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APAC BPO MARKET REPORT 2019
BPO Customers are dissatisfied with the innovation and tech leadership from BPOs
BPOs need to lead with more transparency, analytics and new skills
BPO IN THE 2020s:HOW LEADERS WILL BE POSITIONED
A P A C B P O M A R K E T R E P O R T 2 0 1 9
CONTENTS
EDITOR'S LETTER .................................................................................................. 1
EXECUTIVE SUMMARY ..................................................................................... 2-3
INTRODUCTION ............................................................................................... 4-5
BPO CUSTOMERS: DEMANDING A PROACTIVE APPROACH ..................... 6-14
BPOs: FACING AN UNCERTAIN FUTURE .................................................... 15-21
SUMMARY ............................................................................................................ 22
TIPS FROM A LEGAL PERSPECTIVE .................................................................. 23
Confidentiality Notice: Please note that the contents of this report
are confidential and contain proprietary and intellectual property of
Enlighten and SSON. Neither this report nor any of the information
contained herein may be reproduced or disclosed under any
circumstances without the express written permission of Enlighten
and SSON.
© 2018 Enlighten. All rights reserved. Confidential.
© 2018 SSON. All rights reserved. Confidential.
APAC BPO MARKET REPORT 2019
1
The Shared Services and Outsourcing Network
(SSON) in partnership with operational specialists
Enlighten has surveyed the Asia and ANZ market
to provide the clearest guide yet on customers’
expectations and providers’ reactions.
From the earliest days of Shared Services, Business
Process Outsourcing (BPO) has been a key plank
in optimising performance. Over the past decade,
however, technology shifts have stood the original
BPO value proposition on its head.
Today, customers want more than just lower cost
resources or to offload tasks.
Corporate clients are demanding a new proposition
from their BPO partners.
What emerges is the disappointment customers feel
with the lack of transparency, technological innovation
and strategic support offered by outsourcers.
In fact, customers indicate that as they target
performance improvement they feel that they are
moving faster than the BPOs, often providing their
own resource support to push innovation forward.
This report highlights just how mismatched providers’
and customers’ expectations are. It reveals how
customers are leveraging their own capabilities,
particularly in disruptive technology, to drive the
improvements they so desperately need, exposing
some worrying gaps. Plus: what customers are doing
about it.
Read on to find out more.
Barbara Hodge
Global Editor
The Shared Services and Outsourcing
Network
Editor’s Letter
2
APAC BPO MARKET REPORT 2019
Note to Industry
When we partnered with the SSON to conduct this
industry report, we didn’t know what we would find.
But we sensed change was afoot.
BPO leaders are positioning for the 2020s. While the
BPO industry continues to grow globally, it is faced
with increased competition from new disruptive
technologies and digital automation. But there are key
actions that BPO leaders are taking.
BPO leaders must act on the key messages
from the surveys, interviews and insights that make up
this report:
Customers want (but are not getting) their BPOs to
aggressively drive improvement initiatives driven by
innovative technology and operational excellence;
Customers complain that providers are acting
as processing ‘black boxes’ and are not being
proactive and pre-emptive in offering solutions to
customers;
Too often, customers feel they are leading the tech
innovation drive, mobilizing their own resources to
achieve results;
While some BPO providers are changing and
transforming, this is not being communicated or
understood by customers. They see a traditional,
static industry.
WHAT ARE LEADING CUSTOMERS DOING TO
PREPARE FOR THE 2020s?
Leading customers are driving a process of demanding
more transparency from their BPO providers.
They want to see both the plans and the results of
service quality improvement programs, headcount
efficiency strategies, employee engagement initiatives,
and more – including a shift to output based contracts
versus traditional resource-based contracts.
Brent ChurchillCEO and Co-FounderEnlighten
Brent has over 25 years’ experience transforming operations across multiple sectors and locations around the world. His vision is to empower businesses and their people to deliver outstanding outcomes across all KPIs.
