bpo whitepaper business process transformation 0512-1

7/31/2019 BPO Whitepaper Business Process Transformation 0512-1

1/8

Business Process

Transformation

A P u lse C heck

O ver the last decade o r tw o , tw o trends have b een

no ticeab le acro ss all b u sinesses. The m o ve to w ardsco nso lidatio n o f o f f ice- b ased o peratio ns, w hether

f ro nt- o f f ice, m id- o f f ice o r b ack - o f f ice, and increase in

regu latio n and go vernm ent o versight. These m o ves

have su b stantially increased the pressu re o n the

o peratio ns team to deliver valu e as a b u siness partner

to the o rganiz atio n. The recent glo b al f inancial crisis

has no t helped either it has starved the C X O s o f

f u nds w hile the pressu re to drive ef f iciency and

ef f ectiveness, and the pressu re to transf o rm

co ntinu es.

This paper perf rm s a pu lse check n the need f r

b u siness transf o rm atio n in the cu rrent co ntex t, and

the po tential areas that a pro vider can help w ith.

W hite P aper


2/8

2

About the Author

Shyam Kerkar

AVP & Head, Marketing for Business Process Services.

S hy am is the H ead, Mark eting f o r Tata C o nsu ltancy S ervices

B u siness P ro cess S ervices u nit TC S B P O . H e has b een

instru m ental in ensu ring that TC S B P O receives the b rand

reco gnitio n it deserves glo b ally , in captu ring the appro priate

m indshare w ith inf lu encers and, in assisting TC S vario u s

cu sto m ers in identif y ing new areas to ex pand relatio nships

w ith TC S .

W ith TC S f o r 1 4 y ears, S hy am has b een invo lved in vario u s ro les

that ensu re that TC S pro spects and cu sto m ers E x perience

C ertainty . P rio r to his cu rrent ro le, S hy am w as a leading m em b er

o f TC S B P O s pre- sales team and w as instru m ental in identif y ing

inno vative so lu tio ns f o r pro spects. P revio u sly , he has m anaged

cu sto m er relatio nships and has b een respo nsib le f o r the deliver y

o f a nu m b er o f large pro gram s.


3/8

TC S recently co ndu cted a b lind su rvey acro ss b ers, adviso rs and su ppliers to gau ge w hat each o ne o

them f elt ab o u t initiating a b u siness transf o rm atio n pro gram in the cu rrent m acro eco no m ic situ atio n

and to gau ge ho w they are go ing ab o u t it. W e received respo nses f ro m 1 00+ b u y ers, 2 5 + analy sts and

adviso rs and 6 0+ su ppliers. W e have a cro ss- sectio n o f the b u y er co m m u nity represented in this su rvey

w ith su b stantial representatio n acro ss segm ents.

Ins u rance

S ervicesS / W , H / W

O ther

R etail & C P G7%

Travel & spitality

G o vt & P u b lic S ecto r

Media & IS 2%

Teleco m W & IS P

B ank ing &F inancialS ervices

23L S H C

Manu f ac tu r ing

1 , 0 00-1 0, 0 00

E m plo y ees26

1 0, 0 00 -24 , 9 9 9

E m plo y ees

25 , 0 00 4 9 , 9 9 9

em plo y ees7% 5 0, 0 00+

em plo y ees

7%

F ew er than1 , 000

em plo y ees22%

C - L evelE x ecu tiveC K O , etc.)

B U o rD epartm ent

Manager7%

IT o r ISManager

O ther2 %

D irecto r, E V P ,S V P , V P ,

C o ntro ller

B u y er Mix : Acro ss Indu stries

n = 103

Respondent mix across industries, designations and roles


4/8

TC S ask ed b ers and adviso rs to prio ritiz e the f acto rs to e co nsidered w hen em ark ing o n a

transf o rm atio n j o u rney to ef f iciency and ef f ectiveness. Mo re b u y ers cho se tim e to b enef it as o ne o f the

T p 3 acto rs than scale o f enef its tho gh scale o f enef its co ntinu es to rank as the single m st im po rtant

f acto r that b u y ers co nsider. It is also interesting to no te that the analy sts and adviso rs w ho cho se scale are

alm o st tw ice in nu m b er to tho se w ho cho se tim e to b enef it . Im m ediate realiz atio n o f b enef its co ntinu es to

lag b ehind as a critical f acto r w hen analy sts lo o k at it b u t b u y ers give it an o verall im po rtance rating alm o st

eq u ivalent to the scale o f b enef its. The latter is no t a su rprise given the cu rrent m acro - eco no m ic co nditio ns.

