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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 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
 
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. 
 
 
 
2020 Business Process Outsourcing Preview
>  Customer Care 2020 Preview
The Customer Care industry is benefiting from a solid economy, increased complexity of calls, and newer verticals, while under some pressure from the secular transition to automation; we view risk/rewards as pretty balanced overall (trading above three-year average multiples). We expect the market to grow low single digits over the next few years, with reasonable growth from newer verticals partially offset by pricing pressures, telco vertical and digital transformation. Give different customer and vertical concentrations, some companies can show out sized growth or declines.The Customer Care industry has seen some positive and negative trends.-Newer verticals and tech solutions are helping. We believe some verticals are growing well, along with certain products.-Digital automation can be positive and negative. Increased digital products and automation puts pressure on the industry as clients demand less live agent interactions,yet companies that help clients with digital can see some benefit.-Somewhat resilient in a downturn. In the last downturn, it took a little longer for the impact to hit the call center industry. By mid-2009, volumes really dropped off because companies were shutting down their services.-Company-specific impacts. We think some companies can perform better/worse than the overall industry, based on concentrations within certain verticals/clients/service offerings (i.e. communications softness)
>  Offshore BPM 2020 Preview
We like the BPM industry as a strong above-market growth industry with highly recurring revenue characteristics; we like G the best of the group for 2020. We expect market growth of high single/low double-digits over coming years, and view the industry as somewhat recession-resistant given highly recurring/non-cyclical work, existing clients adding services,reasonably low penetration, and very high renewal rates.The BPM industry continues to grow around high-single-digits, with high levels of recurring revenue.-Market expanding nicely -- Many participants can win given solid secular growth backdrop. Growth opportunities are not dependent on stealing clients, as (1) existing clients keep spending more (and renew at high-90% rates), and (2) many clients are still new to outsourcing.-Broadening client needs -- Clients are increasingly looking at full redesign plans that can include several-year ramps of recurring BPO services.-Industry growth strong -- all growing around high single/low double-digit organic constant-fx growth.-Fairly resilient in a downturn - The work is highly recurring, and the enterprise group has a larger/more diverse client base.
>  IT Services 2020 Preview
The IT outsourcing/consulting industry likely continues to grow around mid-single-digits organically driven by the move to digital. While there continues to be some pricing pressure in the more commoditized parts of IT outsourcing, the companies specializing in differentiated cloud/digital/analytics have an advantage (these higher value offerings are growing over above mid-teens organically). Some discretionary client projects may get cut in a recession, but we acknowledge they also have a high level of recurring business.The IT outsourcing/consulting industry likely continues to grow mid/high single digits organically driven by move to digital. There are levels of recurring revenue, but some discretionary-driven revenue as well. In a downturn, these companies may be negatively impacted as some discretionary spending/IT projects for clients get cut.
Global BPO / IT Operational Notes and Movers and Shakers
Week ending Friday 21 February, 2020
The following BPO/BPM/ITO vendors are representative of client profiles that we represent for Business Development and Sales Support Solutions.

THOUGHT OF THE WEEK

 What We Have Learned. 1) Wind is in the sails for digital (especially around data optimization) and cloud/ cyber-security offerings. All the participants view this as a multi-year opportunity, still in the early stages, but solutions are now being scaled. 2) A strong federal funding outlook is helping drive strong and improving revenue growth rates for the government services providers as they have now clearly emerged from the leaner Budget Control Act (BCA) years. Tight labor markets, especially in the greater Capital region, remain the largest impediment to growth. 3) To capture the growth, providers are reinvesting in the business (both in the commercial and government sectors), which is tempering margin expansion. That is okay, because investors are now paying higher multiples for growth, not just cash generation as they did a few years ago.

Government Services

Market. Seen as $160B+ growing 2-5%.

Nothing like a desire to go home for the holidays. Congress presented us with not only the National Defense Authorization Act (NDAA, i.e. how to spend the money), but also the passage of "regular way" appropriations (i.e. the money) for GFY20. The two bills should provide comfort for government agency contracting officers to drive strong award activity in the next three quarters, in our view.

THE WEEK AHEAD

EXLService (EXLS 2/27). Should offer initial CY20 guidance. All eyes will be on the adjusted operating margin level (and yr/yr improvement), now that they have fully wound-down the problematic Health Integrated business. We'll also be watching growth in the analytics segment, following a slowdown in Q3, as EXLS likely needs it to return to double-digits to hit their consolidated long-term revenue target of ~7.5-9.5%.

 

 

 

WHAT WE LEARNED THIS WEEK

IIAOP Outsourcing Conference Notes . No turning back now for users, as it is all about scaling digital/ cloud centric solutions. Talent access remains the primary impediment to success/ growth. Data, analytics, cloud, cyber-security, artificial intelligence (AI) are hot, blockchain and quantum are not. Surprisingly robotics process automation (RPA) was barely mentioned after being the hot topic the last few years. We assume that means just part of the regular tool kit now.

