Intelligent BPOThe next generation of growth

Intelligent BPO - The next generation of growthKNOWLEDGESHARE

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Respondents place higher value on the role of technology. They view it as contributing to cost reductions and more effi cient operations by streamlining systems.David Conte. Eight best practises for procurement BPO. Survey conducted by Accenture, Everest Group & London School of Economics.

The challenges for Business Process Outsourcing (BPO).

The service provider landscape adds to the impact of this evolution. BPO is made up of many sectors. It involves horizontals such as Finance & Accounting (F&A) and HR along with procurement, and industry specifi c market segments including mortgage servicing, insurance claims processing, fund administration and clinical trials. Each BPO segment also has unique characteristics in terms of value creation and solution characteristics. So it is obvious that a so-called cookie-cutter approach to BPO no longer works.

A recent survey from Global Services confi rms the importance of the value proposition over just cost reduction. 74% of high performers focus on the potential value of business benefi ts beyond cost when creating their business case, compared to 26% of the rest. Procurement functions like sourcing and category management off er a faster ROI than procurement operations which drive and capture cost savings in the long-term. There is also hidden value in the synergies between procurement and F&A that can be unlocked and optimised with a full end-to-end source to pay approach. Organisations gain value through analytics-led insights and perspective on how procurement and fi nance functions can work better together.

The role of technology will become increasingly important as services are enacted directly in technology platforms such as software-as-a-service (SaaS) and business-process-as-a-service (BPaaS) and technology becomes a source of operational improvements and business innovation.

There is a clear indicator for the next direction of BPO. Service providers will need to consider how technologies can transform service to help clients transcend from keeping up to setting the pace. And in doing so, BPO providers become a valued ‘partner’ that can build and use their industry knowledge and expertise to meet the needs of constantly changing vertical markets.

The BPO industry is evolving. A cost plus value proposition is emerging that puts greater focus on driving organisational agility, business impact and top line growth beyond cost reduction and greater effi ciency.

The Big Five Trends.

Standardised technology and analytics

Global delivery and regionalisation of operations

Exceptional customer service and remote support

The development of standardised technology, and the ability to bridge existing IT systems to optimise investment already made, will improve the quality of service delivered. The emerging trend is that tablets and smart phones act as channels for communications among organisations, clients and workers. By transforming processes through technologies such as social media and mobility, as well as cloud, and applying analytics across the end-to-end service platform, will deliver insights and create new value.

Global delivery capability is absolutely key to successful BPO engagements to leverage the best talent and to support clients wherever they operate. Enterprises are increasingly looking for outsourcing companies that can off er the combined capabilities of ITO, BPO, consultation, applications and analytics, which will guide them effi ciently through shifting phases of growth. However true global delivery is not a single, low-cost location or a very off shore centric model but rather the trend is towards less overhead and more regional-based models. For example, a company with needs in Brazil will look to Latin America rather than India for proximity factors and local knowledge benefi ts.

Customer service is the next diff erentiator. Remote support is an integral part of it. Clients are happy to pay if they perceive that your service levels are notably superior to your competitors. Remote support could be your trump cards in achieving this. Intuitive software can gather information that can be used to get the right services to customers just at the right time when they are looking for them. And once you have a great knowledge base and self-service portal in place your customer service costs are also bound to decrease incrementally. Not only will remote support get you more opportunities to put a smile on your customer’s face, it will push down costs for you as well.

70% of Financial & Accounting outsourcing contracts in 2013 had elements of an end-to-end scope defi nition as compared to less than 40% several years ago.Saurabh Gupta, Vice President, Everest Group ‘Why, what, how and who of BPO is changing - and for the better!

