Process Factories: Now That's What I Call BPO

Abstract

This document describes the concept of the process factory, a form of BPO delivery that allows the supplier to control the operation of the process, the location of the process, and the software platform (or at least effect any required changes to this software platform), as well as standardize the process and its constituent elements, use the same assets to service multiple clients, and use repeatable and scalable non-human assets (such as software packages or process models to supplement and/or replace human labor). In most contracts, the process factory is more an ideal than a ground-level reality, but the process factory remains a valid aspiration for the BPO industry.

The document describes the drivers and benefits of process factories, and discusses the shift in client and supplier sentiment towards more gradual and continuous transformation of both business processes and the underlying technologies that support them. It also makes recommendations for suppliers. "BPO is maturing and becoming more industrialized. It is not just learning from the experience of more mature industries, including manufacturing and financial services, and borrowing tools and techniques from them," said Douglas Hayward, research manager, European IT Services. "The future of BPO delivery is about applying industrial engineering methods to white-collar business processes, driving steady but continuous change."