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Infosys: 100 Days In
Nov 18, 2014, by Rachael StormonthIn September we wrote an event note following Infosys European analyst meet on the principal message in the keynote address by new CEO Dr. Sikka “Renew the core business, innovate into new businesses” (see here). Earlier this month we attended Infosys’ U.S. analyst event and its Confluence customer meet in Orlando. Dr. Sikka was about 100 days into his role, and we were lookin[...]
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HP BPO: Reenergized in Europe, Increasingly Bullish
Nov 16, 2014, by Rachael StormonthNelsonHall recently attended an HP Enterprise Services (HP ES) analyst and adviser event in London focused on its European BPO business - on what was the first working day of its FY 2015. The tone was very upbeat: FY 2014 was a good year, with HP ES winning 11 out of the 12 BPO deals for which it bid, for an overall TCV of $1bn+ And management described its pipeline for FY 15 as “[...]
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Disruptive Forces and Their Impact on BPO: Part 7 - High Velocity BPO - What the Client Always Wanted
Nov 13, 2014, by John WillmottThis is the final in a series of short blogs that look at various disruptive forces and their impact on BPO. The impact of all these disruptive factors is that BPO is now changing into something that the client has always wanted namely “High Velocity BPO”. In its early days, BPO was a linear and lengthy process with knowledge transfer followed by labor arbitrage, followed by process[...]
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Disruptive Forces and Their Impact on BPO: Part 6 - The Internet of Things: Is this a New Beginning for Industry-Specific BPO?
Nov 12, 2014, by John WillmottIn our discussion, we’ve missed out lots of fashionable disruptors like mobile and cloud and these are indeed important elements within BPO. However, let’s be more futuristic still and consider the impact of the Internet of Things. Some examples of current deployment of the Internet of Things are as follows Sector Examples [...]
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Disruptive Forces and Their Impact on BPO: Part 5 - Will Software Destroy the BPO Industry? Or Will BPO Abandon the Software Industry in Favor of Platform Components?
Nov 11, 2014, by John WillmottBPO has always depended on partnerships with third-party software providers to provide supplementary platforms around client core systems to provide specialist functionality in areas like procurement, collections, & reconciliation handling. However, there is a danger that this can lead to a Heath Robinson (or Rube Goldberg) combination of applications, involving expensive software or SaaS[...]
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Disruptive Forces and Their Impact on BPO: Part 4 - Digital Renews Opportunities in Customer Management Services
Nov 10, 2014, by John WillmottThere has always been a big divide between those suppliers that are comfortable handling voice and those suppliers that were comfortable handling data with very few comfortable with both. However, the impact of digital is such that it increases the need for voice and data convergence. A common misconception in customer service is that the number of transactions is going down. It isn’t, it[...]
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Disruptive Forces and Their Impact on BPO: Part 3 - Labor arbitrage is dead – long live labor arbitrage
Nov 09, 2014, by John WillmottThere’s another disruptive force in BPO that no-one likes to talk about. It’s called labor arbitrage. Everyone is keeping a bit quiet about this one. It’s nothing like as sexy as robotics, or analytics, or SMAC, but it’s also a disruptive force. One side of labor arbitrage within labor arbitrage is relatively defensive, but in spite of automation and robotics, mature &ld[...]
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Disruptive Forces and Their Impact on BPO: Part 2 - Analytics is becoming all-pervasive and increasingly predictive
Nov 07, 2014, by John WillmottRobotics has moved incredibly fast over the past year, but so has analytics. Analytics has been around in support of process improvement initiatives & Lean Six sigma projects for many years. It has also been present in areas like fraud analytics, which means at a personal level that you now have to re-instate your credit card most weeks. However, analytics is now becoming much more pervasiv[...]
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Disruptive Forces and Their Impact on BPO: Part 1 The Robots are Coming – Is this the end of BPO?
Nov 06, 2014, by John WillmottThis blog is the first of seven in a series looking at six disruptive forces and their implications for BPO. Some of these are widely talked about, others less so. This first blog sets the scene and looks at the impact of robotics. Subsequent blogs will consider the implications of: Analytics becoming all-pervasive and increasingly predictive Labor arbitrage is dead – long live l[...]
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September Quarter Results from Five Indian Providers: Generally Positive, but Indian Street Expects More
Oct 20, 2014, by Rachael StormonthLast week we looked at Infosys' quarterly results. It has been another busy week of quarterly reports from some of the Indian oriented service providers. How did five of them do? Syntel (Q3 CY14): Softness in Healthcare Greater than Expected Revenue was $228.3m, up 8.8% y/y, but slightly below consensus Operating margin was 29.8%, down 610 bps y/y, with less benefit from rupee depre[...]
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Accenture: Reinventing the Interface Between Business and Technology
Oct 16, 2014, by Rachael StormonthAccenture’s recent analyst event in New York was essentially a platform for it to showcase capabilities which it believes are key differentiators, both in terms of its attributes and also highlighting some areas of its portfolio which position it well for current and future profitable growth. The tone throughout was bullish re current and future performance - and recent performance supp[...]
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Payments Processing Services Market Heats Up: Financial Results of Six Key Vendors Show What it Takes to Win
Nov 06, 2014, by Andy EfstathiouChanges in banks’ regulatory capital requirements for businesses are leading banks to exit or downsize lines of business and increase the focus on other lines of business. Payments is an area where banks and non-banks are significantly increasing their commitments. Over the next five years the payments industry will change its entire shape, structure, and offerings. In the past, the complexi[...]
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Online Surveys for Outsourcing Market Research: Garbage In, Garbage Out
Oct 27, 2014, by Paul ConnollyIn his latest monthly newsletter, U.K. money-saving guru Martin Lewis gives his readers advice on how to make money from filling in online surveys. I rather like his opening line, which reads “Willing to give views on One Direction, washing-up liquid or what goes on between your bedsheets? If so, it's possible to earn £100s a year, without any special skill or talent.” Of [...]
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Unisys Q3 Results: Departing CEO Leaves on a High
Oct 27, 2014, by Rachael StormonthThis is the last set of quarterly results Unisys under the leadership of Ed Coleman – and it has been a last hurrah: Revenues were $883, up 11% y/y, up 10% in constant currency: the strongest quarter of growth for many years at Unisys Operating income was $77m, an operating margin of 8.7%, up 570 bps from a margin of 3.0% in Q3 2013. Significantly, the topline gro[...]
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Xerox Services: Q3 Disappoints, but Investing for Future Profitable Growth
Oct 27, 2014, by Rachael StormonthXerox Services Q3 Results: Any Signs of Progress? Xerox Services, now 57% of total Xerox Group revenues, is critical to the future of Xerox: it is its engine for future growth.We have been waiting for a better quarter for some time, but Q3 was not a stellar quarter for Xerox Services. Revenues Flat and Signings Down, with ITO the weakest link Xerox Services revenues in 2014 YTD are flat &[...]