Buyers : Top 3 Factors Impacting Transformation Project Decisions

1 ( H igh Im po rtance) 2 3 ( L o w Im po rtance)n=780 1 0 20 3 0 4 0 5 0 6 0 70

O verall P ro j ect D u ratio n

S cale o f the b enef its

Im m ediately R ealiz ed B enef its

P eer G ro u p E x perience

In - ho u se ex pertise availab le

O ther

B u y ers co ntinu e to attach signif icant im po rtance to in- ho u se ex pertise availab le and peer gro u p ex perience

in cho o sing transf o rm atio n initiatives. As b u y ers m o ve to w ards a glo b al so u rcing m o del they can f ind the

right partner to su pplem ent the in- ho u se ex pertise.

Analy sts and adviso rs o verw helm ingly identif y aligning pro cesses to indu str y b est practices as the m o st

signif icant transf o rm atio n initiative. This is perhaps in line w ith their f o cu s o n the scale o f b enef it rather than

im m ediacy o f b enef its.

Indu stry b est practices evo lve o ver tim e and are co nsiderab ly im pacted b y the techno lo gy and inf rastru ctu re

availab ility at the tim e. Q u ite o f ten it is no t po ssib le to u ndertak e the m o ve to the go lden ideal w itho u t

m ak ing step changes in term s o f sim plif icatio n and harm o niz atio n.

Advisors : Top 3 Factors Impacting Transformation Project Decisions

0 1 0 20 3 0

O verall P ro j ect D u ratio n

S cale o f the b enef its

Im m ediately R ealiz ed B enef its

P eer G ro u p E x perience

In- h o u se e x pertise avai la b le

O ther

1 ( H igh Im po r tance) 2 3 ( L o w Im po r tance)n=25


5/8

W e also ask ed the b u y ers to tell u s ab o u t w hat has b een do ne in their o rganiz atio ns ab o u t the

transf o r m atio n initiatives and the activities that they w ere planning in the near f u t u re. S eek ing greater

insights f ro m availab le data is perhaps o ne o f the k ey item s that rem ains u naddressed acro ss m o re than 5 0%

o f the o rganiz atio ns. P art o f the reaso n f o r this co u ld also b e the b u y er perceptio n that analy tics ab ility

sho u ld b e delivered f ro m o nsho re o r nearsho re lo catio ns. The rapid em ergence o f so m e o f the lo w co st

lo catio ns in delivery o f K no w ledge S ervices co u ld see this changing.

0 5 1 0 1 5 20

G reater Insights f r o m D ata

P ro cess S im plif icatio n & R atio naliz atio n

P ro ces - Indu stry B est P ractices

P eo ple - S S C f o r S G & A f u nctio ns

P eo ple - C o nso lidate C O G S S ervices

Techno lo gy - Au to m atio n

Techno lo gy & Inf ra. Im pro vem ents

Advisors : Top 3 Transformation Init iatives

1 ( H igh Im po rtance) 2 3 ( L o w Im po r tance)

0% 20% 4 0% 6 0% 8 0% 1 00%

G reater Insights f ro m D ata


P ro cess - Indu str y B est P ractices

P eo ple - S S C f o r S G & A f u nctio ns

P eo ple - C o nso lidate C O G S S ervices

Techn lo gy Au to atio n


Buyers : Transformat ion Initiatives Undertaken

n=78

H ave no t do ne it H ave D o ne this in- ho u se H ave O u tso u rced this

Buyers : Analyt ics Service Delivery Location Strategy

Nearshore11%

Mix26%

Onshore47%

Offshore16%

n=105

n=25


6/8

The sam e q estio n also indicates that m re than 75 % f the o rganiz atio ns have already ndertak en so e

f o rm o f techno lo gy and inf rastru ctu re ratio naliz atio n initiative and a sim ilar nu m b er has attem pted

au to m atio n to elim inate lab o r.

Buyers : Transformation Init iat ives Planned

0% 20% 4 0% 6 0% 8 0% 1 00%

G reater Insights f ro m D ata


P ro cess - Indu stry B est P ractices

P eo ple- C o nso lidate S G & A f u nctio ns

P eo ple- C o nso lidate C O G S S ervices

Techno lo gy - Au to atio n


O u tso u rced - G ain S hare O u tso u rced F ix ed F ee O u tso u rced, m anaged b y b u y er In- H o u se

n=78

W hat is interesting is that b u y ers b elieve that there is a signif icant am o u nt o f activity that rem ains to b e

do ne in the Techno lo gy arena w ith m o re than 6 0% o f the o rganiz atio ns seek ing to o u tso u rce this in so m e

f o rm o r the o ther.

