BPS: The time to start the conversation is now

Conversation

A recent article on Forbes highlights the difficulties of funding multiyear digital journeys today. We see real-life examples with most of our customers and prospects:

  • A retail conglomerate decides to divest some of its brands, and its multi-year investment in e-commerce immediately risks losing economies of scale
  • A power utility opens green plants, and its accounting back office has to start paying taxes and suppliers in unplanned new countries
  • Mergers, acquisitions and divestitures (MA&D) are on the rise across the world, continuously re-shaping firm priorities and impacting on-going investment plans

Sudden changes in scope and strategy can undermine the business case for long-term digital investments before benefits are realized. With technology lowering traditional entry barriers, CIOs and CFOs cannot stand still in the face of competitors. But how can financial resources and commitment from the business be secured at a time when long-term plans are disrupted by the pace of change and ROI is counted in months rather than years?

Well, the good news is that technology itself — the very trigger of such disruption — is also rapidly changing the way IT and business process services are procured. Long-term outsourcing contracts that traditionally took several months to ramp up and then immobilized the operations into years of rigid stabilization are giving way to multiple agile sourcing models.

Head Digital Journey

At DXC Technology, we see several forces that are dramatically reshaping how business process services (BPS) solutions are designed, validated by the business, scaled up or down, and constantly evolving:

  1. The need for lengthy and risky staff transitions decreases as robotic process automation (RPA) and other AI-driven technologies displace the need for labor arbitrage.
  2. Mature business services become standardized and broken into manageable, prepackaged solutions that customers can quickly select, configure and have provisioned.
  3. The traditional pyramid of vendors evolves into ecosystems of mutually dependent partners who use joint go-to-market and balance-of-trade arrangements.
  4. Big-bang transitions and transformations give way to gradual, de-risked partnering models; advisors help quickly identify business opportunities and deploy proof-of-value pilots, whose scope is rapidly extended and scaled up throughout the organization.

By partnering with leading BPS providers, CXOs have a variety of options that deliver immediate results and pave the way for agile scaling-up to meet their business needs. Advisory engagements lead this revolution; from the network of prepackaged solutions, to robot factories, to competency centers provided by an ecosystem of partners, advisory projects ignite the synapses that deliver the solution.

Those that seize the opportunity first will secure competitive advantage and a leading position in their market. The time to start the conversation is now.


Bruno Stefanile is a senior executive of BPS Solutions at DXC Technology. He manages the BPO-dedicated solutioning practice team of about forty senior sales/pre-sales consultants. Bruno also contributes to DXC’s BPS strategic plan and individual client business cases for selected opportunities.

Connect with Bruno on Twitter and LinkedIn.

 

 

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