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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
 
 

Our Thoughts

Positioning US industries for a stronger future

The COVID-19 crisis created uncertainty and change in the business world. Which changes will persist? What will the new world look like? How will people and firms adapt? Even as US technology, media, and telecommunications companies focus on responding to the global pandemic and its immediate repercussions, they will soon need to pivot past just recovering from the crisis, but rather putting themselves in position to grow and thrive in the post Covid era. Sudden change can loosen old foundations, creating opportunities for greater progress. Companies should reassess what and how they sell, how they operate, and how they can forge stronger and more direct relationships with customers.

Our Business Development and Sales Team for 2019
GroupBDO welcomes Ken Schwartz, Arun Jain and Tom Rocca to the senior sales team.
 
>
 
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.
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 18 September 2020 Never Forget
The following BPO & ITO vendors are representative of client profiles that we represent for Business Development and Sales Support Solutions.

Interesting IT/BPO Tidbits:  

  • Accenture announced the acquisition of SALT Solutions. SALT Solutions implements/maintains IT systems for production, operations, and logistics at leading German automotive, manufacturing, consumer goods, and chemicals companies. We believe this acquisition could add ~0.1-0.2% to annualized revenue.

  • Infosys announced agreement to acquire GuideVision. GuideVision is one of the largest ServiceNow Elite Partners in Europe and specializes in strategic advisory, consulting, implementations, training, and support. We believe this acquisition could add ~0.1-0.2% to annualized revenue.

  • EXLS updates 2020 guidance and provides Q3 guidance. EXLS plan to repurchase $80 million of stock in 2020 (previously expected $40 million). Business has rebounded better than expected over the past few months with clients' needs for data analytics accelerating and Operations Management seeing faster decision-making.

  • Infosys and SAP named as strategic partners by Essential Utilities. The two companies will implement SAP S/4HANA and the SAP customer relationship management and billing for utilities package in an agile operating model.

  • IBEX brings 500 jobs to Ocho Rios with region's first contact center. The facility is expected to open in Fall 2020, with IBEX occupying two complete floors. IBEX launched their first site in Jamaica in 2016 and have added a new site every year since, now having over 5k employees in Jamaica.

  • Accenture announces formation of Accenture Cloud First. With a $3 billion investment over three years, Accenture Cloud First will help clients across all industries rapidly become "cloud first" businesses and accelerate their digital transformation to realize greater value at speed and scale.

  • TCS helps Emirates NBD transform their international payments operations. Emirates NBD, Middle East's leading financial services group, has successfully deployed a centralized international payments hub for multiple entities, running on TCS BaNCS for Payments.

  • Insurance business process improvements during COVID! Dave, Robby and Patrick had to take an at-home blood test in order to get a discount on our insurance. We pricked our own fingers, got four drops and sent it in the mail for a streamlined, contactless experience.

 

The Critical Business Development Importance of 

 

  Q4
The race to 2021 client acquisition and profits has started.

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

 

The final 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 put 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 2021

Four Pitfalls to Avoid to Ensure Sales Success in Q1

It’s the first fiscal quarter of 2021. In your meetings and strategy development, you seek to build upon the success that you had in Q3 and 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 harming 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 2021.

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

focus and deliver. everyday.
>Take action now. 2021 has started.
 
Our Business Development and Sales Team for 2021
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 2021 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.
 

  GroupBDO >

  GroupBDO >

  GroupBDO >

  GroupBDO >

  GroupBDO >

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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
 
 

Our Thoughts

Positioning US industries for a stronger future

The COVID-19 crisis created uncertainty and change in the business world. Which changes will persist? What will the new world look like? How will people and firms adapt? Even as US technology, media, and telecommunications companies quickly refocus on responding to the global pandemic and its immediate repercussions, they are currently pivoting past just recovering from the crisis, but rather putting themselves in position to grow and thrive in the post Covid era. Sudden change can loosen old foundations, creating opportunities for greater progress. Companies are reassessing what and how they sell, how they operate, and how they can forge stronger and more direct relationships with customers. This is the time of the new outsourcing era.

© 2017 by GroupBDO LLC

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