Global Business Process Outsourcing Services Category - Procurement Market Intelligence Report

  • Published: Feb 2019
  • Pages: 108
  • SKU: IRCMSTR10987-1
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Key findings: Business process outsourcing services

 

Key insights on the critical cost drivers and procurement best practices offered in this business process outsourcing services market intelligence report will help the category managers address the significant procurement challenges faced in the current market. The report also analyzes the US supply market and market entry barriers to help buyers and suppliers achieve cost-savings.

 

Challenges faced in the manufacturing sector which include lack of technical expertise, supply chain complexities, and customer attrition are driving the buyers to outsource most of the related functions. This is creating significant demand in the business process outsourcing (BPO) services market. To increase focus on their core area, the healthcare sector is outsourcing activities such as medical billing and collection, medical coding services, payment posting, revenue cycle management services, and medical claims processing services. This is accelerating the category spend momentum to a large extent. However, high attrition rate and inter-boundary regulations are posing as some of the critical procurement challenges faced in the current BPO services market.

To know more about the year-over-year spend growth rate, download a free sample report.

Insights delivered

 

This business process outsourcing services market intelligence report offers detailed information on the pricing strategies to help the buyers procure from the top BPO companies at cost-effective rates. It covers the sustainability practices and the risk management/mitigation strategies that can help in identifying and addressing the procurement challenges faced in the BPO services market. Our reports offer a comprehensive overview of the global and regional supply market, cost drivers, category risks, and supplier ecosystem.

Our portfolio of reports for the professional services help buyers understand:

  • Global and regional spend potential for business process outsourcing services for the period of 2017-2022
  • Risk management and sustainability strategies
  • Incumbent supplier evaluation metrics
  • Pricing outlook and factors influencing the procurement process

Analyze the global category spend for business process outsourcing services

 

BFSI, retail, and the IT and telecommunication are some of the significant end-user sectors who are accounting for an accelerating spend growth momentum in the BPO services market. Focus on reducing OPEX is driving the retail sector to outsource activities such as sales support, real-time sales guidance, order inquiry and processing, and compliant management to the leading BPO companies. Currently, the retail sector claims the major part of the market share on a global basis.

For more information on the exact spend growth rate and yearly category spend, download a free sample.

This procurement research report offers coverage of:

  • Regional spend dynamism and factors impacting costs
  • The total cost of ownership and cost-saving opportunities
  • Supply chain margins and pricing models

 

Optimize category spend for business process outsourcing services

 

Procuring skilled expertise within a minimal cost can be a challenge but not an impossible task in the BPO services market. Buyers are advised to adopt the best cost country sourcing (BCCS) strategy based on the following parameters that have been proven to facilitate significant cost-savings on the long-run:

  • Labor costs
  • Infrastructure
  • Technology cost
  • Supply market competition
  • Tax rates
  • Availability of skilled workforce
  • Cybersecurity measures
  • Attrition rate

This business process outsourcing services market intelligence report also offers coverage of:

  • Key category management objectives
  • Supplier cost breakup
  • Category pricing dynamics

 

Assess category spend for the US region

 

Growing demand from the healthcare and airline industries in the US will increase the scopes for the vertical BPO companies. However, the horizontal BPO services market is predicted to take a hit because of the fierce competition exerted by the global counterparts and an increasing preference towards the vertical BPOs as they offer bundled sourcing opportunities.

Additional information offered in this procurement research report will help buyers analyze:

  • Margins of suppliers in the US
  • Category spend in the US
  • Price outlook and forecasts until 2023

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Build strategies for effective supplier selection

 

Because a high attrition rate is posing as a significant procurement challenge for buyers, it is quintessential to select a supplier based on their agent turnover rate. A high turnover rate can increase OPEX which will result in adding to the buyers procurement spend. The turnover rate can be calculated as the number of agent separations during the time period/ average number of agents employed during the time X 100.

This procurement research report identifies the major costs incurred by suppliers and provides additional information on:

  • Competitiveness index for suppliers
  • Market favorability index for suppliers
  • Supplier and buyer KPIs

 

Devise effective category management strategies for business process outsourcing services

 

Ensuring optimal resource utilization while achieving cost-savings is crucial for buyers. Utilizing Lean Six Sigma methodology enables the BPO companies to maintain a high occupancy rate, thus provide services with optimum resource utilization. This will allow service providers to avoid additional costs that arise during project overruns. Adoption of Lean Six Sigma will also enable service providers to increase the number of FCRs and TAT along with reducing customer churn for buyers.

Key insights offered in this market intelligence report will help the buyers identify:

  • Risk mitigation strategies
  • Cost-saving opportunities: Supply-side levers
  • Supplier relationship management strategies

 

Determine the spend dynamics for key geographies

 

APAC is expected to account for a significant increase in the category spend momentum. Prevalence of feasible business policies and better technological infrastructure that can readily adopt latest technologies are attracting outsourcing requests from significant industries across the globe. Low wage and lower office rent in most of the APAC countries allow them the liberty to offer BPO services at reduced rates. However, the shortage of skilled workforce will impede the category growth in MEA countries when compared to the global growth of the BPO services market.

Key geographies analyzed in this procurement research report include the following:

  • APAC
  • MEA
  • Europe
  • North America
  • South America

Information on the top BPO companies and significant procurement challenges faced while procuring business process outsourcing services is offered in this market intelligence report. Download a free sample to access the reports complete scope of coverage.

