resources
- Global players lead Europeans
- Global sourcing is driving M&A
- Sensible sourcing
- Offshore is a two-step process
- The role of IT in BPO
- ERP as a basis of horizontal BPO
- Single or multi-platform approach
- The drive for homogeneity
- Proprietary platform play
- Leveraging internal IP
- SOA as an efficiency tool
- Software vendors increase interest in BPO
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