FAO Contract Terminations Stabilizing | Market Insights™
January 30, 2017
FAO contract terminations stabilizing
FAO contract terminations stabilizing
Typical price variation: LPO, CCO, and FAO services
As outsourcing markets mature, traditional cost levers become increasingly less effective, driving enterprises to seek alternative sources of cost savings. RPA is filling that void, promising a new wave of cost savings, particularly in FAO’s transactional and FTE-intensive processes.
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6 ways FAO’s changing value proposition is impacting contracting structure: technology, analytics, processes, geography, location, pricing
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Market maturation is changing the FAO landscape
BPO segments that require deeper IP/domain knowledge and/or technology-embedded solutions are less prone to commoditization
As R2R BPO expands to include more judgment-oriented components, single-component pricing models, such as input- and output-based, are giving way to multi-component or hybrid pricing structures
As the share of multi-process R2R BPO contracts increases, there is corresponding growth in outsourcing of judgment-oriented processes
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