Previously, Brent worked for multiple advisory firms, including his own, across a diverse range companies in Australia, Europe, the Middle-East and Asia identifying and delivering unique solutions through management systems and process change designed to enhance the customer and staff experience and deliver sustainable bottom line results.
Brent is a regular contributor to CEO Magazine where he shares critical business and leadership insights
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APAC BPO MARKET REPORT 2019
Customers are seeing BPOs providing value in output-
based contracts through gain-sharing in technology
wins and effective management of their people.
The days of handing a process over and paying the
bills are long gone. To be clear, leading BPO customers
don’t want to interfere with the operations of their
outsourcing provider.
But they do want data and strong evidence
demonstrating that their supplier is driving a better
customer experience and focused on cost and
operational excellence.
BPOS NEED TO DRIVE DEEPER CUSTOMER
ENGAGEMENT
On their part, BPOs need to create visibility of what,
exactly, is happening in the daily operations of a
business and regularly communicate that to their
customers.
This visibility can only be achieved with the
introduction of a continuous improvement system
that adopts a solid, metrics-based approach to daily
management.
Key steps need to be taken to be a BPO leader
in the 2020s. Many will fail to do so, because of
inertia, complacency, locked-in contracts, or simply
management’s unwillingness.
THE FUTURE
The next few years will be fascinating. Many BPO
contracts are into their fifth, sixth, or more, iteration.
The industry is growing but technology disruption is
changing the business model.
To succeed in the 2020s, BPO providers must meet
the new BPO customer expectations by providing
solutions that demonstrate transparent value. This
is critical to safeguard the continued investment in
their services.
4
APAC BPO MARKET REPORT 2019
4
APAC BPO MARKET REPORT 2019
Introduction: An Industry Under PressureBusiness Process Outsourcing has always presented a
lucrative opportunity for Shared Services Organisations to
tap into third party skills and technologies that they could
not otherwise access. In the early days, labour arbitrage
acted as the principal attraction, driving and defining
BPO’s value proposition.
Today, however, strategic partnership, performance
improvement and transformation are the name of the
game. Clients’ commitment to BPO is still there and
growing, but their disappointment with the lack of
proactive, improvement-driven insights and support is
clear.
BPOs are undoubtedly feeling the pressure to move
towards a more strategic, transformative alliance. The buy
side is not convinced, however, that BPOs have the skills
and capabilities they need.
Robotic Process Automation (RPA) provides a touchless
and transparent alternative for transactional activities
that were traditionally prime candidates for outsourcing.
However, RPA doesn’t ask whether the activity needs to
be done at all, or whether there is a better way.
RPA can achieve savings but, in isolation, misses the
opportunity to dramatically improve process outcomes,
quality, costs, and cycle times.
BPO’s expertise in robotics, data and artificial intelligence
is sorely lagging and providers are all too aware of it, as
this report makes clear.
With the risk of services being brought back inhouse
and customers taking a closer look at the true value
of outsourcing, the new-style BPO will need to offer
customers the transformative partnership they are looking
for to drive performance forward via more data analytics
insights, robotisation, and – above all – transparency.
More simply put: Customers want a more innovative,
engaged customer service that reflects their goals of
engaging their own customers, differentiating themselves
from their competitors, and driving significant efficiency
improvements.
The imperative for change is clear. Providers need to react, and react quickly.
5
APAC BPO MARKET REPORT 2019
Customer Intimacy versus Skills Expertise
Process Complexity
Cu
sto
me
r In
tim
acy
/ D
om
ain
Sp
eci
alis
atio
n
Focusing on shifting the automation frontier....
Form Based Data Entry
Data Rectification
Invoice Payments
Receipting
Customer voice reception
Compensation Payments
Customer Voice - Customer Service
Contract negotiation
Customer Voice - Sales
Written Customer Communications
Process Improvement
Customer Relationship Management
Expert Decision Making
Customer Communications Design
Workforce Planning
Low Level Complaints Handling
Business Systems Support
Debt recovery
Traditionally, BPOs have sat in the bottom left quadrant – performing simple repetitive tasks
with low level customer service. As the industry changes and demands on BPOs increase, the
challenge is for BPOs to shift their offering into the top right quadrant. How they do this is what
most clients are querying.
