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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
 
 
 
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 Is your BPO looking for United States companies that want to outsource? Contact us today. clientservices@groupbdo.com or 512-688-1931 
 
 
 
 
 
 
 
 

 
 
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.
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 07 August 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: Here Come the Feds. Both Aerospace & Defense "primes" and several of the services providers (MANT, BAH) report CQ2 next week. Progressive legislators led by Senator Bernie Sanders sought to shift $74B in funding out of the $740.5B budget for GFY21. It was soundly defeated. Combined with what we understand about the evolving (Biden-driven) Democratic "platform," defense spending does not appear on the immediate chopping block to pay for either COVID-19 costs or more domestic priorities. Biden priorities and deficit concerns (in our view) were the major concerns for investors that drove the pullback in shares since early June. We expect solid "prints" from this "defensive" sector in the coming week. Our current focus names are CACI (CACI; reports 8/12) and Leidos (LDOS; reports 8/4).

THE WEEK AHEAD

  • LDOS(8/4). Will the COVID-19 impact be modest like BAH or more pronounced like GDIT? Is relative positioning truly better if Biden wins?

  • PSN (8/5). Government business should be fine, but will the half from "critical infrastructure" be hurt by Middle East exposure or concerns on the ability to source non-U.S. federal funding?

  • DXC (8/6) Unexpected sale of former iSoft business announced. Are there more units (outside the original $5B in targeted units) that could be up for sale? How much of proceeds are headed to offset a deteriorating EBITDA profile of the remaining business and therefore higher leverage?

  • EPAM (8/6). Heavy exposure to challenged verticals and discretionary spending. Previously lowered revenue growth guidance more than peers.

  • EXLS and G (8/6). Long-term contracts, but some volume-based ones. How does their model change as clients accelerate digital transformation?

  • PRSP (8/6). All about transitioning to life after the NGEN contract and whether Activist Jana investment will lead to "strategic" changes.

WHAT WE LEARNED THIS WEEK:

  • Investors Looking for Signs of Recovery? LDOS indicated additional (unguided) headwinds from COVID-19, and the stock price was punished. Those indicating more positive commentary fared better. Many seemed to have pulled back after the prints as commentary generally remained cautious.
    Discretionary is in the "Eye of the Beholder

  • ." EPAM's Q2 was not as bad as feared, as we believe their primary focus on cutting edge (digital) software development/ integration has tempered the impact from client reductions in discretionary spending, i.e. these are high priority projects.

  • Still Waiting on Congress. The government service providers have included an expectation that Section 3610 of the CARES Act will be extended in the latest COVID-19 stimulus bill. We also expect it will give some known sponsorship, but legislation not done yet.

Interesting IT/BPO Tidbits:

  • Genpact and Deloitte form strategic alliance to accelerate business transformation and build enterprise resilience. The alliance will deliver a number of tangible benefits to clients that can be leveraged quickly to help them accelerate their digital transformation journeys, with an emphasis on mission-critical services in areas such as finance and accounting, supply chain, and procurement.

  • WNS launches EXPERIUS, a CX solution. EXPIRIUS, WNS’ proprietary solution, enables brands to have analytics-driven, intelligent “omnichannel” conversations with their customers. EXPIRIUS is intended to accelerate speed-to-market, and deliver significant improvement in Net Promoter and Customer Satisfaction Scores through a digital experience helping enhance customer lifetime value and brand loyalty.

  • Accenture and Avanade Canada jointly win the 2020 Microsoft Canada Enterprise Impact Award. The annual Canadian awards recognize Microsoft partners that have focused on bettering the lives of Canadians, aligned their efforts with customer excellence, and who have created innovative solutions leveraging Microsoft products, services and technology.

  • Genpact and AppZen partner to transform travel and expense audit process. The two companies will launch a regulatory compliance-as-a-service (RCaaS) solution that significantly advances T&E operations, allowing finance organizations to automate processes and audit expenses within minutes of submission.

  • Accenture awarded a position on Air Force contract for Advanced Battle Management. Accenture Federal Services has been awarded a position on an Air Force contract to build a modernized and interoperable Advanced Battle Management system. The five-year, indefinite-delivery/indefinite-quantity has a contract ceiling value of $950 million and five option years.

  • TTEC announces agreement to acquire VoiceFoundry. VoiceFoundry is a global partner of AWS, creating an end-to-end customer experience (CX) delivery solution for Amazon Connect.

  • TCS launches ignio AI.Assurance to transform software testing and speed up software release cycles. The new product enables development teams to harness the power of AI and machine learning to overcome the bottlenecks and deficiencies of manual/assisted testing methods.

 

 
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 2020-21
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.
 

© 2017 by GroupBDO LLC

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