{"id":1694,"date":"2010-04-13T07:17:00","date_gmt":"2010-04-13T07:17:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/bpo-saas-and-cloud-too-many-people-arent-seeing-the-bigger-picture\/"},"modified":"2010-04-13T07:17:00","modified_gmt":"2010-04-13T07:17:00","slug":"bpo-saas-and-cloud-too-many-people-arent-seeing-the-bigger-picture","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/bpo-saas-and-cloud-too-many-people-arent-seeing-the-bigger-picture\/","title":{"rendered":"BPO, SaaS and Cloud: Too many people aren’t seeing the bigger picture"},"content":{"rendered":"
\"\"<\/p>\n

Oh my… was that the traditional outsourcing model?<\/p>\n<\/div>\n

So there was a bit of Phil-bashing going on when\u00a0I dared to talk about <\/strong>“Cloud blowing up the traditional outsourcing model”<\/strong><\/a>.\u00a0 <\/strong><\/p>\n

I’ll agree that “blowing up” may have been a little strong of an adjective (but, hey, it made you all read the damned thing), and “shaking up” probably more appropriate.\u00a0\u00a0However, this doesn’t disguise the fact that too many technical folks fail to view the bigger picture when it comes to Cloud.<\/strong>\u00a0\u00a0<\/p>\n

At a tactical level, when you look solely at Cloud as a hardware-capacity solution, it’s hard to see beyond how it can impact businesses beyond creaking ITO-only deals.\u00a0 However, you really need to look at the convergence of BPO, SaaS and Cloud in a broader outsourcing context<\/em> to start to visualize how these three pillars of business delivery can – and are – coming together in a blended outsourcing model.\u00a0 Yes, it will take time (and I have called out a two-year time frame to see some real progress here), but it has to happen, and our recent “state of the industry” survey data <\/a>supports this.\u00a0\u00a0<\/p>\n

BPO provides labor arbitrage and the ability to personalize “standardized” solutions, SaaS provides the one-to-many process templates that underpin the BPO, and Cloud the delivery engine.\u00a0 Moreover, the virtualization that Cloud provides also adds a whole new dimension\u00a0of cost-arbitrage for clients – the arbitrage of inefficient hardware infrastructure, the\u00a0ludicrous wastage of energy costs (not to mention the impact on the environment), and the labor costs\u00a0to\u00a0maintain and support infrastructure that provides zero competitive advantage for organizations.\u00a0 The one anti-Cloud argument that keeps getting thrown out there is\u00a0centered on\u00a0data-security, but how this is really any different from those security\u00a0issues surrounding the\u00a0externalization of\u00a0 data in today’s outsourcing engagements, is beyond me.<\/p>\n

I completely agree that this “blowing up of the traditional outsourcing model”\u00a0is far more easily said than done, and we are seeing a huge resistance to this movement from\u00a0many IT professionals threatened by these trends, but the bigger picture doesn’t lie: company leaders\u00a0are constantly seeking new avenues of cost-elimination<\/em> and Cloud – combined in an outsourcing context – can provide that for many companies willing to embrace it.<\/p>\n

One other factor to consider is the push we’re seeing from the vendor-side.\u00a0 Yes, there’s tons of hype and fluff right now (that’s how the tech industry works), but the service providers, in particular, need to keep moving the needle to keep their margins high, and their clients’ productivity levels on a constant upswing.\u00a0 This relentless pursuit of cost-elimination is driving our world today, and the speed at which service providers need to keep sourcing new ways to help their\u00a0clients find new\u00a0thresholds of business effectiveness has never been stronger.\u00a0 Some providers will always remain content picking off low-end body-shopping work, but many are eyeing the bigger pie and will strive to make this outsourcing convergence a reality.<\/p>\n","protected":false},"excerpt":{"rendered":"

Oh my… was that the traditional outsourcing model? 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