BPO puts pressure on IT

The rapid rise of business process outsourcing is putting increasing amount of pressure on the business processes and technology infrastructures.

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By  Matthew Southwell Published  February 17, 2004

The rapid rise of business process outsourcing is putting increasing amount of pressure on the business processes and technology infrastructures of many end user organisations, especially in the human resources (HR) and finance and accounting (F&A) services markets. According to IDC, this means new people are taking responsibility for purchasing within companies and applying new selection criteria. As a result, the analyst house says vendors have to redesign their solutions to compete for customer contracts. “IDC predicts that the outsourced transaction processing and administration services supporting HR and F&A will become more closely aligned and ultimately converge in the coming three- to five-year period,” says Marc Pramuk, programme manager for IDC's HR management & staffing services research. Concurrent to this shift is a greater demand for tangible results as users look for proof that BPO is providing the cost savings it promises. As a result, tools such as scorecards are beginning to gain in popularity and users beginning to demand even more functionality from them. “We believe HR scorecarding and measurement tools – along with more comprehensive individual and organizational performance management – will become pervasive needs within organisations,” says Pramuk.

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