Platforms: The new stop for BPO wagons

BANGALORE, INDIA: Platforms would be the next big thing in BPOs, so drive your R&D and attention there. As the BPO industry, the buyers and service providers in it emerge changed post the global meltdown, platforms would replace internal systems, argues Stephanie Moore, a former analyst and now chief marketing officer, UST Global. It is an opportunity area for the future we head towards, she says.

“They will help providers make more margins, help realize the true nature of one-to-many models, and also allow to escape constraints of FTE (Full Time Employee) based pricing. While unsophisticated customers still look for FTE-based pricing, sophisticated ones are ready for transaction-based or value-based pricing.”

She suggested that BPO providers should seriously consider R&D investments in platforms.

Platforms would also benefit buyers by better reduction in costs as well as in escaping the cycle of the ongoing investments in application platforms (read ERP). “It will also help them gain access to best pricing.”

The same view is being endorsed by Amitabh Chaudhry, CEO, Infosys BPO. He stressed that the service providers would now have to focus on developing leaner operating models in all three areas of employee, technology and space. “And also develop platforms which will signify shift from fixed to variable cost model. We see a greater convergence of technology and operations with bundled IT, operations, IP and platforms. Subject matter expertise would be equally crucial,” he said.

Moore and Chaudhry were speaking at a session on ‘New rules of client engagement’ at the 11th annual Nasscom BPO Strategy Summit 2009 here.