« Outsourced! | Main | Guest Post: An Outsourcer on Every Corner: Part I »

May 24, 2007

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Scott,

You need to look at the below mentioned points in order to take a well informed decision. If the below mentioned points are true for your company, then you need to go for a Platform BPO approach.

1. Do not wish to further invest in expanding existing ERP (SAP/Oracle/PeopleSoft) Financials AP Module in new geographies.

2. Wish to upgrade from legacy systems to an ERP system

3. Multiple versions of the same ERP Financials Module across multiple locations

4. Multiple system environments across multiple locations

5. Wishes to outdo with the cost and issues associated with maintaining and running a technology platform as is in the case of a traditional BPO service offering

6. Business strategy is defined to focus on core competency and to add business value from non-core competency functions of the business.

7. Volume of work is dependent on seasonal changes

Assuming that your company haS reached a level of business maturity wherein the end result matters more than the process itself when it comes to processes that are not core competency and do not add competitive advantage to the company. The end results however have a direct correlation to the cost component, thus, Platfrom BPO.

Platform BPO can also be offered to companies wherein the volume of work is erratic and depends highly on seasonal changes because of the cost associated with maintaining an ERP Financials Module at all times and the cost associated with maintaining enough resources to cater to the increase in volume as and when it happens. It is better for such companies to turn towards the Platfrom BPO offering as it would remove the burden and cost of having to maintain a system and resources to service a work function that is highly dependent on seasonal changes.

Evaluate Service Providers for:
1. Domain Expertise
2. In-house domain expertise and experience in delivering relevant services
3. Process Maturity Levels and Continuous Improvement
4. Level of process efficiency and commitment of internal management towards sustaining and encouraging process improvements
5. Amount of year-on-year savings/cost reductions achieved through process improvements
6. Investment in People, Process and Technology
7. Healthy track record and future ability to invest in domain expertise, high end technology and process frameworks.
8. Analytics and Business Intelligence Capabilities
9. Information Security
10. Comprehensive Business Continuity Models and Disaster Recovery Management Systems
11. Level of Security Infrastructure for People, Process and Technology but most importantly client’s business critical data security management systems

Dear Mr Baader,

I enjoyed reading your article.

What is your advice to Indian offshore BPO providers with these technology issues? My company has very strong process capabilities but we often have to partner with IT services providers on deals and it seems to work against us when we compete against the providers who already have strong IT competencies.

Regards,

AR

Dr Baader,

My company has been having extensive issues in consolidating our core finance processes onto a single instance of SAP (we also use Oracle and some legacy apps in some units). We are now evaluating outsourcing and are debating whether the ERP consolidation should be done prior to the transaction, or whether it can be done as part of the entire outsourcing engagement - as one supplier is strongly suggesting. What do you suggest from your experience?

Scott

The comments to this entry are closed.

Your email address:


Powered by FeedBlitz

Follow me on Twitter

    follow me on Twitter

    Translator

    My Photo