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Capgemini, IDC, BPO, Strategic, Transformation, Outsourcing

Capgemini-IDC report shows BPO moving toward strategic business transformation

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18 Jan 2007 | (News)

Capgemini and IDC announced the release of “From Transactional to Strategic
BPO:  Putting the Evolution in Context,” which shows that companies increasingly depend on outsourcing for strategic benefits.

Co-authored by IDC and Capgemini, the special report describes how business process outsourcing (BPO) is evolving from a proven approach to reduce costs and improve productivity, into a strategic tool that companies are increasingly using to accelerate innovation and meet critical business challenges.

“Companies are indeed turning to BPO for its capacity to rapidly and dramatically transform organizations in ways that drive innovation and deliver sustained, ongoing business value,” said Bob Welch, group vice president and general manager, IDC Global Services. “To gain an in-depth perspective on this phenomenon and the reasons behind it, Capgemini and IDC collaborated to produce this special report.  It’s a compelling read not only for companies that are already tapping into the transformational power of BPO, but especially for those businesses considering it.”

Reflecting the latest perspectives on outsourcing among top company executives throughout North America, the report found that:

  • The vast majority (85 percent) of companies are saving at least as much as they invest in outsourcing.
  • Two of out three (63 percent) companies are investing the savings back into the organization to improve operational performance, drive innovation or support growth.
  • More than four out of ten (44 percent) businesses said the most important criterion in selecting a BPO provider is its ability to deliver transformational services.

“From Transactional to Strategic BPO:  Putting the Evolution in Context” can be downloaded at www.us.capgemini.com/outsourcing.

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