-- BPO Providers Elevate Outcome-Based Risk Reward - Form Partnerships
with Clients
In 2010, key suppliers will look to develop innovative contracting and
pricing structures which will shift the risk from the buyers to the
supplier. VWA predicts that providers will focus on relationship
management, by working with clients' entire business organization to help
improve the business. Service providers will continue throughout 2010 to
look for ways to mitigate problems and become a partner with customers to
establish a trust relationship, rather than simply being viewed as a
provider. Providers will be working outside the project scope with the
spotlight being centered on forward-thinking preventative measures in order
to eliminate pain points throughout the BPO cycle.
Successful providers will empower their staff to construct relationships
and contracts to deliver increased productivity, transformation and
innovation, thus taking on more risk so decision makers can focus on
optimizing operations and containing costs. Providers will hone their
ability to work together with other suppliers and take on risk for the
integration of third party services. Decision makers will look to shift
more of their sourcing energies from the transaction to the governance
process to optimize their strategic relationships with providers.
-- Comprehensive Innovation: Technology's Role in BPO in 2010
F&A BPO decision makers will increasingly look for their outsourcing
relationships to deliver more than simple cost arbitrage: for example, a
growing number of decision makers now expect their chosen vendor to drive
process improvements, and provide them with access to the latest
technology. Non-disruptive technology augmentation that solves a company's
specific process issue which is negatively impacting the business is the
driver behind decision makers' embracing technology and the resulting
implementation.
VWA predicts that technological innovation will help drive down the pure
cost savings through the labor arbitrage debate by significantly improving
business process efficiency. Combining innovation in technology with
delivery excellence will allow buyers and suppliers alike to focus energies
on what is best for the entire business and create true transformation.
-- End to End BPO Solutions for Both Mid-Size and Large Companies
As the F&A BPO market matures, decision makers are more willing to
outsource end-to-end accounting processes, such as order-to-cash. To date,
the majority of order-to-cash (OTC) outsourcing has been focused on project
based outsourcing two or three functions, such as invoicing, cash
applications, and collections. In 2010, the trend will shift as corporate
decision makers move from simple transactional processes to an outsourcing
business model designed to manage and provide complex O2C strategies across
the enterprise. Decision makers will look for expert solutions designed
and customized to their businesses that don't represent disruptive change
to the existing business. Providers who offer a consultative approach and
perform as a trusted partner will be rewarded with expanded scope and
contract renewals. Providers will need to work in concert with clients,
stay focused on costs, effectively manage working capital and establish a
relationship of trust.
According to VWA, increasing the depth and scope of O2C solutions will give
companies more working capital and improved business processes to realize
the maximum potential of a full-service O2C BPO in 2010. Additionally,
experienced vendors, such as VWA, will incorporate expertise, project
planning and technical automation that address a customer's pain points.
About Vengroff, Williams & Associates, Inc.
Founded in 1963, and with $23 billion dollars under its management,
Vengroff, Williams & Associates is a leading provider of receivables
management business process outsourcing (BPO) solutions for Fortune 1000
companies such as Ford Motor Company, Federal Express, Kodak, Microsoft,
Yamaha and others. To learn more about VWA, please visit www.vwainc.com or
telephone (866) 393-4892.
Contact Information: MEDIA CONTACT: Amy Rosenthal Trier and Company 415.717.2485 amy@triercompany.com