In my experience, it is not up to the client to drive this change. Instead, it needs to come from the
BPO. Operational excellence needs to be embedded in their organisational values and culture.
Ideally, the BPO would utilise a set of tools that would enable both them and the client to
monitor and improve processes and make decisions based on data and analytics. In my view,
any BPO that gets this right will succeed in fostering strong partnerships with its clients, and
therefore meet that need for customer intimacy that clients are actively seeking.”
Tim Johnson, Strategic Leader with a strong history of business transformation
6
APAC BPO MARKET REPORT 2019
BPO Customers: Demanding A Proactive Approach
Across the APAC and ANZ markets, customers are still
highly bullish about the continued growth of their BPO
activities over the next year. Nearly 3/4 of the organisations
surveyed confirmed that they expect to increase their
outsourcing activity.
Despite their concerns [see below], cost savings and
operational benefits still work in favour of outsourcing as a
performance strategy.
However, the decision around BPO selection will be
increasingly oriented towards those providers that can offer
the partnership, engagement, innovation, capabilities and
skill sets that customers are now demanding, as this report
highlights.
The focus for the year ahead is specifically on driving more
value. That means just doing the same won’t be enough.
As becomes clear later in this report, customers want
more ‘visibility’ as a means of measuring more ‘value.’
Operational leaders have recognised that without visibility
they can’t measure performance nor manage it, so they
need transparency and the tools to evaluate where waste
and downtime are driving inefficiencies. Value, in other
words, is driven by end-to-end workflow visibility.
Bullish on outsourcing, but unhappy with quality and technology
For Allianz, effective systems and
processes are fundamental to the success
of our relationship with our BPO. We utilise
a tool that provides a clear line-of-sight
around efficiencies, quality, incident waste
and activity-based costing.
With the right data metrics to hand, there’s
better visibility over operations and the
ability to make real-time decisions. Our
BPO team can then, in turn, use this data to
show both problems and improvements in
the quality of work delivered. Transparent
systems and processes are a win-win for all.”
Matthew Wood
General Manager, Customer & Partner Services
Operations, Allianz Australia Insurance Limited
7
APAC BPO MARKET REPORT 2019
As a BPO customer, how optimistic is your organisation about the growthof your BPO activities over the next 12 months?
50%
Somewhat optimistic
24%
Neutral
2%
Not optimistic
24%
Very optimistic
12%
What key business challenges does your organisation face when it comes to outsourcing?
Lack of customer centricity
Time zone issues
Cultural disconnect
Lack of innovation or technical leadership
Price / Value OtherContract / incentives are
outdated (e.g. not outcome oriented)
29%
48%
21%
32%
12%
44%
3%
What are the primary drivers that led you to outsource business processes?
0
20
40
60
80 71%
47%
11% 11% 8% 5%
29% 26%18% 18%
Cost savings
Operational benefits
Scale 24/7 services
Non-core activities
Accessing technology
Customer service
Talent/Staff
availability (e.g. peak demand)
Agility Other Languages
What BPO Customers Are Saying
8
APAC BPO MARKET REPORT 2019
ConcernsDespite the continued enthusiasm for BPO, there are plenty
of concerns around current outsourcing practices.
The biggest complaint concerns the lack of innovation and
technical leadership on the part of BPO providers.
Customers know that new technology solutions that can
ratchet up performance are flooding the market but are
frustrated at the lack of initiative they are seeing from their
BPO partners.
Some customers are responding by offering financial
incentives for BPOs to come up with new ideas to leverage
automation. Others are trying to overcome this gap by
complementing outsourced resources with their own
internal resources, and having internal teams lead the drive
to innovate. The majority, in other words, are relying on
their own inhouse capabilities to make up the shortfall.
Customers want a more tailored service from providers
that better aligns providers’ support with their objectives.
Their frustration is confirmed in the low ratings allocated in
this survey to providers’ offerings of ‘customer-centricity’.