W e see interest in o u tso u rcing all activities that drive ef f iciencies and ef f ectiveness, w ith a sm all b u t

signif icant po rtio n o f b u y ers seek ing gain- share arrangem ents. This is even m o re evident w hen w e ask ed

b u y ers ab o u t o w nership o f specif ic aspects o f b u siness transf o rm atio n.

Acro ss the spectru m o f activities 3 0- 4 0% o f the b u y ers are cho o sing a co llab o rative appro ach to m anaging

transf o rm atio n initiatives. A pro vider w ho can o f f er co nsu lting and adviso ry capab ilities in additio n to b eing

ab le to drive im plem entatio n co llab o ratively w o u ld m eet the need o f the ho u r.


7/8

7

TCS FORE- The Right Partner for Business Transformat ion

TC addresses transf rm atio nal needs o f its cu sto er thro gh a co prehensive assessm ent m del

and a ro adm ap f o r o ptim iz ing b u siness pro cesses. F O R E drives accelerated co - transf o rm atio n thro u gh right

b alance o f scale and tim e to b enef it. Its dem o nstrated su ccess in gu aranteeing ro b u st ex ecu tio n, m itigating

risk and driving gro w th acro ss indu stries and peer gro u ps pro vides an added co m f o rt level to b u y ers.

Customer Perspective: Transformation init iat ives Ownership

0% 20% 4 0% 6 0% 8 0% 1 00%

O verall transf o rm atio n engagem ent

Techno lo gy change - design

Techno lo gy change - im plem entatio n

P r o cess change - design

P ro cess change- im plem entatio n

Third- party adviso r o r co nsu ltant O u tso u rced service pro vider

C u sto m er & pro vider co llab o ratio n C u sto m er

n=78


8/8

All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is

correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in

any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and

other applicable laws, and could result in criminal or civil penalties. Copyr igh t 2012 Tata Consult ancy Servi ces Limi ted T

esign

ervicesM

0

2

I

I

I

About Tata Consul tancy Services Ltd (TCS)

www.tcs.com

Tata nsu ltancy ervices is an IT services, co nsu lting and b siness so lu tio ns o rganiz atio n that

delivers real resu lts to glo b al b u siness, ensu ring a level o f certainty no o ther f irm can m atch.TC S ers a co nsu lting- led, integrated po rtf lio f IT and IT- enab led inf rastru ctu re, engineering

TMand assu rance services. This is delivered thro u gh its u niq u e G lo b al N etw o rk D elivery Mo del ,

reco gniz ed as the b enchm ark o f ex cellence in so f tw are develo pm ent. A part o f the Tata G ro u p,

India s largest indu strial co nglo m erate, TC S has a glo b al f o o tprint and is listed o n the N atio nal

S to ck E x change and B o m b ay S to ck E x change in India.

F o r m o re inf o rm atio n, visit u s at

IT S ervices

B u siness S o lu tio nsO u tso u rcing

Subscribe to TCS White Papers

TC .co m : http: .tcs.co rss_ eeds/ ages/ eed.aspx

F eedb u rner: http: / / f eeds2.f eedb u rner.co m / tcsw hitepapers

Contact

F o r f eedb ack o n this article and m o re inf o r m atio n, p lease co ntact u s at:

[email protected]

About TCS BPO

B u siness P ro cess S ervices ( B P O ) at TC S is ab o u t m anaging and ex ecu ting b u siness o peratio ns.

O u r do m ain e x pertise helps deliver co re b u siness pro cessing acro ss indu stries, analy tics and

insights, and su ppo r t pro cesses su ch as acco u nting, H R and su pply chain m anagem ent.

TC S partners w ith cu sto er to accelerate co transf rm atio n, and generates b siness valu e f r

cu sto m ers thro u gh delivery ex cellence, r isk m anagem ent and inno vative m o dels su ch as P latf o rm

B P O w hich delivers pro cess as a service. W ith annu al B P O revenu es o f greater than U S $ 1 b illio n,

TC S is o ne o f the largest B O pro viders w ith 3 000+ em plo ees servicing 1 75 + cu sto ers acro ss

the glo b e.

bpo whitepaper business process transformation 0512-1

Documents