Taking a holistic approach to BPO services enables transformation, outcome-based solutions, and ensures a company will be able to support future business changes. This paper explains the change in mindset and approach that needs to occur in order to yield these results. Companies must move beyond a focus on labor arbitrage and the traditional view that puts technology, business processes, and sourcing into three separate buckets.
The paper explains how a holistic approach enables process and technology optimization. It presents a case study of a global alternative asset manager that benefited significantly from this approach. It explains the activities over 30 months that helped the bank improve its process capability (including 50 sub-processes for over 200 funds), optimize the underlying IT, and reduce costs by 50 percent. Also included is a case study of a U.S. bank’s mortgage business optimization; in this case, the holistic approach resulted in $18 million in savings over three years.
The paper concludes with a discussion on how to develop metrics that measure success in a transformation initiative as well as tips on choosing which processes to transform.