BPO and standardis(z)ation

BPO is receiving lots of coverage at the moment, especially given the Accenture Unilever deal.  Big deals continue to be closed, but the challenge remains;  how make it profitable and scalable.Long term BPO success is dependent to being able to provide a process more cheaply and more effectively than a single "in house" operation could do. If BPO cant do this, then they is little point in doing it.

It will be interesting to compare the Accenture Unilever story with that of the Procter and Gamble IBM story. Procter and Gamble had moved all core HR and Payroll processing onto a single SAP HR instance (all 90 odd thousand people and all 90 odd countries) Unilever, I believe, on the other hand, has a big mix of local and global systems, some Peoplesoft, some SAP.

AT SAP, we believe that standardization and making use of technology effectively are key to achieving profitablity for BPO providers, and ultimately for the long term success of the concept.

If you are interested in picking up more about Morgan Chambers and SAP views on BPO, I suggest you have a listen to this webcast at the bottom of this post. (excuse formatting – the fancy HTML invite and my minimalist blog look clash..)

If you are looking at BPO as a customer, then this may help you figure out some of the questions you may want to ask your provider.


June 28, 2006, 10am EDT / 4pm CESTJoin SAP and Morgan Chambers for this free online seminar ´Hosted by SAP and outsourcing advisors Morgan Chambers, this webinar will address why sustainability is important in today’s BPO marketplace, the benefits of standardisation and the leverage of technology in order to successfully achieve this goal.Wednesday, June 28, 2006.
10am – 11am EDT / 4pm – 5pm Central European Summer Time
Creating Sustainable BPO Relationships
Recently, the BPO marketplace has seen a shift change towards a focus on creating sustainable Outsourcing relationships. Although there is still a recognition that short term cost savings will be a factor in any BPO transaction, executives are now looking to achieve more long term benefits from their Outsourcing contracts.
Targeted at BPO decision makers, analysts and providers, the Webinar will provide in-depth information on

: 1. What typifies sustainability for both the client and the vendor in today’s BPO market

2.   Why companies should be looking to achieve sustainability, including a comparison and contrasts between contract and relationship styles in Europe and North America

 .   The impact of standardisation on achieving sustainability in B'PO

4.   How technology can be used as a lever to support sustainability, and especially standardisation

5.   Which aspects need to be considered when choosing and implementing the underlying technology solution for BPO.

A case study will illustrate how one organisation has utilised standardisation, both on a process and technology level, as key to transformation and the achievement of long term sustainable benefits. Attendees will have the opportunity to post questions to the speakers for discussion at the end of the event.
Registration for this event is free. To register, please click here. For further information, please contact Helena Mancini at Morgan Chambers or Sebastian Burgarth at SAP.


2 thoughts on “BPO and standardis(z)ation”

  1. I was working with Unilever when this was announced, and I’d like to know if all the productivity losses from people worrying about their future and looking for alternatives / places in the new entity are also counted in when they start looking at productivity. Also, from the job the people in question did there, I have no clue how Accenture will be able to do this any cheaper. Interesting to watch from the outside, would hate to be on the inside…

  2. Interesting that Unilever may be going up on disparate systems. I see several problem with this systematically. First, the data integration can happen at the data warehouse level, but even that is questionable. Core tables all have to be updated appropriately, but they also have to be coordinated so that downstream analytics will be supported as well. Ultimately, doing HR and payroll on different systems is not terrible. However, the downstream processes that may be impacted are at serious risk. I hope there’s been some serious analysis to the total impacts prior to making that decision.

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