Globalization and increasingly intense competition have forced companies to focus on their core competencies. Business functions are outsourced but still remain an integral part of the way firms serve their end customers. This trend has accelerated during the last 20 years. It will continue to accelerate at an even faster pace in the future. And this has momentous consequences for business process outsourcing (BPO) companies.
BPO companies’ ability to function seamlessly with their customer organizations is a key success factor that will lead to agility, efficiency, and long-term relationships. Pressure for increased efficiency and transparency will increase with intensified global competition.
The first wave of outsourcing saw labor-intensive administrative tasks outsourced to low-cost countries. In the second wave of outsourcing, function-based business transactions will be outsourced. These transactions will be measured in real time against service level agreements, and fulfillment of these agreements will determine the charges that can be made and market share retained. To compete in this fierce marketplace, providing low-cost labor will not suffice.
eBuilder’s Cloud Processes for the value network open new opportunities for BPOs to create efficiency and measurable business value by leveraging our automated end-to-end Cloud Processes. They provide the relevant supervision and deviation-handling services to ensure optimal usage of a customer’s assets and other’s assets throughout the network of collaborating business partners, the value network. Our Cloud Processes guarantee full compliance with the customer’s business processes and enable a BPO company to handle multiple customers in a generic and cost effective way.
eBuilder’s Cloud Processes open a multitude of areas for outsourced services in shared service centers for travel management, order fulfillment, after sales optimization, transport management, procurement, etc.
eBuilder’s Cloud Processes offer the following business improvements:
IT ImprovementsLower Costs for IT operations
Most IT organizations have invested heavily in building an enterprise-wide IT infrastructure and ERP functionality. The focus has been on technical implementation, carried out by the business’s own IT organization or outsourced to IT consultants.
The historical trend has been to try to reuse more and more of existing investments fand resources and to limit the company’s own investment to what is unique within the company to create competitiveness. This can be seen in the evolution from mainframes to client servers, to the PC, to the browser; and from in-house developed code to standard applications. So far, most projects show a limited ability to leverage external assets and investments. This results in long lead times for implementation, unpredictably high costs, and a focus on cost reduction. In most cases, this results in the IT organization lagging behind in projects that add immediate business value and instead being forced to focus on reducing costs in managing the infrastructure.
Cloud Processes for the Value Network give the IT organization an opportunity to implement a strategy for seamlessly integrating all external business parties (the Value Network), a strategy that complements the existing ERP and IT infrastructure investment while extending the enterprise-wide business processes into the Value Network. In the short term, this lowers IT costs and enhances the value of existing investments because the Cloud Processes generate a clear and visible business value within a short period of time.
The Cloud Process implementation is completely different from traditional implementation. For a Community Edition Cloud Process, the implementation process consists of two main activities: Connect to Cloud and operation. The Connect to Cloud project consists of three parts: configuration of the customer-unique business rules, integration of the relevant internal systems, and the addition of unique business partners that are not already connected in eBuilder’s existing Business Process Network. This usually takes less than 15 weeks. Then the operation of the best- practice Cloud Process starts. The payment for the operation is done on a transactional basis. ROI has been achieved in less than 6 months for the majority of all the projects eBuilder has implemented.
The key to this favorable ROI is the degree of reuse. eBuilder Cloud Processes for the Value Network reuse all the 10 main resources of the Cloud Process implemented in our Accelerator SOA technology environment.They also reuse the seamless integration of the 10 different areas and the supervision and control services that ensure availability, quality in the information content (information entropy), and technical functionality. Because many customers share the cost of developing and maintaining this generic platform, the cost to the individual user is dramatically lower than the cost of implementing such a platform on an individual basis.
eBuilder’s Cloud paradigm enables a whole new way of using IT, where IT becomes the business, and computers execute the basic administration tasks that previously were based on human interaction. It also enables the IT organization to leverage joint infrastructure to address the challenges associated with creating efficiency in the Value Network and to participate in the business development.
The BPO Company that serves many different customers with onfe or more outsourced business processes cannot justify starting a separate project for each customer to be implemented, run, and maintained during the duration of the contract. Furthermore, the customer will use multiple outsourcing companies for different processes and will encounter an impossible situation in maintaining and developing these interfaces and business process integrations. In addition, the customer will be willing to pay only for the service provided or asset used, rather than the entire IT project. This fact will create poor profitability leading ultimately to a non sustainable business for many BPO companies.
eBuilder’s best-practice Cloud Processes open up a new opportunity for BPO companies to focus on the value added services provided and to leverage the many assets that are already available, such as supplier networks, logistic centers, transport capabilities, financial transaction reach, etc.