Supporting the Launch of a New Service Offering

Executive Summary

After achieving proven success with a technology solution to drive efficiencies and effectiveness in its own operations, a leading business process outsourcing (BPO) service provider was keen to offer the service to the marketplace. It engaged Everest Group to validate the concept, help build the business case, design a compelling offering, and craft a go-to-market approach. Everest Group’s comprehensive understanding of the IT infrastructure outsourcing market and competitive landscape, and detailed benchmarks/data enabled the provider to successfully bring the solution to market.

The Client’s Challenge

The client, a leading offshore BPO service provider with a substantial presence in industry verticals including telecommunications, banking, financial services and insurance, and healthcare, had made significant investments in process management technology and tools that reaped considerable internal process efficiencies and operational value. Given the internal success, the technology team, led by an entrepreneurial executive, was eager to monetize the capability by taking it to market. The team had a deep understanding of the technology and emerging trends in the space, but had gaps in its knowledge of current trends in the IT outsourcing (ITO) market, especially in the IT infrastructure space. Thus, the client turned to Everest Group for expert assistance in gaining a complete view of the market, shaping and validating the technology proposition and business case, and defining the go-to-market strategy for this new business opportunity.

Insight to Action

Everest Group initiated a comprehensive array of activities to help the client shape the opportunity and bring the solution to market:

• Conducted deep and detailed research on IT infrastructure outsourcing trends (across deal scope/size, buying trends, traditional and remote infrastructure management, etc.)
• Provided insights and inputs from its in-the-market experience regarding how buyers outsource and what drives decision making
• Conducted benchmarks on pricing, deal scope, and current market offerings
• Gained input from potential customers across segments
• Delivered perspectives on service provider approaches to similar offerings and go-to-market strategies

These initiatives helped guide the service provider through critical preparation and pre-launch stages. Specifically, Everest Group worked with the client to: 1) detail the business case for the offering by benchmarking it to similar services, including an assessment of target cost and price levels; 2) develop potential bundling options and soft test the proposition to validate acceptability and interest; 3) identify specific target opportunities, including gaps in the market, target verticals, and likely customer segmentation; and 4) develop a go-to-market approach with marketing, timing and investments (assets and people). Finally, Everest Group helped communicate the potential of this new opportunity to the client’s Board in order to secure buy-in and approval to pursue the initiative.

Impact

Per creation and delivery of a business case that established a sound rationale for the required initial investments, the Board approved the proposal to move forward. The client successfully launched the offering, including setting up a separate IT subsidiary to operate the business, and attracting superior talent for the sales and marketing teams. Initial customers and prospects are responding very positively to the offering. Progress toward an aspiration to grow the business to be more than 15 percent of the client’s total revenue within four years is encouraging, as early customer wins have demonstrated a compelling proposition and have established market momentum.