Motivations for Outsourcing Are Moving Beyond Cost Reduction

by Jill Diedrich on December 27, 2011

There has been a shift in what customers are looking for from a BPO company. For years customer strategies were focused solely on labor arbitrage. They wanted to utilize offshore resources to lower costs.

Today, while cost is still an issue, customers’ motivations are changing, a new study shows. That study, by HfS Research, found that increasingly, customers are focused on achieving greater flexibility to scale their global operations.

The finding came from the recent study in which 534 buyers, advisors, and providers shared their sourcing strategies in the event of a double-dip recession.

Business Process Outsourcing | BPO | Screen shot 2011 12 21 at 5.38.19 PM

Among the findings:

  • 80 percent of buyers are willing to move onto standard processes. They seem unconcerned if competitors use the same process. They are more interested in adopting quality process flows that maximize efficiency.
  • 76 percent of buyers said the need to have more flexibility to scale global operations is a motivating factor for outsourcing.
  • 76 percent of buyers are motivated to outsource because they want better technology support.

These findings show that more than ever companies are looking for more efficient processes.  BancTec has found that companies are attracted to a holistic methodology that analyzes and optimizes a process before outsourcing it. We call it Intelligent BPO, or iBPO.

To learn more about the HfS Research study, click here.

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