apac bpo market report 2019 bpo in the 2020s: how … · the next few years will be fascinating....

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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.


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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


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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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


4


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


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


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

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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


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


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?


10

Trusted Advisor

TransformationFocus on outcomes

Business value Output basedSeeks input

Together

OR

11


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


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


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


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


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


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


(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


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


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


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


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.


23


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.

24


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 [email protected]

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@enlightenopex enlighten-operational-excellence Enlighten Opex

www.enlighten-opex.com.au

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