‘Customer-centricity’, in fact, is the second biggest
challenge organisations face in outsourcing.
Yesterday’s templated approach, in other words, isn’t
working anymore. Many customers are addressing this by
providing more guidance around their service expectations,
leveraging their own customer service resources, and
taking the time to explain their business priorities to BPOs.
From a BPO perspective, relationship
development is key. The majority of our
business is won through established
relationships.
As Australia’s largest BPO, our clients value
the personal touch we bring to the table.
Our agility and scalability are attractive to
clients who can use us to assist with the
seasonality of their business.
Additionally, we have the resources
to allow clients to trial new processes
or technologies that provide them
opportunities to benchmark standards.
Having close relationships with our clients
ensures that we provide them with the
appropriate service they require to meet
their needs."
Blaine Slater
Group Executive - New Business
TSA Group Australia
9
APAC BPO MARKET REPORT 2019
One thing many BPO customers agree on: they would like
more face-to-face engagement with BPO providers and
complain of a general lack of problem-solving capability
and end-to-end process awareness.
This speaks to a more holistic level of support and
understanding of BPO customers’ objectives, which, as
the charts show, include the impact of services outside
those covered by the agreement, performance metrics and
business insights.
The cultural disconnect customers are feeling may be
part of the problem. Lack of cultural engagement carries a
cost, not just in terms of understanding but also in terms
of missed opportunities.
Customers that are concerned about this disconnect tell
us they are working to overcome it by leveraging bridging
coordinators or even rotation programs that support
greater awareness of customers’ sensitivities on the part
of the provider. Open and transparent discussions, most
agree, are key to progress.
Another challenge concerns the outdated contracts and
incentives that don’t reflect the output-oriented agreements
that would encourage BPOs to take on more risk for more
reward – in other words, have skin in the game.
Again, financial gain-sharing is being tested as a means of
driving an outcome-based approach that plays into both
parties’ sweet spots.
As a leader of a financial services
institution, I believe the success of any
client and BPO partner relationship
comes from having a wholistic view
around analytics, technology and process
capability.
Building a solid relationship with a BPO is
essential to achieving this. Understanding
the BPO’s cultural nuances and engaging
in open discussions to ensure a thorough
understanding of what is required from
them is what influences excellent service.
From the BPO's perspective, an open
and honest relationship is important, and
making decisions with this in mind will lead
to a successful partnership.”
Senior Executive Director
Leading Australian Bank
Transactional Supplier
ThroughputFocus on inputs
SLA mindsetResource based
Arms LengthMy Way
How does the relationship develop = Transparent ValueWhat are BPO clients looking for in their relationships?
APAC BPO MARKET REPORT 2019
10
Trusted Advisor
TransformationFocus on outcomes
Business value Output basedSeeks input
Together
OR
11
APAC BPO MARKET REPORT 2019
What are the major issues BPO customers have with BPOs?
0
10
50
30
47%44%
32%29%
21%
12% 12%
Lack of innovation
or technical leadership
Lack of customer centricity
Cultural disconnect
Time zone issues
Contract / incentives are outdated (e.g. not outcome
oriented)
Price / Value
Other
12
APAC BPO MARKET REPORT 2019
Opaque Systems and Processes
Many BPO customers expressed concerns around systems
and processes – primarily a lack of transparency in
monitoring quality and data security.
These are very real concerns that outsource providers will
need to resolve to (re)gain the trust of their customers,
particularly as consistency and reliability are highlighted
as critical for the end-user experience. Prioritising visibility
and transparency when it comes to service quality will be
a big step forward in the right direction.
Data security, in particular, presents a challenge to their
provider’s ability to leverage business intelligence for
improved performance. Solving the security dilemma
should, therefore, be a priority.
What are some of the key systems / process concerns your organisation
has in engaging with BPOs?
Tools to monitor quality (transparency)
Data / information security
Lack of control
Lack of self-service options
Loss of process intimacy inhouse
Lack of process automation (in BPO)
Customer data fragmentation
Other
10%48%
36%
32%26%
26%
13%
23%
My comfort with the quality and
efficiency of offshore operations is reliant
on the depth and quality of operational
reporting.
