World-class companies have continued to leverage technology and business best practices to widen the gap between their performance and that of their peers. In recent years, world-class companies have shifted their focus to business process outsourcing (BPO) to drive higher performance. While business process outsourcing can deliver significant benefits in efficiency and cost reduction, there can also be challenges and pitfalls associated with outsourcing. For enterprises considering outsourcing, partnering with the right outsourcing consulting firm can help to ensure that they yield the desired benefits.
Hackett outsourcing consultants believe that BPO is the most compelling event in the SG&A world for the next 5-10 years. The impact of business process outsourcing is of such magnitude that it will challenge the conventional wisdoms that have guided the way service delivery models for SG&A have been architected over the past two decades. Ensuring the correct mix of structure, people, performance and technology will result in the optimum balance of an effective and efficient global organisation.
Offshoring and outsourcing alone are not "silver bullets." Offshoring in combination with other business transformation initiatives will drive performance optimization. Since the late 1990s, organizations in North America and Europe expanded the business process outsourcing to most of their back office functions, like IT infrastructure and applications development, human resources, finance and accounting. Most of these transactions represented a "lift and shift" business process outsourcing strategy whereby current processes were moved from a high costs to a low costs geography but little or no business transformation either preceded or followed the process transition. As expected, few of these transactions enabled company to achieve world-class performance. Hackett believes the next wave of BPO transactions will encompass both "transform and shift" and "shift and transform" business process outsourcing strategies. This expected change in sourcing strategy will have a profound impact on how strategic sourcing strategies are formulated and executed.
Hackett uses its market leading intellectual property on world-class performance and business best practices and its deep knowledge of the BPO service provider capabilities to assist clients in selecting and contracting with the optimal BPO service provider that can enable the client to implement its process transformation roadmap via a "shift and transform" sourcing strategy. Not only is more value derived from the project, but the actual project timetable can be significantly accelerated, reducing costs and mitigating project risks for all stakeholders.
Hackett outsourcing consulting advisors offer the optimum combination of in-depth functional, transformation and sourcing expertise. Our approach is to treat business process outsourcers as client partners and to work collaboratively with them, to drive innovative solutions through targeted workshops and to look at their transformation skills subsequent to replicating business processes in an outsourced environment. By focusing on successfully integrating retained and outsourced functions, we ensure that end-to-end processes are integrated and perform at world-class levels.
Hackett advises clients on BPO and globalization across all of their back-office functions, from finance outsourcing, HR outsourcing to IT outsourcing and Procurement outsourcing. We assist clients in managing the selection of BPO service providers, leading the process for provider selection, contracting and governance, as well as transitioning to the new delivery model. We also design shared service center delivery models and manage site selection, migration, governance and the change management needed for a smooth transition.
Drawing on years of experience working with major corporations from around the world, The Hackett Group's outsourcing consulting services can guide you through all stages of a business process outsourcing initiative, including the selection of an outsourcing provider, the negotiation of a service contract with the provider, the creation of a governance structure, and the transition to the newly outsourced service. The Hackett Group has deep outsourcing expertise across all business functions including finance outsourcing, HR outsourcing, procurement outsourcing, and IT outsourcing.
See how Hackett differs from the traditional sourcing provider.