Gartner©2003Gartner,Inc.and/oritsAffiliates.AllRightsReserved.Reproductionofthispublicationinanyformwithoutpriorwrittenpermissionisforbidden.Theinformationcontainedhereinhasbeenobtainedfromsourcesbelievedtobereliable.Gartnerdisclaimsallwarrantiesastotheaccuracy,completenessoradequacyofsuchinformation.Gartnershallhavenoliabilityforerrors,omissionsorinadequaciesintheinformationcontainedhereinorforinterpretationsthereof.Thereaderassumessoleresponsibilityfortheselectionofthesematerialstoachieveitsintendedresults.Theopinionsexpressedhereinaresubjecttochangewithoutnotice.Markets,M-18-9580L.Stone,R.SchollResearchNote14February2003Gartner'sBPOMarketModelSpotsProcessestoOutsourceGartner'sbusinessprocessoutsourcingmodelhelpsenterprisessegmentandanalyzethetotalityoftheirinternalbusinessprocesses.Theanalysisidentifiestheprocessesthatcanbesupportedbyexternalserviceproviders.Since1999,twoforceshavebeenatworkinthebusinessprocessoutsourcing(BPO)market.First,wehaveseentheemergenceofaggregatedserviceofferings—forexample,aBPOofferingisinclusiveofallmajorhumanresources(HR)processesorseveralspecificfinanceandaccountingprocesses.Second,enterprisesareincreasinglyacceptingBPOasaviablemeanstofocusoncorecompetencies,takecostsoutofcurrentoperationsandspeedthetimetoimplementnewtechnologies.Inresponsetothesenewertypesofserviceofferings,andtheincreasedadoptionofBPObyendusers,GartnerhasreviseditsBPOmarketmodel(seeFigure1).Thecircularnatureofthemodelisreflectiveoftheincreasinginteractionsamongprocessesindemandandsupplymanagement,suchasordertofulfillment.ThenewBPOmarketmodelcanbeusedbyenterprisestoviewandsegmentthetotalityoftheirinternalbusinessprocesses.Asthisunderstandingisgained,itfacilitatesanalysisofwhatprocessescanlikelybeoutsourced.Enterprisescantheninvestigatewhatisandisnotreadilyavailablefromexternalserviceproviders(ESPs).CoreTopicSourcing:SourcingStrategiesKeyIssueWhatarethefundamentalelementsofasuccessfulsourcingstrategy?©2003Gartner,Inc.and/oritsAffiliates.AllRightsReserved.M-18-958014February20032Figure1BPOMarketModelDemandManagementCustomerSelectionCustomerAcquisitionCustomerRetentionCustomerExtensionEnterpriseServices•HumanCapital•Finance&Regulatory•IT•FacilitiesManagementMoveStoreMake/DeliverBuySupplyManagementSource:GartnerResearchGartnerhassegmentedbusinessprocessesintothreebroadcategories:DemandManagementProcessesDemandmanagementprocessesarethoseprocessesthatlinkanorganizationwithitscustomers.Thiscategoryincludesactivitiessuchascustomerselection,customeracquisition,customerretentionandcustomerextension.Withineachofthedefinedactivitycategories,thereareopportunitiesforoutsourcing.Examplesofprocessesthatcanbeoutsourcedinclude:•Customerselection:Marketdataanalysisandbranding•Customeracquisition:Telemarketing,negotiationandcreationofthecustomerrelationship•Customerretention:Inquiryhandlingandfieldsupport•Customerextension:Customerbusinessassessment,upsellingandcross-sellingSupplyManagementProcessesSupplymanagementprocessesarethoseprocessesthatarefocusedonresponsestocustomerdemand.Thiscategoryincludesmove(movingproductsorservices),store(storingproductsorinformation),make/deliver(thecreationanddelivery©2003Gartner,Inc.and/oritsAffiliates.AllRightsReserved.M-18-958014February20033ofaproductorservice)andbuy(buyingmaterialsforproductorservicegeneration).Examplesofprocessesthatcanbe...
