I was sitting through a presentation from a KPO doing some very interesting things in the areas of Market Research and Intellectual Property Research. In the process of executing these services, this company has come up with very useful online, web-based tools that make the creation and dissemination of such research easier and painless. Very useful technology indeed!
However, the CEO got the very appropriate feedback that when they mix their KPO service offerings with offering the technology also for a price, they are confusing their prospects!
I have seen this happen with many BPO and KPO service providers, especially in India. It's not because the technology is unimpressive or unuseful but when you have a very very compelling value proposition in the form of cost savings when these services are executed with the same quality as when done elsewhere, why confuse the issues?
The person providing the feedback to this CEO nailed it on the head when she said "Initially don't confuse the prospects with you value proposition which is mainly, very compelling cost savings. You can always do it when you are having your second or third meeting or when you are preparing a proposal in conjunction with the prospect".
Even with rising costs of providing top of the line BPO and KPO services out of India, cost savings are still there 20 percent at a minimum, quite often a lot more!
Technology value-adds are more like icing on the cake. Not confusing the cake with the icing also helps the prospect make the same distinctions and help move the close that much faster!