Given I have less opportunity to develop
personal relationships with Senior Managers,
I like to have access to dashboards that
provide full transparency on the current and
forecast service positions of the teams.
Trusting that my offshore [captive] teams
have the integrity to report on the good, the
bad and the ugly…allows me to empower
them to make operational decisions day
to day.”
Matthew Wood
General Manager, Customer
& Partner Services Operations,
Allianz Australia Insurance Limited
13
APAC BPO MARKET REPORT 2019
Volume Over Spend
Over the next 12 months, in line with the expected growth
in BPO activity (see below), just over half of the BPO
customers predict their overall BPO spend will increase.
What’s interesting is that when the same question is
asked around volume, 75% of the organisations expect an
increase.
So, the clear message is BPOs will need to leverage a
given budget for more volume, for example by using
process automation to scale.
The difference between spend and volume is greatest
in the segment that foresees a ‘significant increase’ of
activity, where the volume percentage is nearly three
times that of spend.
Over the next 12 months, what does your organisation’s BPO spending pattern look like?
Over the next 12 months, what does your organisation’s BPO volume of work look like?
50%
56%
23%
12%
18%
12%
9%
21%
We will significantly increase spending
We will significantly increase volume
We will moderately increase spending
We will moderately increase volume
There will be no change in spending
There will be no change in volume
We will decrease spending
We will decrease volume
14
APAC BPO MARKET REPORT 2019
Technology & People Determine Strategy
The primary driver for outsourcing is still predominantly
cost, with customers looking for more value.
But sourcing strategies hinge primarily on technology
and human resources. Most organisations are planning to
prioritise investing in both to optimise their capabilities,
whereby human resources emerge as the priority.
Yet, and contrary to often touted headlines, only one
in five organisations plans to invest in automation as a
means of reducing reliance on BPO. There is no evidence
in this survey that RPA is being seen as a potential
replacement for outsourcing.
Over the next 12 months, what best describes your sourcing strategy?
Investing more in human development of retained talent .........................................................32%
Investing more in automation to reduce use of BPO ..............................................................26%
Investing more in technology to get more value out of BPO or retained resources ..........23%
Increasing BPO spend to support growth and enable the retained team to focus on higher value service delivery ........ 19%
15
APAC BPO MARKET REPORT 2019
BPOs: Facing an Uncertain Future
The BPO industry is all too aware of the pressures weighing
down on its traditional model. What the survey shows us
clearly is that outsource providers recognise their main
challenge, if not risk, as deriving from Artificial Intelligence
(AI) and robotics, and the potential impact from customers
shifting work back in-house. In addition, providers are
candid in recognising the difficulty of meeting customers’
high expectations given their gap in talent and skills.
Artificial Intelligence and Robotics present ‘threat’
Over the next 12 months, what are the key business challenges and risks facing the BPO industry?
0
20
40
30
10
50
6055%
35%
17%14%
3%
34% 34%32% 31%
AI and robotics
Talent, skills and availability
The shifting of work back in-house
Contract model / Pricing
structure
Laws, regulations and geo-political factors
Trend towards smaller
contracts and multi-sourcing
of BPO vendors
Customer experience / Customer expectations
Data Analytics
Other
16
APAC BPO MARKET REPORT 2019
Challenges
While the challenges are abundantly clear, however, what
is not so clear to providers is how to overcome them.
With regards to robotics and AI, for example, providers
cite lack of talent available as well as cost and time to
upskill staff as significant hurdles. The lack of overall
‘expertise’, in fact, is reflected in the frequent references
to 'skill-based' gaps.
This skill gap, although widely recognised, is not easily
solved. The trend toward more knowledge-based work
presents one challenge, with many providers complaining
that what they need are not generalists but specialists,
but that academic institutions are still providing primarily
generalists – thus exacerbating the problem.