Almost 85% of respondents consider their BPO provider to be a strategic partner.Michael Corcoran, Growth & Strategy Lead for BPO at Accenture

Intelligent BPO - The next generation of growthKNOWLEDGESHARE

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Industry-orientated verticals

People

Healthcare outsourcing has emerged as a golden opportunity for BPO companies - particularly in the United States with its new health regulation. Yet another new trend to watch out for is mortgage process outsourcing. A report prepared by HfS, a leading analyst for business operations in the global service industry, states that mortgage process outsourcing is likely to benefi t BPO companies and help them double their revenue. There will be increased demand for newer, more innovative and transformational BPO services in middle and front-offi ce environments that directly impact client revenues, customer service and enterprise profi tability. For example, the emergence of marketing BPO services can help clients manage increasingly complex and diverse digital marketing channels and improve ROI on marketing investments. The same follows in customer service and warranty management, where loyalty and cost savings go hand-in-hand as well as industry service platforms like healthcare and mortgage processing. Additionally, it is a growing trend in insurance claims administration where risk management and control are key objectives.

It has been widely recognised that people will become a major issue for the BPO industry in the coming years. Recruiting, motivating, recognising, rewarding and developing talent is a vital consideration, as people are the only sustainable, long-term source of competitive advantage. Buyers and providers need to invest more in people to build their industry knowledge and expertise in order to meet the unique needs of the constantly changing vertical markets - especially as the BPO value proposition evolves from cost-reduction to insights, innovation and business outcomes. On the positive side, the increasing deployment of technology will free up people for more meaningful and value-added work. However this serves to underline the importance of training and developing outsourcing management staff in areas that are strategic to the business.

The changing landscape. Our key fi ndings.

The wider needs of a global bankThis large multinational bank is service and direct business process focussed. They outsource non-core activities. They were looking for subject matter experts to bring some order and control into their process SLAs to optimise assets, future business, and the plethora of diff erent devices that were used. This would allow SLAs to their customers to be improved by optimising data on the whole estate. The aim was to give productivity, resilience and compliance to the bank’s assets. The bank legacy system was bespoke so did not have a contingency plan.

There was a need to ensure control of the whole environment; make an assessment of aged and non-suitable assets; and re-engineer the current park within the bank. They required faster, more effi cient customer-facing processes and to make fi nancial savings. In short, produce more volume without compromising compliance.

Realising the opportunities

The BPO company looked at the entire marketplace for the best high-volume solutions to increase productivity and processes. Over the course of the £2 million 3-year contract, they ensured delivery of premium SLAs, demonstrated exceptional ROI and changed the bank’s response to the marketplace. By working with over 20 of the bank’s personnel, they were integral to making sense of the device estate and management – so much so that their contract was extended for another three years.

So how is the BPO sector evolving worldwide? Obviously, the diff erences in the cultural, legal and political landscape have an impact. To understand how BPO providers are rising to their specifi c challenges and pain points, Kodak Alaris recently conducted as series of interviews with ten companies right across Europe and the Middle East. We would like to share a selection of the key issues and fi ndings that we found that demonstrate how some providers are engaging in a wider partnership with their customers.

The outsourcing market forecast is stated to be over $300 billion in 2014. Some reports even forecast 5% to 7% BPO growth rate by 2017.The BPO market report

In an Everest Group survey of client organisations, over 40% of respondents stated industry-specifi c expertise to be one of the top three sources of value delivered from the service provider.www.mglobalservicesmedia.com

Intelligent BPO - The next generation of growth

So how is the BPO sector evolving worldwide? Obviously, the diff erences in the cultural, legal and political landscape have an impact. To understand how BPO providers are rising to their specifi c challenges and pain points, Kodak Alaris recently

Industry-orientated verticals

People

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A change of directionA world-renowned document storage solution provider has now become much more of a BPO company. They had been engaged on business management and image on demands on a job-by-job basis, meeting customer requirements for individual offi ces. As a result they had accumulated more scanners than people to operate them.

Their European Management recently approached Kodak Alaris Global Strategic Team to make sense of both what they had and what they required in terms of infrastructure and scanning assets. They had also been struggling with email capture and management for which Kodak Alaris Info Insight proved ideal. The whole package that was instigated delivered not only greater effi ciencies and a more sustainable direction but also better ROI.

Strong SLA deliveryAn Irish BPO provider of ten years experience started by off ering scan and documentation digitisation. With over 700 private and public clients and some two million boxes stored, it has become one of the largest off -site storage companies in Ireland. They provide a full 24/7 service, which is vital for the healthcare service and are known for their strong SLA delivery. Their in-depth understanding of their clients’ workfl ow and needs led to further added value services. It has resulted in them providing more eDiscovery, especially for the legal sector and also indexing systems for the Pharmaceutical industry, in particular those with legacy scans.

