The impact of technology on cost in BPO
Part 1
White paper
SAP AG discusses the impact of technology on Cost in Business Process Outsourcing.
This white paper is the first in a series of SAP white papers, which examines the cost structure associated with Business Process Outsourcing and shows that a diligent assessment needs to address several cost components that are not included in the provider’s total contract value (TCV), and are often overlooked by buyers.
Companies considering BPO as a strategic option should carefully consider the complete cost picture before embarking on a journey.
Many different factors contribute to the cost of a business process outsourcing (BPO) engagement. Among them, Information Technology, especially software is a key cost determinant that is often underestimated.
Technology drives the BPO cost structure in three ways: it enables economies of scale, supports sustainable process optimization, and makes labor arbitrage possible by connection and controlling remote location workflows.
With the right software, organizations can balance their needs for personalization and standardization of outsourced processes by creating the capacity to design process and IT implementation jointly.
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