Another challenge is the gap in data analytics capability,
which means providers are not able to effectively evaluate
their own performance to identify opportunities for
improvement. The combination of legacy systems on the
one hand, and lack of data management expertise on
the other, are hindering their ability to analyse their own
processes. Both from a talent as well as systems and tools
perspective, BPOs confirm data analytics as an 'evolving’
and ‘developing' space that will require more attention.
In addition, outdated contract models and pricing
structures don’t support the shift from ‘supplier’ to
‘partnership’, providers complain, although many are in
the process of shifting from plain vanilla to outcome-
based contracts, in line with customers’ preferences. A
common concern, however, is that customers persist in
adding tasks outside the contract, and that margins are
thus tightening while the scale of work that would make
these operations sustainable is missing.
17
APAC BPO MARKET REPORT 2019
(Automation + Data) x Workflow = Power
Technology is the key to many performance improvement
challenges. RPA, in particular, presents a lucrative
opportunity for providers – but also a threat to their
sustainability, as they recognise – and this is, indeed,
where most are focusing their attention.
Alongside improved automation capabilities, however,
BPOs also intend to develop their end-to-end workflow
expertise as well as data analytics as core competencies.
In combination, workflow, data, and robotics present
a powerful problem-solving solution that providers
recognise they need to leverage for their own internal
operations, as much as they need to provide to customers
via improved services.
How are you, as a BPO provider, planning to take advantage of rapidly evolving technological changes?
Develop end-to-end workflow expertise
Develop robotics
automation capability
Develop data analytics capability
Shift to knowledge-
based services
Improve integration with client’s
systems
31% 30%
55%
Partner with specialist
technology solutions
firms
28%
Other
1%
37%
Develop data extraction/
management capability
21%
54%
18
APAC BPO MARKET REPORT 2019
Despite the emphasis on RPA, however, the capabilities
that BPOs believe will be most significant for their
competitive survival are cognitive and artificial
intelligence. These ‘learning’ solutions leverage data to
provide valuable insights on providers’ own performance,
as well as for their clients, and BPOs are clearly aware of
the impact on their operations. Cognitive and AI represent
the next step in intelligent automation, beyond simple
rules-based bot-run transactions. The ability to analyse
their own operational data will provide the kind of insights
that will drive BPO’s own efficiencies, while the skills thus
gained can also be packaged into improved customer
services.
Over the next 12 months, what single technology capability will be the most important for BPO organisations to remain relevant
and competitive?
Data Management and Analytics
Robotic Process Automation
Cognitive Solutions and AI
Other
29% 26%
Cloud Services
Blockchain
20%
20% 3% 1%
19
APAC BPO MARKET REPORT 2019
Customer Experience Drives Value
The key for providers to maintain their validity as a
sourcing solution of choice is to demonstrate the value
their customers are demanding.
Overwhelmingly, providers identified customer experience
as the leading measure of value, while also claiming that
their ability to empower customers through technological
innovation – even leadership – was key.
Similarly, while providers acknowledge the importance of
providing output-based services, customers feel they are
not being listened to, and are offered templated solutions
that don’t provide enough transparency.
BPO providers may be justified in feeling they are up
against a wall. Many complain that customers are
pressuring them to lower prices while demanding
improved quality of service as well as more tailored
[i.e., customer-centric] and even localised solutions.
And yet, this is where customers perceive providers as
falling down, claiming that precisely this leadership and
drive to leverage innovation is missing (see below).
How are you, as a BPO provider, demonstrating value to clients in the current environment?
0
20
40
30
10
60
70
50
8075%
48%
6%2%
43%
37%
31%
18%
Delivering excellent Customer
Experience (Cx)
Empowering enterprises
thru technology/innovation leadership
Offering a cost
advantage /competitive
pricing
Reflecting customer
priorities via output based
services
Offering new / additional
services
Enabling 24/7 support or expanded
hours coverage
Providing language
skills difficult to obtain in-
house/locally
Other
20
APAC BPO MARKET REPORT 2019
What is the biggest demand made by customers that is drivingchange in your organisation?