Using these insights, they opened an offi ce in Dubai two years ago serving clients in Saudi Arabia, Bahrain and other countries in the region. As the Middle East market is still developing, they are able to utilise their considerable experience and knowledge, especially in healthcare, to their clients’ advantage. Their expertise of optimising processes and productivity has had the additional benefi t of also improving the customer experience.

A saturated Benelux storyIn Spain, France and Italy, the digitisation of health records is not a legal option and it could take another ten years before the situation changes. However in Holland and Belgium it has been permitted for some ten years. This has resulted in a staggering 100% of all Dutch hospitals that have digitalised their records. In fact, Kodak Alaris scanners are used across 90% of medical and insurance facilities because they are considered the best capture solution, understand the needs of the sector and off er ROI. Now the situation has reached saturation point. However as a trusted and knowledgeable partner it has allowed their BPO off ering to evolve into facilities management. It is now moving to the front end of the outsourcing process and meeting customers’ SLAs by off ering specialist document services in a high volume environment and mailroom process organisation.

Long-standing relationships deliverIn Switzerland and Germany the main BPO drivers are similar to other recession-recovering European countries. Tight budgets necessitate higher productivity and lower costs. The Kodak Alaris team service more than 200 bureaux of which around 70% have Kodak installations and hardware. As one of the largest scanner manufacturers in the market with a full service off ering, the Kodak name stands for a great deal in the sector. It has helped them forge long-standing relationships and gain a deep understanding of the customers’ needs and challenges.

56% of respondents look to achieve competitive advantage through BPO.David Conte. Eight best practises for procurement BPO. Survey conducted by Accenture, Everest Group & London School of Economics.

KnowledgeShare. And the way forward.

Kodak Alaris, and our new KnowledgeShare initiative will guide our customers through the complexities of information management.

Our framework of hardware and software solutions directs customers to the best route to automatically capture and consolidate corporate data from digital and paper sources. Through our range of scanning and advanced capture solutions, we help optimise business processes and coordinate a consistent customer experience to maintain loyalty and create vital competitive edge. KnowledgeShare knows no boundaries - from healthcare to fi nance, bureau to public sector, it is there to help you improve effi ciency, service and customer satisfaction whilst reducing costs.

KnowledgeShare never stands still. It is constantly being fed by what is happening now and looks to predict what will happen in the future.

Because knowledge is power, sharing it empowers.

KnowledgeShare is an important factor especially as the BPO sector evolves. The key requirements for long-term growth and success will require not just innovations in technology but also deep and extensive knowledge of both the outsourced function and the client’s business processes.

And no other company in this arena has our Experience, Knowledge, Capabilities and Credibility.

KnowledgeShare is exactly what it says. Fuelled by our own knowledge and expertise, and partnered by world-wide experts, we can identify and unlock the routes to eff ective information management and decision-making. We can help our clients to exceed customer expectations and demands across a multitude of challenges that face businesses today. We are always one step ahead - gathering and aggregating the latest thinking and best practise, modelling and assessing new processes and solutions, and devising new initiatives to meet the changing face of business.

Intelligent BPO - The next generation of growth

As one of the largest scanner manufacturers in the market name stands for a great

deal in the sector. It has helped them forge long-standing relationships and gain a deep understanding of the customers’

©2014 Kodak Alaris Inc.The Kodak trademark and trade dress are used under license from Eastman Kodak Company. 9/14

About Kodak Alaris

Kodak Alaris enables customers to capture and consolidate data from digital and paper sources, understand and extract valuable insight from the contents, and deliver the right information to the right people at the right time. Our offerings include award-winning scanners, capture and information management software, an expanding range of professional services and industry leading service and support. With customers ranging from small offices to global operations, Kodak Alaris delivers superior systems and solutions to automate business processes, enhance customer interactions and enable better business decisions.

To learn more:Visit: knowledgeshare.kodakalaris.com

meaf-di@kodakalaris.com | Dubai: (971) 4 347 5022