nasscom bpm summit 2014 : panel : curious case of hyper growth - tom ivory, hfs research

Architects of Global Business | Research Strategy Community

Curious Case of Hyper-Growth

NASSCOM BPM Summit

September 16th-17th, 2014

Tom Ivory

COO, HfS

[email protected]

© 2014 HfS Research Ltd. Proprietary │

How satisfied are you with your internal talent's ability to achieve the following business outcomes with your current outsourcing engagement(s)?

Client operations talent is still struggling with analytics, creative

thinking and building the external customer experience

Source: HfS Research State of Outsourcing Study 2014 conducted in conjunction with KPMG.

Sample = 312 Enterprise Buyers

4%

5%

8%

5%

6%

6%

11%

6%

12%

17%

20%

27%

28%

29%

38%

41%

40%

41%

47%

43%

51%

50%

40%

48%

36%

35%

30%

29%

27%

29%

22%

20%

22%

24%

17%

23%

18%

19%

20%

18%

16%

20%

11%

7%

5%

2%

4%

4%

5%

5%

3%

2%

3%

1%

1%

0% 25% 50% 75% 100%

Accomplish new innovations/creative ideas with service delivery

Improved analytical capabilities

Better automated processes

Better transformed/reconfigured processes

Aligning stakeholders across the organization to achieve better results

Adding strategic value to the business beyond standard operations

Work collaboratively with the provider(s) to deliver higher value

Better standardized processes

Achieving significantly lower operating costs

Keeping the standard operations ticking over efficiently

Meet compliance/regulatory requirements

Very satisfied Satisfied Neither satisfied or unsatisfied Unsatisfied Very unsatisfied


Q. How important are the following business benefits that you EXPECT to be achieved from your company's current IT outsourcing and BPM experiences over the next two years?

Service providers are being judged on how they provide

analytics, innovation and technology to drive that experience

Source: HfS Research 2014

2014 State of Outsourcing Study, conducted with support from KPMG. (Sample 312 Enterprises)

10%

14%

9%

11%

12%

37%

22%

28%

18%

27%

22%

29%

33%

47%

48%

48%

25%

45%

39%

51%

44%

50%

40%

33%

30%

28%

32%

25%

24%

23%

24%

24%

21%

20%

20%

13%

13%

9%

13%

10%

10%

7%

5%

6%

0% 25% 50% 75% 100%

Better cloud-based delivery of services

Improved analytics for revenue growth

Access to new technologies

Access to strategic talent

Improved analytics to improve operations

Meet compliance requirements

Better transformed processes

Greater flexibility to scale operations

Better automated processes

Significantly lower operating costs (25%+)

Better standardized processes

Likely to fire provider if not achieved Important, but not critical Somewhat important Not important

To

day’s

tab

le-s

tak

es:

“C

han

gin

g h

ow

we

do

”

To

mo

rro

w’s

dig

ital

va

lue

:

“M

ore

sa

vvy a

nd

cre

ati

ve

”


However, there is real potential to reorient operations talent to

be effective in the Digital era and enhance the client experience

Source: HfS Research 2014Sample: 115 Enterprise Buyers

37%

38%

31%

29%

27%

29%

25%

18%

54%

48%

56%

60%

57%

52%

61%

65%

10%

14%

14%

11%

16%

20%

14%

17%

Convincing leadership team of the value of Digital Technologies

Transacting Digitally-oriented business processes

Implementing Digital tools and applications

Developing and empowering talent with analytical skills

Developing a Digital roadmap that aligns to business needs

Providing scale and flexibility to support a global Digital initiative

Implementing structured, effective change management programs

Developing and empowering talent with creative-thinking capabilities

VeryCapable

SomewhatCapable

Not CapableAt All

With regards to Digital Transformation, how effective are your current Shared Services/GBS/Outsourcing Governance teams in the following areas?


So what will drive hyper growth for BPM going forward

Some of the things which will drive hyper growth include:

Realizing that it’s not just about back office processes but the end customer experience that is influenced by the combination of processes and technology

That the skills and capabilities developed in CRM and other front office processes across industries are important are transferable to a new digital and more client focused era

That BPM service providers need to be investing in proprietary and third party technologies and skills more than ever before to build these new experiences and this has to happen across clients rather than just client by client investments.