Improved quality of service
36%
More tailored service29%
Reduced price / more value for same price
54%
Output based contracts11%
Scalability 28%
More automated
service23%
More data analytics 20%
More localised service 14%
Improved speed of
service29%
21
APAC BPO MARKET REPORT 2019
To survive, providers will have to invest heavily in new
technology, improved skillsets, and customer experience
over the next 12 months, to overcome the gaps in their
own operations that are limiting customers’ perception
of value. Customer experience training, in particular, is
under the spotlight, with eight out of 10 organisations
confirming they plan to increase the level of customer
service training currently offered to their staff.
Over the next 12 months, what are the key areas that your organisation is investing in?
Talent acquisition
Talent retention
Acquisitions Expanded services
Customer experience
Skills enhancements
OtherTechnology
2%
Over the next 12 months, to what degree do you plan to modify customer experience workforce training?
Increasing a lot
56%
Increasing somewhat
31%
Anticipate the same as the last 12 months / no
change
8%
Not currently offering/focused on Cx workforce
training
6%
35%
29%
17%
43%43%
55%
45%
22
SummaryThis report clearly highlights where customers’ expectations and providers’ capabilities diverge.
The key stumbling block, according to the survey, is that there is a major mismatch between BPO customers and providers.
The dissonance is that BPO customers believe they don’t have enough visibility (transparency) over their outsourced services.
They only see a black box that does not show them where quality is failing or cost efficiencies are being pursued. The underlying belief is that this lack of transparency is obscuring significant inefficiencies.
At the same time, customers realise that the combination of improved workflow, automation, and data analytics could be supporting significantly improved performance. But they see no evidence that this is happening.
So, while organisations still plan to expand their use of BPO and expect to spend more money on outsourcing, they also recognise and identify shortfalls on the part of providers.
Providers, on the other hand, feel threatened by customers’ rising expectations and their inability to meet these expectations due to skills and tool gaps in key areas (which they acknowledge).
These gaps are worrying for two reasons: First, they limit BPO providers from optimising their own performance; and second, providers risk falling behind by not packaging these capabilities into improved services.
Providers are clearly planning to address these shortfalls over the coming year. Most are opting for tactical improvements through a combination of RPA, end-to-end process expertise, and data analytics.
A smaller segment recognises the general shift towards knowledge-based services and improved integration with client systems as key investment priorities.
It is imperative that outsource providers do what they tell us they are planning to do: Invest in technology, skills, and customer experience training.
If BPOs do not, quickly and effectively, reposition themselves to address the BPO customer’s demand for transparency, innovation and technical leadership, then the message is clear.
BPO customers will increasingly move to drive the high value transparency and innovation activities inhouse by building and leveraging their own Centres of Expertise to advance their goals.
APAC BPO MARKET REPORT 2019
23
APAC BPO MARKET REPORT 2019
Mick Coleman, a Corporate Advisory partner at law
firm Mills Oakley, works on both the client side and
the provider side of outsourced business processes.
A quality outcome, he says, should not require large-
scale continuing investment of resources from the
client, but it does mean an initial commitment of
skilled process designers and contract managers to get
the set-up right.
“The BPO provider’s business model relies on being
easy to do business with, so it’s their job to get the
engagement right. But part of that is to be honest and
advise the client on what the client needs to bring
in terms of resource commitment, skills and internal
set-up to extract best value,” says Mick, who often
sees problems arise early in an engagement due to the
natural inclination of both sides to overstate savings
and benefits, which leads to skimming over details.
“What looks like a saving, based just on a lower
hourly or per-task charge, can quickly turn illusory if
parameters are fuzzy or generic terms are offered up.
All of us love the ‘click to agree’ online services model,
and businesses want everything to work like that. But
it just doesn’t for more complex functions, particularly
where human beings deliver the services.”
LEGAL POINTERS MICK OFFERS INCLUDE:
Spend time not just writing KPIs, milestones and
metrics, but planning how they will be compiled,
reported and used. Don’t demand reports that no-
one reads.
