Next-Generation Solutions in Healthcare Payer BPO | Market Insights™
April 24, 2017
As the market reaches labor arbitrage maturity, buyers are increasingly looking to next-generation solutions to improve performance
As the market reaches labor arbitrage maturity, buyers are increasingly looking to next-generation solutions to improve performance
Maps enterprises’ technology investment priorities along two axes: priority and impact timing
Big Data and Analytics Services in Global Insurance PEAK Matrix Assessment 2016
Big Data & Analytics Services in Global Banking – Service Provider Landscape with PEAK Matrix™ Assessment 2016: Rush For The New Gold
Despite macroeconomic uncertainties and reduced investor confidence, global sourcing industry witnesses stable growth in 2016
The global sourcing industry has experienced a surge in setup activity in onshore locations, according to Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing. The proportion of onshore versus offshore delivery centers jumped from 45 percent in 2014 to 52 percent for the period of 2015-H1 2016.
Onshore setup activity increased among the top 20 service providers, with North America’s share surpassing 2012 levels after experiencing significant declines in 2013 and 2014 due to a global slowdown. North America is the most favored onshore location followed by Continental Europe.
According to Everest Group, the factors contributing to this rise in onshoring include:
Overall, the global services market grew at a rate of 8-10 percent in 2015, reaching US$161-166 billion, a slight slowdown compared to the 9-11 percent growth rate of 2014.
“We expect that the global services market growth will be lower in 2016—likely 7-9 percent—due to the overall macroeconomic slowdown, currency fluctuations and volatility in equity and investment markets,” said Anurag Srivastava, vice president and director of the Global Sourcing practice at Everest Group. “Political instability associated with Brexit in the United Kingdom and the Trump presidency in the United States will continue to affect the growth rate as well.”
Global technology spending remained flat in 2015, a statistic that obscures the impact that new technologies are having on the industry.
“Going forward, countries such as India are expected to witness a slowdown in the growth of IT services exports, although digital services will continue to grow at a fast pace,” added Srivastava. “Analytics will be one of the key contributors of growth in the BPS segment; conversely, adoption of technologies such as automation will result in a decline in contract sizes and revenue growth.”
These findings and more are discussed in Everest Group’s recently published report “Global Locations Annual Report 2016: Persistent Growth in Uncertain Times.” This research offers insights into the size and growth of the global services market, global services exports by regions and country, an update of locations activity by region and country, and trends affecting global locations (changes in investment environment and exposure to various risks). It also provides industry-leading comparison and analysis of key changes in maturity, arbitrage and potential of global delivery locations through Everest Group’s unique MAP Matrix™ analysis.
Other Key Findings
Digital services deals by segment, 2016
Thursday, November 10 | 11 a.m. – 12 p.m. ET
Vice President of BPS Megan Weis and Senior Analyst Vatsal Gupta will be co-presenters at a November 10 webinar titled Procurement Analytics 3.0 – Leveraging Technology for Greater Business Outcomes. Paul Blake, Senior Manager of Product Marketing at GEP will also be a lead presenter during the webinar.
To thrive in today’s complex world, buyers of global outsourcing services are looking to their providers for next-generation models which not only lower cost, but leverage new tools and technologies to drive better business outcomes. In procurement, this next-generation model is squarely focused on analytics.
For many enterprises, procurement analytics begins – and ends – with spend analysis. Best-in-class procurement teams, however, are leveraging innovative analytics techniques and technology – in new areas – to drive greater value across their source-to-pay (S2P) processes. How can your procurement team do the same? In this session, experts from Everest Group and GEP will discuss how procurement organizations can apply next-gen analytics tools across S2P processes to improve their team’s overall reach and impact on the enterprise. They will also share key levers and best practices to help you successfully operationalize advanced procurement analytics.
Presenters
A critical factor behind the Wells Fargo fiasco was the incentivizing of employees based on their ability to achieve their sales targets by cross-selling products. While this is the easiest and lowest cost model for defining and measuring sales team performance, it can lead to fraud if left unchecked. In Wells Fargo’s case, over 5,300 employees were fired for fraud that occurred across multiple years and led to the exit of CEO John Stumpf.
The scandal raises serious questions. Did Wells Fargo not have the data and analytics tools needed to identify fraud that had been going on for so long? Did the bank’s processes not have a channel to capture customer feedback on transactions to raise a flag for the fraudulent activity? Can we create employee performance measures other than sales targets?
To answer these questions, I believe banks need to go back to services marketing basics 101:
If Wells Fargo had measured the cost of acquisition per customer and had the ability to drill down at the sales representative level, it would have realized that the 5,300 fired employees had unbelievably low cost of customer acquisition for the sales they made over the years – meaning they were doing amazing, or fraudulent, work. Whichever the case, the bank would need to explore further.
These days, measuring customer satisfaction after every transaction is the norm in many industries. After every call I make using Skype, the application asks me to rate my experience. The same is true for every Uber ride I take, and each time I book a flight online.
Can’t banks do this? I believe they can. It makes sense for multiple reasons:
While there are many more reasons why measuring customer satisfaction is valuable for banks and customers alike, let’s dive a little deeper into the idea of using it to measure sales team performance.
Banks can use the customer satisfaction measuring mechanism to capture feedback that enables measurement of the effectiveness and value added by the sales team member across the customer lifetime journey, from being on-boarded to systems to purchasing products to retiring products.
By embracing a customer-centric design philosophy for all its internal processes (not just for its products and services), including performance appraisals of all employees, with every KPI being linked to customer satisfaction, banks will be able to create a consumer-centric enterprise.
True that Wells Fargo’s case has made the idea of cross-selling a villain. But we must realize that its debacle was also caused by other more pressing issues such as top management failure to respond to the matter in time, lack of data and analytics solutions to identify fraudulent transactions, and the organization culture that promoted unethical behavior.
FinTech players in the market are looking to disrupt traditional financial services players by leveraging technology and designing for customers. However, they face challenges in terms of gaining customer trust and loyalty while building scale. Traditional banks boast of having scale and years of customer trust. But, we are witnessing erosion of that trust. While financial services enterprises are investing heavily to embrace the wave of digital disruption from FinTechs, they need to ensure while they pursue this strategy they continue to protect their competitive advantage of years of customer trust.
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