 

Leidos (LDOS). Q4 better across the board. Initial CY20 guidance also better, but somewhat confusing about what is included (Dynetics and some NGEN-SMITS) and what is not (L3Harris Security purchases). We have put L3Harris deal in our numbers as well feel it's more useful for investors in evaluating the stock.

 

ManTech (MANT). Impressive Q4 organic growth of 15%, although helped in part by higher than normal ODCs (pass-throughs). Overall business is good and growth should remain at, or near, the top of sector leaders, although mix (their clients prefer cost-plus) will likely keep EBITDA margin lower than peers.

 

EPAM (EPAM) . Beat the expectations (revenue growth was 25%) again for this really well positioned provider of digital engineering and consulting. Initial 2020 organic (cc) revenue growth expected to exceed 22%. Utilization has been running hot, so management seeking to reset, which could lead to operating margin actually being in the guidance range in 2020 rather than a little above. Lots of cash, so look for slightly bigger M&A this year. Competitor Globant (GLOB) followed up with strong growth (+32% yr/yr in Q4 and +26% for FY19) later that day.

 

NASSCOM. The India IT trade group estimates growth in FY20 (March) for the India IT sector at 7.7% down from the estimate for FY19 of 8.1%.

​Interesting IT/BPO Tidbits

  • This week, ACN announced an agreement to acquire VanBerlo. Founded in 1982 and headquartered in Netherlands, VanBerlo is a product design and innovation agency. VanBerlo innovates products and services for companies in many industries, including consumer goods, mobility, healthcare, banking and high-tech. We estimate the acquisition could add ~$15-20 million in annual revenue (<0.1% per year).

  • Infosys partners with GE Appliances to enable digital and workplace transformation. As an IT services partner, Infosys will help GE Appliances modernize its IT infrastructure and run IT in managed services mode as part of the overall innovation and optimization agenda.

  • WNS announces addition of Jason Liberty to Board of Directors and Audit Committee. Jason is the Executive Vice President and Chief Financial Officer for Royal Caribbean Cruises. He is responsible for overseeing the company’s Finance and Accounting, Strategic Planning, Information Technology, Legal, and Risk Management functions.

  • This week, ACN announced an agreement to acquire Icon Integration. Founded in 2011 and headquartered in Australia, Icon Integration is a technology consultancy that provides SAP digital supply chain solutions and services as well as specialized business intelligence solutions to clients across Australia and New Zealand. We estimate the acquisition could add ~$10-15 million in annual revenue (<0.1% per year).

  • TCS, Infosys to open up internal e-learning courses to consumers. TCS and Infosys are exploring options to open up their internal e-learning courses to consumers directly. They currently provide training to over 700,000 employees, through their online platforms-Wingspan-Lex and iON. Infosys' Wingspan, which measures time spent by an individual in learning a new software, will be sold to its existing enterprise customers.

  • NASSCOM and CIO Klub sign MoU for building a stronger IT industry. With this collaboration, CIOs would share industry insights and best-practice perspectives while gaining from NASSCOM’s access and facilitation in specific areas. CIOs can share their expert views which would help, guide & mentor the start-up ecosystem.

  • This week, ACN announced an agreement to acquire VanBerlo. Founded in 1982 and headquartered in Netherlands, VanBerlo is a product design and innovation agency. VanBerlo innovates products and services for companies in many industries, including consumer goods, mobility, healthcare, banking and high-tech. We estimate the acquisition could add ~$15-20 million in annual revenue (<0.1% per year).

  • Infosys partners with GE Appliances to enable digital and workplace transformation. As an IT services partner, Infosys will help GE Appliances modernize its IT infrastructure and run IT in managed services mode as part of the overall innovation and optimization agenda.

  • WNS announces addition of Jason Liberty to Board of Directors and Audit Committee. Jason is the Executive Vice President and Chief Financial Officer for Royal Caribbean Cruises. He is responsible for overseeing the company’s Finance and Accounting, Strategic Planning, Information Technology, Legal, and Risk Management functions.

  • This week, ACN announced an agreement to acquire Icon Integration (link to note). Founded in 2011 and headquartered in Australia, Icon Integration is a technology consultancy that provides SAP digital supply chain solutions and services as well as specialized business intelligence solutions to clients across Australia and New Zealand. We estimate the acquisition could add ~$10-15 million in annual revenue (<0.1% per year).

  • TCS, Infosys to open up internal e-learning courses to consumers. TCS and Infosys are exploring options to open up their internal e-learning courses to consumers directly. They currently provide training to over 700,000 employees, through their online platforms-Wingspan-Lex and iON. Infosys' Wingspan, which measures time spent by an individual in learning a new software, will be sold to its existing enterprise customers.

  • NASSCOM and CIO Klub sign MoU for building a stronger IT industry. With this collaboration, CIOs would share industry insights and best-practice perspectives while gaining from NASSCOM’s access and facilitation in specific areas. CIOs can share their expert views which would help, guide & mentor the start-up ecosystem.

 

                                           

 

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

There is no “holiday slowdown “ 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.