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BPO: adding a proprietary software layer

Samad Masood | June 11, 2009
The modular service-oriented provision of BPO software and services is already a reality.

Asset-led BPO and cloud computing

The key point here is that the IT proposition from BPO vendors is shifting from a focus on platform efficiencies, through transition to a shared monolithic platform, to a focus on platform enhancement, through the addition of process-layer applications. More often than not, BPO vendors are looking for IT and process efficiencies in the shared use of this process layer, rather than aiming for IT efficiencies through a shared underlying platform.

What cant be ignored is that these BPO vendors are now increasingly developing reusable software assets, based on open-standard technologies. And many are well aware of the ramifications of this in the context of cloud computing. For example, in our discussions with Infosys, the company envisioned a future where IT infrastructure and applications are all delivered on a utility basis from the cloud, with the vendor differentiating on its process-layer applications. And Infosys isnt the only company with this view.

Indeed, the modular service-oriented provision of BPO software and services is already a reality. For example, UK-based insurance sector software and BPO vendor Innovation Group, which is also featured in the report, recently launched Innovation Insurer, a modular standards-based platform that clients can use to adopt BPO services on a utility basis.

Developments such as this prove to us that software and services convergence is a key evolutionary step in BPO provision, and a new battleground for both technology and services vendors alike.

Samad Masood is an analyst in Ovum's UK software and IT services practice, and specialises in IT services, outsourcing and offshore services.  

 

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