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BPO Sales Outsourcing and Strategy Solutions. Let us drive your 2020 revenue growth in the United States.
Enterprise Sales Support for CCO, Integrated IT+BPO & BPO Pure Plays
 
 
 
America is back to Work. Let GroupBDO help drive new revenue growth opportunities and client relationships that produce new sales growth after the Covid-19 pandemic.
 
 
 
 
 
 
 
 

 
 
Our Business Development and Sales Team for 2019
GroupBDO welcomes Ken Schwartz, Arun Jain and Tom Rocca to the senior sales team.
 
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Our BDO team members drive new revenue streams for you and your BPO organization.We identify, meet, and present to your targeted prospective clients across North America. We bring years of management sales experience ranging from FedEx, American Express, SunGard, Genpact and Sutherland Global. We become your instant U.S. sales team.
Contact us today to launch your successful 2019 revenue growth initiatives.
focus and deliver. everyday.
  Our BPO Sales and Strategy Solutions
Enterprise Sales Support for CCO, Integrated IT+BPO, BPO Pure Plays, Digital Operations + Platforms (DOP) and AI and Intelligent Automation Solutions.
 
Driving U.S. Business Development and Sales to the Office of the CxO since 2007. The Importance of First Mover Advantage. 
Now is the time to discuss your 2020 U.S. Sales Strategy. 
 
 

 

>Business Development during the COVID-19 Pandemic. This is the time to be calling prospects.
There is doubt that the United States and the world are in a fight with this global virus. But the American economy must also be protected and soon the engine of commerce will be turned on again. During this time of massive WFW (Work from Home) conversion, the end result for sales has never waivered. Call. Talk. Exchange ideas. Set Meetings. Sell. Repeat.
If your sales team is getting a little too relaxed from the home office, let GroupBDO help become a force multiplier to get your internal Business Development and Sales teams swinging for the fences again.
 
Business Process Outsourcing Industry Overview Spring 2020

 

What is Offshore BPO?

•What is it? Business process outsourcing(BPO) is when companies contract selected business processes and functions of an organization (i.e., F&A, customer service, analytics, supply chain management) to a third-party provider

•Value proposition –Outsourcing provides opportunities for cost reduction (could be 30-40% cost saving upfront and up to 75% over time) while increasing the amount of time/resources used to grow the “core” part of a company’s business

•Market size –We estimate the ITO/BPO market size to be $1.1-1.2 trillion, with the BPO market ~$330-340B (includes BPO, CRM, and F&A)

•Growth –We estimate mid-/high-single-digit growth over the cycle

•Current state of the industry –COVID-19 will likely have a noticeable impact on outsourced industries (like financial services, manufacturing, and travel), however, this could accelerate the transformation to digital over the long term

How Do Contracts Work?

•Sales cycle –12-18 months•Training –Three months for training/onboarding

•Contract length –Outsourcing contracts typically ~3-5 years and analytics contracts are ~1-3 years. A portion of analytics contracts (~one-third of deals) commonly starts as a project and turn into longer-term contracts

•Renewal rates –typically 90%+

•Termination fees/terms –These vary by company and contract (nothing standard across the industry)

•Annual productivity benefit to clients (acts as price benefit to the client) is ~2-3%/year –This creates stickiness, and we believe also acts as a competitive moat (the longer the duration, the more efficient the BPO provider becomes, and harder to be unseated)

ITO/BPO Market 2019E

•Total IT/BPO market of approximately $1.1-1.2 trillion–IT Outsourcing ~$760-770 billion –We define ITO as IT professional services, IT infrastructure management, and ADM–Business Process Outsourcing ~$330-340 billion –We define BPO as industry-specific BPO, CRM, and F&A BPO–Human Resources Outsourcing ~$55-60 billion

Digital/Analytics/RPA

•Robotic process automation(RPA) –Application of technology for automating complex business processes. –Software robots act as virtual workers –they capture and interpret existing applications for processing a transaction, manipulate data, trigger responses and communicate with other digital systems in a way that is usually done by a person or an entire team.–BPO providers can RPA to offer even lower rates by applying RPA to own processes.–Company can use both BPO and RPA levers applied to the same processes.

