FilingInformation:January2003,IDC#BP01K,Volume:1,Tab:UsersEuropeanBusinessProcessOutsourcing:SurveySURVEYBPOAdoptionPatternsandBuyingIntentions:IDC's2003BPOSurveyJamieSnowdonIDCOPINIONThebusinessprocessoutsourcingmarketisstillinitsdevelopmentstageinEuropewiththemajorityofbusinessservicesbeingdeliveredaroundlogisticsandfinanceandaccountingservices.Toadegree,BPOwillbeasuccessregardlessofhowvendorschangetheircurrentofferingsandattitudes.However,IDCbelievesthestrengthofgrowthintheBPOmarketinEuropeisdependantonvendorsdevelopinginthefollowingways:!Focusoncustomereducation—WhichorganizationswillbenefitfromBPOandwhichwillnot?Howdoesthecostreductionversusservicedeliveryimprovementequationplayout?Howistheoutsourcingoftransactional(tactical)activitieshelpingorganizationsbecomemorestrategicanddelivergreatervalueaddtotheirshareholders?!Improvesatisfactionamongexistingclients—Strongandstableprojectmanagement/relationshipteamsarerequiredbothonthevendorandcustomersidesabletoopenlydiscussandraiseissuesproactivelyordealwithproblemsastheyoccur.Maintainingthefocusandmomentumoftheprojectwillbecrucialinensuringthattimelinesand,critically,costsavingsobjectivesaremet.!Communicationofbenefits—Thismustbecommunicatedtoemployeesaswellastheboardofdirectorsofthecustomerorganization.Thebenefitsoftheprojectwillbebasedonaclearunderstandingoftheexistingbaselineandtheobjectivetobeachievedoverthelifetimeofthecontract.Howthatobjectivewillbeachievedwillbedependantonafewkeyperformanceindicators(KPI).Businessprocessoutsourcingisnotmeasuredsolelybytechnology-basedmetricsbutalsobypeopleandprocessmetrics.Definingthesemetrics,howtheyaretobemeasured,whatparttheyplayinensuringtheobjectiveisachievedandhowregularlytheyaretobecommunicatedtothecustomerwillbeimportantinhelpingmaintaincustomersatisfactionwiththeprojectdirection.!Partneringandalliancestrategies—StrongpartneringandalliancestrategiesarerequiredtodeliverBPO—whetheratthelocal,regionalorgloballevel.BPOprovidersneedtogainrapidaccesstotechnology,processorconsultingexpertisethatwillhelpthemtobuildanddeploysolutionsthatwouldbetoocostlyandtimeconsumingtodevelopinhouse.Havingaclearnear-shore,off-shorestrategywillalsobecriticalinensuringthattransactionalcostsaredrivendownwhilstatthesametimecustomerconcernsregardingproximityofthedeliveryinfrastructureanddatasecurityaremet.!'Lean'BPOandfastROIforcustomers—TheexperienceoflargerERPprojectshasshownthatcustomerswillnolongertoleratethepainof18monthorlongerimplementationcycleswithouttheguaranteeofquickandquantifiablereturnsoninvestment.Smallermoreflexible'leanBPO'deliverymodelsmaybethewayforward.GlobalHeadquarters:5SpeenStreetFramingham,MA01701USAP.508.872.8200F.508.935.4015www.idc.com#BP01K©2003IDCTABLEOFCONTENTSPInThisStudy5Methodology.............................................................................................................................................5ExecutiveSummary..................................................................................................................................5SituationOverview6Introduction...............................................................................................................................................6SurveyFindings......................................................................................................................
