BPO + SaaS = Business Services

Ann All

As offshore business process outsourcing (BPO) firms look to expand their business models, they are reportedly angling to make acquisitions, especially in geographies with growing demand for outsourced services, such as Europe.


But two recent acquisitions by India's Cognizant Technology Solutions point the way to what could become a broader trend, the convergence of BPO and software-as-a-service.


As Jeff Kaplan writes in his THINK IT Services blog, Cognizant last month announced its purchase of marketRx, which provides Web-based analytics and other services to life sciences companies. And last year Cognizant bought AimNet Solutions, an IT infrastructure managed service provider.


These types of purchases help BPO firms "shift their operations from a labor-centric to a software enabled model," writes Kaplan, an important consideration in an industry experiencing problems with staff shortages and attrition. BPO providers can use SaaS to automate their existing processes and services and to add new ones.


So are these companies in the BPO business or the SaaS business? It really doesn't matter, says Kaplan.

Industry analysts and investors may be concerned about these categorizations, but most customers will see this company and larger vendors like Cognizant as business services companies.

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Add Comment      Leave a comment on this blog post
Jul 7, 2008 12:53 PM Vikas Sharma Vikas Sharma  says:
The demand for the offshore outsourcing services has increased tremendously over the last five years. Inherently the need to automate the existing processes also generated. So the call center operations are changing from a labor-centric to a software enabled model. Automated software packages are being used to provide full satisfaction to the clients requirements. This integration of ITES and IT sector helping a long way in providing efficient and quick services to the customer. The Increase in global demand for network integration, application management and services leads to merging of IT and IT ES services. Reply
Apr 2, 2010 8:31 AM Enterprise Asset Management Enterprise Asset Management  says:

Business process outsource is the most demanding services.

SaaS (or bundled BPO) can work and would be more appropriate for mundane, run of the mill non-unique processes such as payroll, travel expense management, run-of-the-mill workflow solutions, simple accounts payable that is not tied to the company's upstream ERP processes, etc. However, as a consumer of SaaS, I would be very concerned about exit strategy, data recovery, communications security, and internal controls. I would want to make sure that the SaaS provider is SAS70 compliant and finally, I would never put my critical processes (what is critical will vary from company to company) on SaaS.

May 18, 2010 8:41 AM cmms software cmms software  says:


In my concept ,SaaS, is incredible, and BPO can provide the flexibility to make it work effectively for businesses, supported by low-cost resources. You are correct is highlighting that there is a culture clash between technology and operations people in understanding how SaaS can be most effectively deployed. But is should prove to be a great change-agent which we so desperately need.

Thanks for this nice blog!

Sep 17, 2010 2:14 PM nikki3333 nikki3333  says:

The outsourcing services is the best services over all in India.and it has increase very fast.and a way of income. The outsourcing services gives a income or job.

Oct 22, 2010 9:23 AM bpo services bpo services  says: in response to nikki3333

bpo industry provides more employment opportunities.

Jun 11, 2014 10:28 AM Austin Austin  says: in response to Enterprise Asset Management
that was a good combination. Reply

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