Nasscom starts tomorrow, so I’m in Xansa’s office in Chennai hosting a visit from a prospective client before jumping on a plane to Mumbai early tomorrow morning.
There are some interesting items appearing in the news here as a prelude to Nasscom starting, with a lot of the talk around ‘knowledge process outsourcing’, not simply BPO. Actually, this is what Xansa has been doing for some time - the outsourcing of ‘knowledge-rich’ activities involving significant analysis of an issue or problem and then working the process through to completion. The processing of complex metered billing exceptions and customer correspondence for Thames Water is an example of just that - all undertaken by our teams in Noida, Delhi, as is our ‘supplier revenue assurance’ process for BT in which we analyse whether the correct energy usage has been made against benchmarks to establish opportunities for cost-savings, something which has already delivered significant benefit.
The Economic Times of India ran an article on KPO only yesterday, predicting 40 to 50% growth in the next five years, and revenues touching $15bn by 2010 in India alone, along with the generation of huge numbers of jobs. It also talks about the growth of ‘home-shoring’ with knowledge workers utilising technology to work from home to deliver the service.
January’s Harvard Business Review carries a lengthy article on the importance of analytics and how the successful companies (references Amazon, Wal-Mart, Barclays and others) focus efforts on the analysis of their key business processes (supply chain, customer loyalty, pricing and so on) in order to “wring every last drop of value from those processes”. Sadly, it's under subscription, but what the article focuses on is the extent to which these organisations have developed analytics expertise ‘in-house’. What’s missing for me is the value that outsourcing can bring to this - the KPO question. I’ll be looking out for this debate at Nasscom over the next few days.
More later... Nigel