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Enterprises Frustrated with their BPO Relationships

Through 2009, 50 percent of organisations involved in Business Process Outsourcing (BPO) relationships will experience cost overruns and unacceptable service delivery quality, according to Gartner. Gartner analysts attribute this frustration by enterprises to a lack of understanding of their specific BPO offerings in terms of market hype versus true market maturity.

"It’s clear that buyer’s across the market are experiencing consistent and pervasive hype concerning which processes and service providers can truly deliver on the promise of business process outsourcing," said Lisa Stone, research vice president for Gartner.

"Companies must set up an internal BPO strategy in order to block out the hype and determine the best offering for them to achieve their goals," Ms. Stone said. "This consists of measuring the environment, identifying the drivers behind why BPO is being considered and deciding which approach is best for entering into a BPO relationship. Then use a structured sourcing process through vendor evaluation, contracting and negotiating and creating an internal management support team to ensure that all details are in place to support the service before signing an outsourcing contract."

"Organizations that have adopted a multi-channel, multi-domain contact center, and realized its effectiveness, should only investigate outsourcing those functions or channels that aren't economically viable for them to maintain," said Matthew Goldman, research director for Gartner. "Midsize and smaller organizations that need to appear bigger than they are should investigate contact center outsourcing or globally delivered (offshore) contact center outsourcing as a potential solution."


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