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Sep 27, 2009


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What you refer to as Business services cloud is what we refer has Business Platforms( not Platform BPO)-as they bring together -the business process fully configured and supported on an application ( including maybe a part of ERP and/or best of breed tool along with value added solution layers to address gaps)bundled with the domain based business process services expertise hosted on a private or public cloud .All of this is bundled together and priced in a model which is based on outcome or transactions serviced .
Overall to move to the Business Platform -which in my view is the Nirvana state on cloud - at one end there are product vendors adding business services layer along with hosting andon the other end are Tech Savvy BPO service providers who are building out and offering the whole business process based services -embedded with augmented application layer and hosting .
Which of these players will win depends on who is able to bring out the benefits of "economies of scope through standardisation" along with industry specific personalisation -driven by Domain capability and knowledge.


Very apt example of Mark Stiffler. This approach comes with multiple benefits. Firstly, it opens up a huge revenue stream for product vendors in the form of managed services. Secondly, it becomes a huge differentiater in competitive situations where product fitment becomes an issue. Using this approach, players like Mark can provide certain functionalities on demand and thereafter bake them into their product. Thirdly, it opens up a huge market demand of small enterprises. Many of the complex processes should start off as part of the KPO industry thereby getting de-skilled and either getting automated or becoming BPO processes. This a surely the way to go.


Any process that is tied to regulatory protocols is normally a great candidate for outsourcing, as you have immediate standardization, and there a always software packahes available to underpin the workflows. Take environmental health and safety, for example. Expect that to move into a heavily managed services environment in the future with software firms such as Technidata developing managed services-based offerings. As you point out, there are many financial processes that fall into this category. It's more a question of reassuring clients they're better off using an outsourced model (i.e. cheaper, better compliance, empowerment to focus internal staff on higher-value tasks etc)...



A couple of comments :-

1. The resistance to change to adopting Business Cloud could be high.

For eg :-

1.Fraud Case management is a common process followed by many banks - Will they be open to moving this on the cloud and the process managed by a service provider ??

2. Mortgage / Loan Processing : Is again a common process ( with different business rules ) followed by many banks..will they be open to moving this process on the Business Cloud and managed by a service provider ??

It's actually a good opportunity for Non-IT /BPO companies to get into a Business Cloud!! For eg : A large Bank or Industry federation hosting a Business Cloud for Mortgage processing, might make it easier for other banks to move this process into a Business Cloud!!


Murali Sathya

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