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BPO: IT services vendor strategies
Market Report, June 2007, 1592  €


Description

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.


Sommaire
 
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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