On the client side, consider whether your
bespoke requirement is worth it. As you diverge
from the provider’s standard offering, you are
losing what should be the benefits of using a
provider – comparability, common experience,
and improvements across their client base.
Customisation can make sense but be realistic
about what’s being given up.
Hard-wire in that the provider must add business
value. It is easy for the client to say, “You must
comply with applicable laws and our policies,” and
leave it there. But actually, it helps both sides when
the provider is loud and proud about its standards,
and uses its shared good work on privacy, equal
opportunity, data security, anti-slavery, anti-money
laundering, etc., as selling points for staff and end
customers.
Tips from a Legal Perspective
Mick ColemanPartner, Corporate Advisory
Law Firm of the YearThe Australasian Law Awards, 2017
Mick Coleman is a leading Australian commercial and competition lawyer with deep knowledge in the IT, e-commerce, telecommunications and energy sectors. He is valued by clients for contracts and negotiation skills, work on business improvement projects and compliance / advisory expertise. Drawing on over a decade as a senior lawyer at Telstra, Mick brings particular expertise in working with complex organisations and contract structures. Mick’s clients have included Optus, SP Ausnet, Origin Energy, Elecnor SA, Telstra, Wilson Parking, United Energy, Brisbane Airport Corporation, the Australian Business Register (ATO) and a wide range of SMEs.
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APAC BPO MARKET REPORT 2019
Enlighten is a global operational excellence firm.
We transform the major processing areas of large
companies. Our clients come to us to transform their
big back offices, processing areas, shared services, and
BPO engagements.
We get large, rapid results. We’ve done it +100 times
for 50 major organizations. Enlighten drives huge
gains in quality, service speed, employee culture, and
operational costs. We do this with our unique blend
of operational methodologies, our analytical SaaS
software, and extensive coaching.
The Enlighten solution is an integrated operations
management system that delivers sustainable
improvement and inspires managers to proactively
ABOUT ENLIGHTEN
lead through a strong change management focus.
We believe that ‘high performance’ hails from
exceptional management behaviour fuelled by proven
methodologies and sophisticated technology.
It’s a defined and methodical process and we are
hands-on, working through to implementation and
sustainable outcomes.
We believe Operational Excellence arises from
exceptional management behaviour guided by
solutions that are innovative, effective and practical.
We are different in that our approach is founded on
hands-on methodologies, on-the-job coaching,
training and proven change management practices.
ABOUT THE SHARED SERVICES & OUTSOURCING NETWORK (SSON)
SSON is a one-stop shop for shared services
professionals, offering industry-leading events,
training, reports, surveys, interviews, white papers,
videos, editorial, infographics, and more.
www.ssonetwork.com
The Shared Services & Outsourcing Network (SSON)
is the largest and most established community of
shared services and outsourcing professionals in the
world, with over 125,000 members.
Established in 1999, SSON recognised the revolution in
support services as it was happening, and realised that
a forum was needed through which practitioners could
connect with each other on a regional and global
basis.
Research Methodology
Research design and analysis for the Enlighten APAC BPO Market Report 2019 was conducted by SSON, with field work conducted by Enlighten.
Our research is based on survey responses and direct interviews with C-level executives and industry consultants from a diverse range of industries including business and finance, insurance, health, BPO, retail, FinTech and telecommunications.
The in-depth interviews with industry executives were conducted in person and via phone to gain an insight into the underlying motivations, beliefs, attitudes and feelings of interviewees on a range of timely and relevant subjects.
Some findings do not add up to 100 per cent due to the question being open to multiple responses.
Any reproduction of this material must credit Enlighten. This report may be cited as: Enlighten APAC BPO Market Report 2019, Sydney.
For more information regarding the research, or if you are an industry executive and wish to register your interest in future interviews and reports, please contact Helen Mackay at Enlighten on +61 (0) 2 9232 2771 or helen.mackay@enlighten-opex.com.au
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APAC BPO MARKET REPORT 2019
@enlightenopex enlighten-operational-excellence Enlighten Opex
www.enlighten-opex.com.au
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