•Pure BPO potential cost-saving–15% to 40% within five years. The cost savings increase as the outsourced process matures and goes through continuous improvements.

•Cost savings potential with BPO and RPA–50% to 95% according to The National Association of Software and Services Companies (NASSCOM). RPA in BPO assumes an end-to-end driven approach, and integration of predictive analytics to guide decision support.

 

 

BPO Market

•Size of BPO Market –We estimate around $330-340 billion, including BPO, CRM, and F&A–India BPO delivery –We estimate ~$35 billion–Rest of World delivery –We estimate ~$300 billion

•Growth–We estimate mid-/high-single-digit YoY growth–India BPO –High-single-digit/low-double-digit yoy growth–Rest of World –Mid-single-digit YoY growth (in line with GDP growth)

Longer-Term BPO Thoughts

•Longer-term thoughts/sentiment–Continued organic revenue growth (mid/high-single digits) •Market expanding nicely–Opportunities are not dependent on competitive wins, as (1) existing clients keep spending more (and renew at high-90% rates), and (2) many clients still new to BPO

•Broadening client needs –Clients are increasingly looking at full redesign plans that can include several-year ramps of recurring BPO services

•Fairly resilient last downturn; however, COVID-19 will be a test –Highly recurring work, and the group has a larger/more diverse client base than 2008/2009 (G grew each year, while EXLS/WNS each had one mild down year due to client-specific issues)

 

 

Global BPO / IT Operational Notes and Movers and Shakers
Week ending Friday 26 June 2020
The following BPO & ITO vendors are representative of client profiles that we represent for Business Development and Sales Support Solutions.

 

THOUGHT OF THE WEEK: Pace of Recovery for Project Work Could Prove Harder to Predict Than the Decline. Most report that business had stabilized (at much lower levels) by mid-to-late April with many providers now indicating seeing some "green shoots" of activity, including some in the harder hit end markets (i.e. travel, hospitality, retail, energy). The commentary is often that the client realizes they need to accelerate their "digital transformation" if they have any hope of surviving long-term. What we have been trying to get a better handle on is client behavior around "discretionary" spending. The sourcing advisory community appears to be aligned in an expectation for meaningful reductions in spending, while the providers (not surprisingly) are not quite as negative. We have heard two consistent comments. The first is that discretionary (project) spending is being rapidly reprioritized and non-essential projects canceled. Second is that the pace of spend (i.e. number of people deployed on a project) has been dramatically reduced even for the more essential efforts. So step one was focused on business continuity (i.e. setting up work-from-home). Step two has been about cutting costs to offset the impact of lost revenue. We believe we are now entering step three, which is clients deciding how quickly to get back to the "new normal." From an investor perspective, our concern is that the recovery in discretionary IT spend proves slower as the client's business recovery remains sluggish and concern over a second wave of the virus persists. While there is generally a broad range in revenue estimates for the second half of CY20, most expect a return to, or near, pre-COVID levels during CY21.

THE WEEK AHEAD:

  • ISG Index Call (7/8). Long-running quarterly update on outsourcing awards. Helpful in getting a sense of the activity in the "run" side of IT services and a general pace of decision making.

  • Tata Consultancy (7/9). FQ1 print for largest, and well regarded, India-centric IT services leader often helps set the tone for coming earnings reports. While offering commentary, they do not provide formal guidance.

WHAT WE LEARNED THIS WEEK:

  • ACN (6/25). This global IT/BPO services leader reported FQ3 (May) results that proved to be better than feared to lead to a meaningful short-covering stock price rise. Revenue, margin, and EPS guidance was shifted to the lower end of the prior ranges. Book-to-bill (1.0x) and commentary that awards would be strong in FQ4 (although did not clarify between large outsourcing and shorter-term consulting) seemed to be the key factor in investor enthusiasm. Areas of near-term strength included cloud transformation (to the Hyper-scalers AWS, Azure, etc.), digital, security, and (business) operations support. Clearly, ACN benefited from helping clients rapidly adapt to a COVID-19 world, but it remains unclear by how much and what is sustainable. They are moving aggressively to trim support costs to offset the lower expected revenue and near-term weakness in utilization. On the staffing (supply) side, like others, they have slowed hiring, trimmed the use of subcontractors, extended start dates, reduced the level of promotions, and intensified performance reviews. They indicated there was no broad-based reduction in billable staff. One has to be impressed by how quickly this ~$44B global enterprise reacted.

