The Enterprise Applications research helps the companies to establish the right business processes and underlying technologies to optimize company operations. The building customer demand to multichannel sales, product development to sourcing and supply chain, financial and human capital management and customer service, this research and advice to help companies plan, justify, implement, and improve employee, partner and customer-facing applications. The key research areas include extended business process optimization, extended enterprise deployments, right-sourcing (insource, outsource, offshore, BPO), and customer information strategies.
We strongly believe business process outsourcing (BPO) services and bpo offshoring represent the next fundamental stage in business automation process, further streamlining business processes and systems using external vendors.
The global firms are becoming geographically dispersed networks of capabilities and resources with bpo services company. For the last four decades, a majority of IT services in global companies efforts have focused on automating and improving the efficiency of individuals and operating units within the "four walls" of an enterprise. Yet, mounting margin pressure for bpo services, bpo applications, business process outsourcing solution, global competition and an increased focus on core business are driving companies like never before to look for new ways to get things done at a lower cost.
The BPO service imperative requires architecting a new relationship infrastructure and set of applications, which are largely underdeveloped today. The scale of change and transformation we are talking about is much bigger than just outsourcing a call center. It encompasses an interdependent web of infrastructure, technology services, multiple application sectors, and marketplaces.
To given the breadth and reach of the BPO solution buildout to come, we are confident that BPO companies will be much larger than any previous business automation cycle and could easily be ten to 20 times the size of the $20 billion combined ERP and CRM markets.
Our BPO services growth thesis has six key building blocks:
The face of nonstop services pressure to cut costs, bpo companies are now ready to outsource business processes and provide business process outsourcing solution and applications outside their "four walls." For the last four decades, virtually all IT advancements have focused on automating business processes internal to the enterprise (e.g., general ledger, manufacturing, HR). With this IT infrastructure in place, businesses are now looking to drive more ROI out of this investment by further digitizing their business processes and, at the same time, tightly couple core business processes with outsourcing partners.
The driver of this next stage in digitizing processes is not technology, but changes in competition and how businesses operate and conduct business are bpo outsourcing. Increasing competition and shortened product lifecycles are forcing bpo companies to decouple their business processes, bpo outsourcing services and recouple them with outside partners to improve efficiency and lower costs and time to market.
To despite the huge investments in enterprise applications, very little of the infrastructure and applications needed to automate BPO services, business processes and relationships outside the enterprise are in place today. The BPO buildout ahead represents an interdependent web and portals - each piece of this technology puzzle drives and depends on the others for success and represents a powerful, multiyear investment opportunity, in our view.
At the architecture level, The BPO is fundamentally about web application and bpo service software integrated across business partners and coordinated through well-defined interfaces. The BPO relationships are essentially integrated Web Services modules that enable the automation of customer and supplier relationships over the Internet.
Currently, we are in the early stages of a BPO services life cycle that is unfolding in three interlocking steps: 1) IT project-based outsourcing, 2) task-based outsourcing, such as call center; and 3) business process outsourcing, such as HR outsourcing.
We believe that BPO is a multiyear investment cycle that will produce the step functions of business growth and value creation over the next few years with bpo applications for outsourcing. Each of the bpo companies has a significant opportunity to become a franchise name in this next stage of business automation and bpo outsourcing services.