June 26, 2006

SOA Will Shape The Future Of BPO Delivery

by Bill Martorelli

with Tom Pohlmann, John C. McCarthy, Katherine Brown

Executive Summary (This is a document excerpt)

With large recent awards in hand and full supplier pipelines, the business process outsourcing (BPO) market is poised for significant growth. But BPO delivery remains a complex undertaking in a constant state of evolution. The principal reason for this complexity is the often fractured relationship between BPO and the applications platforms that underlie it. Customers do not always consider the suitability of applications assets as a foundation for BPO delivery — a mismatch that can lead to high costs for customers and unprofitable BPO operations for suppliers, threatening not only the success of individual BPO engagements but also continued vendor viability in the BPO segment. A number of factors, most notably an increased use of service-oriented architecture (SOA) by suppliers, will resolve this split. But for the immediate future, buyers of BPO must take a more holistic approach to BPO decision-making, changing a model where responsibility for business process and application are often split.

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