  • Visa Constraints. The Trump Administration continued its efforts to limit immigration extending a pause on non-immigrant H-1B (3 years extendable to 6 years) and L-1 (intra-company) visas until 12/31. This only impacts those seeking a visa after 6/23, which will limit any near-term impact on India-centric providers. This presidential proclamation happened despite wide-spread push back from U.S. industry, including the major U.S. tech companies that have significant immigrant workforces. The President also requested a review of the H-1B and L-1 visa programs.

  • FX Impact on CQ2 . Our analysis (6/25) suggests meaningful yr/yr and qtr/qtr operating margin benefit from a weakening Indian Rupee (INR). This should help offset some of the COVID-19 impacts. Having said that, the INR has been fairly stable since most service providers last reported, so we do not expect much "surprise" relative to expectations. For revenue, we see little impact from the British Pound (GBP) and the Euro.

  • SAIC (SAIC). We hosted the CEO for investor calls. She remains confident in their ability to improve organic growth to the mid-single digits, advance EBITDA margin by 10-20bp annually, and rapidly reduce acquisition-related debt. Remains our favorite government services stock.

Interesting IT/BPO Tidbits

  • Cognizant collaborates with Verily Life Sciences to facilitate COVID-19 testing across the US. Verily, the health and life sciences company of Alphabet is working with Cognizant to increase an individual's access to test scheduling. This effort is part of Cognizant's pledge to contribute $10 million to pandemic relief efforts.

  • TCS deploys digital solutions remotely to help Adani Ports transform Mundra operations. TCS deployed DynaPORT, a state-of-the-art terminal operating system at the Mundra CT4 terminal for Adani Ports and Special Economic Zone, India's largest private port operator, and end-to-end logistics provider. The deployment was completed remotely while under a lockdown.

  • Accenture Federal Services to open Advanced Technology Center in St. Louis. The center will provide US federal government agencies with digital, cloud, automation, AI, and cyber solutions. The center is expected to bring up to 1.4k new technology jobs over five years.

  • Wipro wins infrastructure modernization and digital transformation pact from E.ON. Wipro announced they have been awarded a strategic, multi-year infrastructure modernization and digital transformation services engagement by Germany-based energy company E.ON.

  • Cognizant named a leading provider of Guideware services to insurers. Everest Group's Guideware Services PEAK Matrix analyzed 16 companies that offer services for Guideware insurance platform software, which is used extensively by Property and Casualty insurers to support recurring revenue transactions. For a top P&C carrier, Cognizant applied AI to its real-time customer service, improving experiences and cutting supervisor review times by 35-40%.

  • TCS helps Zebra Technologies deploy a unified platform to enrich partner experience. Zebra selected TCS to help modernize their online product selection and configuration experience for their partners. The solution will provide Zebra with the ability to customize offerings while providing a streamlined commerce stack, which optimizes the total cost of ownership.

 

 
The Critical Business Development Importance of 
 Q1>
The race to 2020 client acquisition and profits has started. Again.
Why?

There are no days off for BPO sales in the United States. 

 

The first Quarter business development process as historically been great productive months for GroupBDO and our clients for the following reasons:

  • C level contacts need to get the new year off to a great start. They are more focused and open to accept calls, but more importantly to speak frankly and openly regarding what may not have worked in their business development and sales process during the year.

  • Most sales and business development teams grow weary by Q4, this is when our teams take advantage of the mindset of the weary.

  • Companies that slow down their BD and sales efforts in Q4 will never truly make up the time as competitors will have already scheduled multiple calls/visits in Q4 that puts their company at the head of the line when others are just starting to identify and qualify opportunities.

