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Business Process Services in the Retail Sector: 2016

Market Analysis

by John Willmott

published on Oct 20, 2016

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Report Overview:

NelsonHall’s “Business Process Services in the Retail Sector: 2016” 63-page report is based on global interviewing of senior executives across the retail sector in four geographies: U.S., U.K., Continental Europe, and Asia Pacific.

In particular, the report analyzes the principal business issues faced by retail firms over the period 2016-2018, the operational initiatives planned in response to these issues, and the suitability of their current business processes to meet future business needs.

It then addresses the satisfaction of retail executives with current business process services (BPS or BPO), and their attitudes towards emerging models of BPS service delivery, together with their levels of anticipated BPS spend growth and purchasing intentions by service line.

Who is this Report for:

NelsonHall’s “Business Process Services in the Retail  Sector: 2016” report is a comprehensive market assessment report designed for: 

  • Sourcing managers investigating sourcing developments within the retail sector 
  • Vendor marketing, sales and business managers developing strategies to target business process services (BPS) opportunities within the retail sector 
  • Financial analysts and investors specializing in the IT services and BPS sector 

Scope of this Report:

The report is based on interviews with executives in the retail sector in the U.S., U.K., Continental Europe, and Asia Pacific. 

The report analyzes the worldwide market for business process services (BPS or BPS) within the retail sector and addresses the following questions:

  • What are the principal business issues faced by organizations in the retail sector? 
  • What operational initiatives and enhancements are planned by organizations in the retail sector? 
  • How suitable are their current processes perceived to be to support their future business requirements by executives in the retail sector? 
  • How satisfied are companies in the retail sector with the current delivery of BPS services? 
  • How would executives in the retail sector like to see BPS services improved?
  • What shifts in sourcing policy are expected by executives in the retail sector over the next three years?
  • Which approaches to BPS are favored by executives in the retail sector?
  • How do companies in the retail sector expect their spend on BPS services to change over the next three years?
  • Which processes will companies in the retail sector seriously evaluate for BPS/BPS in the near future?

 

 

Key Findings & Highlights:

Retail firms are in the vanguard of feeling the pressure from online retailers and new digital disruptors and this pressure is not about to go away. Indeed, retail firms, especially those in the U.K. and Continental Europe, typically have a high expectation that the rate of change in their industry is accelerating, though those in the U.S., perhaps because they are already under considerable pressure, largely expect the current rate of change to remain constant.  

Retail firms have typically made major investments in their e-commerce capability. However, they need to continue to enhance this capability and increasingly accompany automation in the front-office with greater automation and visibility throughout the supply chain. 

Nonetheless, retail firms place a higher emphasis on run-the-business market initiatives than on change-the-business market initiatives, with 45% showing a high level of intent to adopt run-the-business operations initiatives compared to 23% for change-the-business initiatives. 

The key “run-the-business” operational initiatives to be undertaken in the next 12-months by retail firms have three principal themes namely: reducing their administrative and logistics costs (principally through enhanced automation), enhancing their e-commerce capability and customer experience, and improving their reporting & use of analytics. 

Critically, a number of transactional areas are perceived to be inadequate to support the business over the next three years.  

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