Key Features of Report

Supply Market Insights
Procurement Best Practices
Cost Saving Opportunities
Pricing Models
Negotiation Strategies
Category Risk Analysis
Key Supplier Analysis
Supplier Capability Matrix
 

 

Business Process Outsourcing (BPO) Services - Category Spend Analysis

According to SpendEdge analysts, one of the key growth contributors for global BPO services supply market is the increasing focus of businesses on developing customer-centric engagement models and outsourcing non-core functions such as customer requests, order processing, technical support, and telemarketing.

 

Business Process Outsourcing Services – Procurement Best Practices

Buyers must engage with suppliers that can provide customized support service packages to different non-core business functions. Buyers must partner with suppliers that offer support services for various industries and ensure that the necessary services are available and negotiate based on the level of customization.

 

Business Process Outsourcing Services - Procurement Challenges

Based on the analysis in this report, a major procurement pain point experienced by the buyers is the difficulty in integrating services from various suppliers. SpendEdge’s procurement specialists predict that the buyers must engage with suppliers that have standard service level agreements, have a global delivery network, and are capable of providing integrated services across geographies to counter this specific procurement pain point

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PART 01: Executive Summary

PART 02: Market Insights

  • Global category spend
  • Category spend growth
  • Spend segmentation by region
  • Regional spend dynamics
  • Regional influence on global spend
  • Regional spend opportunity for suppliers

PART 03: Category Pricing Insights

  • Pricing outlook
  • Supplier cost structure
  • Outlook for input costs
  • Total cost of ownership analysis
  • Overview of pricing models
  • Comparison of pricing models
  • Supply chain margins
  • Cost drivers impacting pricing
  • Volume drivers impacting pricing

PART 04: Cost-Saving Opportunities

  • Supplier-side levers
  • Buyer-side levers
  • Quantifying cost-saving opportunities
  • Quantifying cost savings by negotiation strategies

PART 05: Best Practices

  • Innovation and success stories
  • Procurement excellence best practices
  • Procurement best practices
  • Sustainability practices

PART 06: Category Ecosystem

  • Market favorability index for suppliers
  • Competitiveness index for suppliers
  • Buyer power
  • Supplier power
  • Threat of new entrants
  • Threat of substitutes
  • Buyer ecosystem
  • Supplier ecosystem

PART 07: Category Management Strategy

  • Category management objectives
  • Supplier and buyer KPIs
  • Outsourcing category management activities
  • Risk management

PART 08: Category Management Enablers

  • Procurement organization
  • Category enablers

PART 09: Suppliers Selection

  • RFx essentials
  • Supplier selection criteria
  • Service Level Agreement
  • Incumbent supplier evaluation metrics

PART 10: Suppliers Under Coverage

  • Overview
  • Supplier positioning
  • Profile: Accenture
  • Profile: Infosys
  • Profile: IBM
  • Profile: DXC Technology
  • Profile: Capgemini
  • Profile: Genpact

PART 11: US Market Insights

  • Category spend in the US
  • Price outlook
  • Supplier cost structure in the US
  • Margins of suppliers in the US
  • Category cost drivers
  • Category volume drivers
  • Overview of best practices in the US
  • Procurement best practices in the US
  • US supply market overview
  • Supplier positioning for the US
  • Regional category risks

PART 12: Category Definition

  • Category hierarchy
  • Category scope
  • Category map

PART 13: Appendix

  • List of abbreviations
  • Key notes
  • Global category spend (2018-2023)
  • Category spend growth (2018-2023)
  • Regional spend dynamics
  • Regional spend dynamics
  • Comparison of category maturity across regions
  • Regional spend opportunity for suppliers (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Input cost dynamics
  • Total cost of ownership model
  • Benefit comparison of pricing models
  • Pricing models – comparison matrix
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Cost-saving opportunities: Supply-side levers
  • Cost-saving opportunities: Demand-side levers
  • Cost-saving opportunity matrix
  • Negotiation grid
  • Innovation and success stories
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management metrics
  • Strategic sourcing and category management metrics
  • Technology-facilitated procurement metrics
  • Procurement best practices dashboard
  • Sustainability practices: Impact on the category
  • Sustainability best practices
  • Market environment score
  • Market competitiveness score
  • Buyer power
  • Supplier power
  • Ease of market entry score
  • Ease of substitution score
  • Buyer ecosystem: Outlook
  • Supplier ecosystem: Outlook
  • Ecosystem disruption threats
  • Key category management objectives
  • Supplier KPI dashboard: Importance for the category
  • Buyer KPI dashboard: Importance for the category
  • Category management enablers
  • Risk management matrix
  • Category enablers: Procurement model
  • Category enablers: Technology
  • RFx questions
  • Phase I RFI considerations
  • SLA terms
  • Supplier performance benchmarking criteria
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • Accenture – Key information dashboard
  • Infosys – Key information dashboard
  • IBM – Key information dashboard
  • DXC Technology – Key information dashboard
  • Capgemini – Key information dashboard
  • Genpact – Key information dashboard
  • US category spend (2018-2023)
  • Category pricing dynamics
  • Supplier cost breakup
  • Supplier margin analysis
  • Margin analysis across supply chain
  • Cost drivers
  • Volume drivers
  • Procurement excellence summary: Impact on the category
  • Supplier relationship management
  • Strategic sourcing and category management
  • Technology-facilitated procurement
  • Procurement best practices dashboard
  • Supplier operational capability matrix
  • Supplier positioning matrix
  • Risk management matrix
  • Category definition
  • Category nuances
  • Importance of category relative to other categories

Research Framework

SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary research

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary research

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings

DATA ANALYSIS

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