BPO Trends

Filed in archive Opinions & Insights on January 30, 2010

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In a recent article published on the Shared Services and Outsourcing Network, Susir Kumar and Suresh Ramani of Intelenet were asked about the trends that they are seeing in the BPO industry.

Mssrs. Kumar and Ramani reported that they were seeking a number of significant changes in both the pace and manner of deal structure during the economic difficulties of 2009. These include a greater focus on near-term savings, more aggressive price negotiations, more "buy-outs" of entire departments and they are being asked to bear the risk of implementation and redundancy costs more frequently.

On the other hand, they have reported that this new pressure on price has provided an opportunity to better control the way work is done, as they have had some traction in convincing clients that the client focus should be on outcome, not process. Given the economic stresses, this makes sense, although one must question whether there will be a greater loss of relevant institutional knowledge in client companies.

Like any stress, the recession of 2008-09 has altered the way business is being conducted. The long term ramifications remain to be seen - as do the long term financial savings.