  • Typically companies are looking for new vendors for the new year and the relationship-building starts now for the new year.

  • The is no slowdown in business development and sales work during the year.

 
 
The Importance of First Mover Advantage for 2020 

Four Pitfalls to Avoid to Ensure Sales Success in Q1

It’s the first fiscal quarter of 2020. In your meetings and strategy development you seek to build upon the success that you had in Q4. Ahead of you is a brand-new chapter, full of possibility and promise. While it’s important to celebrate your recent successes and create a plan to be even better this year, don’t get ahead of yourself. All too often, salespeople get complacent after having a great fourth quarter, and take their foot off the gas as the new year rolls in. Starting small and avoiding common missteps is the best way to ensure success for yourself and your team. 

Pitfall #1: Slowing your momentum and starting over.

If you’re coming off of a great fourth quarter, it’s a natural reaction to ease up and coast on your successes. However, this is the quickest way to set yourself back in the pursuit of having an even better sales year. Instead, use your momentum to your advantage and act with the same urgency in the new quarter that you did in the previous quarter. You’ll be ahead of schedule before you know it if you set yourself up for a positive start. As a leader, maintaining this level of passion and drive will motivate others to operate to the best of their ability, breeding a culture of determination and hard work to begin the year. One great way to keep up the momentum is to have a new year kickoff meeting in the first couple of weeks in January. Schedule a meeting in your office to get your sales team excited, by reviewing the goals you’ve set for the year and how you all will work together to accomplish them.

 

Pitfall #2: Emptying your pipeline.

Typically, the mindset in the waning months of the previous year is to close as much business as possible. This is an important step in the process, but as the calendar shifts, your priorities should too. To start the year, you need to fill your pipeline with as many qualified suspects as possible. The majority of your time should be filled with prospecting. By focusing on prospecting and driving leads early in the year, you’re arming yourself and your team with the tools to be successful all year long.

 

Pitfall #3: Setting overly conservative or aggressive goals.

Another way to prime yourself for greatness is to set higher expectations based on what you achieved in the previous year. Whether that’s a new revenue number for your business or an increased number of qualified leads in the first quarter, make sure your business goals are challenging, but not too lofty. It’s important that your goals are still realistic, but you don’t want them to be too conservative or you and your team may not be as motivated to achieve them. If you’ve set challenging business goals, one way to keep your team motivated is to incentivize each individual salesperson based on their individual goals. That way, everyone will be equally motivated and off to a strong start in reaching the goals you’ve set for the year.

 

Pitfall #4: Disregarding industry shifts.

Don’t overlook industry shifts or trends. Successful sellers and business owners are constantly staying up to date on the current happenings in the industry, but the best are looking past that to “what’s next.” Those that can anticipate events in the industry based on existing trends can prepare themselves to adapt accordingly. To blindly progress through the year and only react to changes as they occur is risky, and can ultimately hinder your sales numbers and achieving your overall goals. Staying in tune with what’s relevant in the industry will help to shift your business goals so you can still achieve success. Remember, what you did last year, may or may not achieve the same results this year, but either way, if you want to do better, you will have to grow, change and adapt in 2020.

Contact GroupBDO to get your team off to a great start.

focus and deliver. everyday.
>Take action now. 2020 has started.
 
Our Business Development and Sales Team for 2020
The Group's experienced executive sales team consistently drives new revenue opportunities to  our clients
>
Our BDO team members drive new revenue streams for you and your BPO organization. We identify, meet, and present to your targeted prospective clients across North America. We bring years of management sales experience ranging from FedEx, American Express, SunGard, Genpact and Sutherland Global. We become your instant U.S. sales team.
Contact us today to launch your successful 2020 revenue growth initiatives.
 
 
Driving BPO Sales in the United States >
Want to know more about how we drive revenue for our BPO & Technology clients? Contact our sales team at 512-688-1931 We are here to assist you and your team. Contact us by phone, email or via our social media channels.
focus and deliver. everyday.
 

© 2017 by GroupBDO LLC

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