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Why is Business Transformation important to a BPO company?

We hear the words "Business Transformation", "Moving Up the Value Chain", etc in IT/ITES circles, especially in India.

Are those just marketing spin messages or the latest buzzwords that need to be mindlessly repeated, just because the other guy is using them in their pitches and literature?

Business Transformation and Moving Up The Value Chain will prove to be true saviors in the IT/ITES space when competition based on price creeps up from other countries like Vietnam and China! They don't have to be buzzwords!

Business Transformation can happen at the smallest level where a single metric like Average Handle Time (AHT) is improved to the highest level where an entire business process can be redesigned and rolled out, cutting waste in human effort, movement of unncessary information and paper and most important of all, Time!

Low costs of labor have a nasty habit of becoming no longer low costs over a period of time. Hard disk drive manufacturing migrated from the US because of labor costs to Singapore. Then from there it migrated to Malaysia. Then it was Indonesia and Thailand. Now, China, the behemoth swallowed them all and absorbed a lot of the manufacturing. Each country became too expensive over a period of time.

If Indian ITES suppliers think that this may not happen to them , they need to think again!

Many voice based processes have moved back to the home country once they found that that *particular* process was not suitable for offshoring.

Now the emphasis is all on backoffice processes that do not involve customer contact. If looking at a scanned image and typing english words into an application is the process, it does not involve a great language skill differentiation. China can just as easily do this and for a lot less money!

This is where Business Transformation can truly add value and prevent these processes from following the low cost labor silk route!

More thoughts about how to actually do it in coming blog entries!

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Tags: Business, Continuous, Improvement, Process, Transformation

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