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Infosys to integrate IT & BPO operations to cut costs, add value
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Infosys to integrate IT & BPO operations to cut costs, add value
Infosys Technologies is looking at ways of increasing synergies with its BPO arm. In addition to easier movement of executives between the IT and BPO arms, the tech bellweather is also working on integrationand business plans to maximise profits.
The knowledge services business unit of Infosys BPO is headed by a former Infosys Technologies executive. So is the vice-president and head of sales of Infosys BPO.Communication, the second-largest revenue earning customer segment for the BPO, is also headed by an executive formerly with Infosys Technologies.
But the real push for synergies between the IT and BPO businesses is due to business slowdown and pressure from customers to get more value for the same cost. The BPO arm is now jointly working on solutions, platform-based BPO and on transformation initiatives with the technology arm. Compared to plain-vanilla BPO services, where pricing is based on the number of seats per hour, these solutions are linked to outcomes and number of transactions.
For instance, Finacle, the core banking product of Infosys, is now offered by the BPO arm as a ‘bank-in-a-box’ solution, where services such as opening a customer account or linking two customer accounts are provided by the BPO.
“Customers are given both options — they can opt for the product or the solution. In any case, many product companies are also moving from a licence fee-based model to a services-based model,” said Ritesh Idnani, member of the executive council of Infosys BPO. Similarly, the BPO and the technology arm have jointly developed a solution for the media industry called, ‘newspaper-in-a-box’.
“Our strategy is, if we can integrate technology and BPO, there is a big opportunity,” said Gopal Devanahalli, vice-president, who heads the business unit focussed on communication service providers. While most telecom providers have outsourcedcustomer services and, to some extent, areas such as finance and accounting and human resources, Infosys BPO believes real profits are to be made from areas that directly impact the cost of revenues.
These areas also require greater technology intervention and involve services such as fulfilment, assurance and billing. Each BPO business unit is also now setting up a transformation cell, which co-ordinates with both the BPO and technology arms, to come up with ways that can result in gain for both the client and the company.
Source:
http://economictimes.indiatimes.com/Infotech/Infosys_to_integrate_IT_amp_BPO_ops
The knowledge services business unit of Infosys BPO is headed by a former Infosys Technologies executive. So is the vice-president and head of sales of Infosys BPO.Communication, the second-largest revenue earning customer segment for the BPO, is also headed by an executive formerly with Infosys Technologies.
But the real push for synergies between the IT and BPO businesses is due to business slowdown and pressure from customers to get more value for the same cost. The BPO arm is now jointly working on solutions, platform-based BPO and on transformation initiatives with the technology arm. Compared to plain-vanilla BPO services, where pricing is based on the number of seats per hour, these solutions are linked to outcomes and number of transactions.
For instance, Finacle, the core banking product of Infosys, is now offered by the BPO arm as a ‘bank-in-a-box’ solution, where services such as opening a customer account or linking two customer accounts are provided by the BPO.
“Customers are given both options — they can opt for the product or the solution. In any case, many product companies are also moving from a licence fee-based model to a services-based model,” said Ritesh Idnani, member of the executive council of Infosys BPO. Similarly, the BPO and the technology arm have jointly developed a solution for the media industry called, ‘newspaper-in-a-box’.
“Our strategy is, if we can integrate technology and BPO, there is a big opportunity,” said Gopal Devanahalli, vice-president, who heads the business unit focussed on communication service providers. While most telecom providers have outsourcedcustomer services and, to some extent, areas such as finance and accounting and human resources, Infosys BPO believes real profits are to be made from areas that directly impact the cost of revenues.
These areas also require greater technology intervention and involve services such as fulfilment, assurance and billing. Each BPO business unit is also now setting up a transformation cell, which co-ordinates with both the BPO and technology arms, to come up with ways that can result in gain for both the client and the company.
Source:
http://economictimes.indiatimes.com/Infotech/Infosys_to_integrate_IT_amp_BPO_ops
