TODAY’S SOLUTION

& TOMORROW’S PROBLEM

the BPO risk management puzzle

a risk analysis
& options for risk mitigation
louie cunanan ∞ simina petraru ∞ fethi sadouki ∞ valbona shytaj ∞ yuan zhong
⏏

:agenda

01 introduction

02 short-term & long-term risks

03 improvement areas for mitigating risks

04 conclusion

05 q&a
01 02 03 04 05

:introduction

★ vendor-client relationship
the
“marriage
metaphor”


★ exploiting ‘advantages’ to mitigate risks

★ the fight for competitive advantage


a
means
to
protect
core
competencies
&
long­term
pro4it
★ total value-based perspective
vs.
cost­driven
perspective

01 02 03 04 05

:short-term risks

lower morale & productivity★ employee
ef4iciency
amidst
in4lux
of


projects
due
to
low
morale
or
feeling

“displaced”


leakage & security★ knowledge
&
know­how


the
cost
of
tight
security
&
communication

protocols
01 02 03 04 05

:long-term risks

core (in)competence★ identifying
what’s
really
“strategic”


oversight
of
long­term
pro4itability


diminished innovation★ trade­off
risk:

too
much
reliance
on
vendor


diminishes
innovation
capabilities


mechanisms
for
knowledge
transfer
01 02 03 04 05

:improvement areas

vendor’s advantage★ economies
of
scale
&
become
an
integral
component


of
client’s
business


leverage
on
transfer
of
knowledge
&
culture
to

facilitate
&
help
meet
client’s
business
objective


client preferences★ focusing
on
core
competence
using
value
creation


innovative
approach
to
go
beyond
mere
ef4iciencies
&

enhancements
to
business
functions

01 02 03 04 05

:conclusion

BPO has to be best-fit★ turn
‘marriage
metaphor’
to
be
mutually


bene4icial


transformational approach★ look
at
things
innovatively


how
to
make
things
better
and
better?


total-value perspective ★ value­creation


long­term
pro4itability

protecting
core
competence
&
strategic

business
functions
01 02 03 04 05

:q&a

★ merci beaucoup!