reset bpo for better business outcomes

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©2011, Cognizant | All rights reserved. The information contained herein is subject to change without notice. RESET BPO Better Business Outcomes Nigel Edwards | 10 th May 2011 Amsterdam

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Is Shared Services / BPO at a tipping point?

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Page 1: Reset BPO for Better Business Outcomes

©2011, Cognizant | All rights reserved. The information contained herein is subject to change without notice.

RESET BPO Better Business Outcomes

Nigel Edwards | 10th May 2011

Amsterdam

Page 2: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions

CONTROL & COMPLIANCE

STANDARDISATION

CONSOLIDATION OPTIMISATION

2

Conventional BPO

Page 3: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions

BUSINESS CASE SAVINGS

INCREASING EFFECTIVENESS & EFFICIENCY

INCREASING CUSTOMER SATISFACTION

REFOCUSING ON CORE BUSINESS

3

Source: AT Kearney

Conventional BPO

Page 4: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions

“ We have had some great successes, but what now? ”

4

“ How can I deliver further value? ”

“ How can I deliver sustainable careers for my staff? ”

“ How can I manage both rapid growth and contraction? ”

“ It‟s just gone a bit flat…”

?

Page 5: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 5

BPO outsourcing services

Enabling tools & technologies

Core BPO processing system(s)

Limited role of technology where supplier plugs into buyer‟s existing systems to deliver services

Supplier-provided tools that serve as “add-ons” around the periphery of the existing systems to address specific gaps

Tie-and-run Technology augmentation

Platform-based / Cloud Offerings

Pre-integrated applications and pre-built processes, owned by supplier, with pricing built into the BPO contract

Increasing levels of technology integration in BPO

Χ

Conventional model

IT / BPO

Χ Χ

Cognizant Investments

?

Page 6: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 6

?

Page 7: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 7

VIRTUALISATION

IN

NO

VA

TIO

N

EFFICIENCY

EFFEC

TIV

EN

ES

S

The ‘Old Potential’ Performance Threshold

The ‘New Potential’ Performance Threshold

?

Page 8: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions

BUSINESS OUTCOME

TRANSPARENCY

INNOVATION

ENTERPRISE LED

COST REDUCTION

FLEXIBILITY

INSPIRATION

CONTRACTUAL

8

IT-B

PO

Page 9: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 9

CONTRIBUTING TO TOP LINE GROWTH

REDUCING TIME TO MARKET

REALLOCATING CAPITAL

OPTIMISING CASH FLOW

SUSTAINED VALUE CREATION

9

Reset BPO

Page 10: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 10

“We achieved over 40% savings

through immediate outsourcing. We

introduced productivity gains through

centralization, better workflow and call

queuing that has provided an additional

10% savings. Some of these savings

were re-directed to fund direct-to-

consumer video and game initiatives.”

- Director Support Services, Video

Retailer

Reset BPO

Page 11: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions

COMMERCIAL RIGOUR

COST VISIBILITY

ASSET MONETISATION

CHANGE ENABLEMENT

11

Reset BPO

Page 12: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 12

“A huge amount has been delivered

in a very short space of time –

new processes, new structures,

new ways of working and a new

partnership with Cognizant which

is very impressive.”

- VP Clinical Development,

Global Pharma

Reset BPO

Page 13: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 13

CLOUD COMPUTING

BPaaS

BUSINESS PROCESS MANAGEMENT

LEAN / SIX SIGMA

GLOBAL WORKFORCE MANAGEMENT

PREDICTIVE MODELING

TECHNOLOGY PROCESS

MASTERY

GLOBAL

DELIVERY

PEOPLE

BUSINESS

ANALYTICS

Reset BPO

Page 14: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 14

“I work with many vendors each of them offering a set of tools and

applications to help support my business. When I step back and look

at these various offerings, I can safely say that Cognizant is

delivering the best combination of functionality, stability,

performance, and usability. Cognizant built the Tracer, Update

Management Tool, Escalation Tracker, and Learning Management

System at their own expense because they observed a need

and invested to address the gap. The results in terms of improved

quality, reporting, agent performance, and operational flexibility are

obvious. It‟s this “go above & beyond” attitude that sets Cognizant

apart and improves my business day after day.”

- Senior Executive Business Services, Global Telco

Reset BPO

Page 15: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 15

Conventional BPO

Reset BPO

Above and Beyond

BPO / ITO ALIGNMENT – BOTH PARTIES

FIXING THE „HERE AND NOW‟ WHILE

„SHAPING THE FUTURE‟

AGNOSTIC IN APPROACH

ENGAGED AND EMPOWERED CULTURE

Time

Reset BPO

Page 16: Reset BPO for Better Business Outcomes

| ©2011, Cognizant Technology Solutions 16

“If Cognizant was a man, I would marry him right

away” – Female CXO, US Financial Services Company

$4.59 Billion in revenues

in 2010

Revenues have increased

222% since 2006

Over 100,000

employees

712 global customers - 46 of

The Fortune 100

Fastest growing firm in the

industry

Cognizant Facts