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Go4customer Blog

Application Outsourcing : A New BPO Practice


As businesses strive to outsmart their competition, by improving its services, products, or revenue model innovations; leveraging the cost advantages has become imperative for improving operational efficiencies. This requires effective use of the latest technology, combined with skilled manpower and hi-tech implementation of IT tools.

Also Read: BPO Companies Improve Business Outcomes

Application outsourcing or AO helps companies in optimizing their businesses by trimming down the total ownership cost and expanding its geographic scope, by using technology, process, and industry capabilities of the third-party service provider. A survey conducted by IDC in the year 2008 suggested that the CEO of the companies is increasingly benefiting from outsourcing business process their transformation projects, which includes portfolio enhancement, portfolio optimization, and redesign their existing work through the technology stack.

Key Industry Trends

With the increasing pressure to amplify revenues and augment shareholder value, the C-level executives are improving their skills to knack rapidly expanding and more diverse customer requirements across the globe. Restructuring the company business through merger and acquisition activities and rising need to access new markets require better management though technology portfolios. As a result, companies are taking the following steps in order to cope with this rising pace:

Participate in the Self-Funding Transformation Model: Even though re-architecting, re-hosting, and transforming legal systems for producing packaged solutions stands high priority for clients, the parallel need exists to trim down the existing cost as well as reinvesting these savings to drive organizational transformation.

Leverage New Service Models: Many organizations are widening their deployment of innovative service models to congregate their internal necessities for better dynamic and cost-effective service deliveries. As a result, the requirement of hosted use based infrastructure model is likely to expand with the increasing integration and use of SaaS solutions within the conventional application portfolios.

Also Read: BPO Industry Focuses On Strong Profitable Growth In Time To Come

Switch to Contemporary Outsourcing Model: Although many businesses are internally transforming by following business process re-engineering, the importance of selecting a suitable outsourcing partner is well-recognized. In a modernized IT-enabled environment, the application of infrastructure and portfolio expertise brings multiple benefits to the firm at both operational and strategic levels.

To conclude, outsourcing business applications to a well-established service provider is a widely accepted practice in today competitive business environment. As the value, scope, and power of application outsourcing business is significantly expanding, companies are selecting an application outsourcing solution that has required experience, maturity, along with the scope of providing effective services while maximum value and mitigating the business risk.

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