One industry has charted its own course this year amid this sea of change. The Information Technology and Business Process Management industry or IT-BPM has thrived in the last 20 years to become one of the country’s primary economic drivers with more than one million full-time employees (FTE) and more than $22 billion in revenue as of 2015. The industry is on track to meet its 2016 goal of 1.3 million direct employees and $25 billion in revenue.
However, the IT-BPM industry continues to face dramatic changes and opportunities happening in the BPO industry internationally and locally.
Internationally, the changes and opportunities can be grouped into megatrends. The Shared Services & Outsourcing Network’s (SSON) 2016 Mega Trends report identified five megatrends, or five strategies, that shared service centers (SSCs) globally are adopting to varying degrees: (1) delivery of dramatic value beyond cost savings, (2) employment of eight key ‘value-driver’ strategies, (3) skillset development supporting value-adding services, (4) use of data analytics (transforming data into useful information for decision making), and (5) emergence of Robotic Process Automation (RPA).
What interests me in particular are the eight key value-drivers that SSCs are implementing: (1) data analytics, (2) digital disruption, (3) global business services, (4) global talent management & work force planning, (5) organizational redesign, (6) operational agility, (7) process excellence, and (8) RPA.
In my work with various SSC clients, I found that SSCs that have applied at least half of these value-drivers have experienced tremendous benefits in terms of efficiency, effectiveness and cost savings.
What I also noticed is that these megatrends similarly reflect the results that came out in Shared Services: Multiplying Success (PwC’s 2016 global biennial survey of the global shared services industry), where a total of 75 companies from various industries in more than 20 countries representing 300 SSCs participated. What the PwC survey showed is that shared service business models have to continuously improve to respond to global economic and political trends and social changes.
The survey revealed that SSCs are still key drivers for increasing efficiency and lowering costs for organizations. Companies have tasked their SSCs to increase their levels of efficiency and continuously improve effectiveness. This is because full efficiency has not been achieved and there is still room to improve.
Similarly, Quality and Continuous Improvement programs have been widely adopted in SSCs but their full benefits are still to be realized. In spite of this, companies that have implemented Continuous Improvement Process (CIP) have seen significant process improvements and cost reductions.
Companies are now implementing a multifunctional service strategy. This means that SSCs are changing or transforming themselves into multifunctional service centers that operate with global focus rather than just the traditional Single Tower concept (or SSCs with only a single function). Organizations are expanding their process scope, consolidating their functions geographically to bring them into one operational framework.
Improved corporate governance and controls are areas where SSCs have contributed immensely to their organizations as regulatory requirements and reporting have increased in complexity and in frequency.
Another insight from the survey is that technology has been one of the major drivers in the success of SSCs. SSC centers globally are investing in new and upcoming technologies. RPA, predictive analytics, cognitive platforms, and smart contracts are being developed to improve the performance, efficiency, and effectiveness of SSCs. Even the skills of shared services employees are becoming more integrated. A new generation of ‘digital natives’ or the ‘millennial’ employees is starting to dominate the SSC workplace.
So how are these international developments affecting the Philippines IT-BPM industry? The short answer is -- a lot.
In the Philippines, the IT and Business Process Association of the Philippines or IBPAP has supported the growth of the IT-BPM industry since 2004. On Oct. 28, IBPAP will be presenting its 2022 road map during its 2016 International IT-BPM Summit. According to IBPAP CEO Benedict Hernandez, just like the 2010 and 2016 road maps, the 2022 road map is a comprehensive plan that will propel the industry to the next level and address pressing concerns regarding talent, next-wave cities development, private and government support, academe support, and emerging technology trends.
What is unique about this road map is the inclusion of the detailed visions, plans and targets of the six associations or verticals that comprise IBPAP. These are the Animation Council of the Philippines, Inc. (ACPI), Contact Center Association of the Philippines (CCAP), Game Developers Association of the Philippines (GDAP), Global In-house Centers Council (GICC), Healthcare Information Management Association of the Philippines (HIMAP), and Philippine Software Industry Association (PSIA).
I am very interested to know how IBPAP plans to penetrate and take advantage of the full potentials in health care, gaming, software development, animation, and multimedia.
Now, with all the detailed plans for the IT-BPM industry, it would be easy to forget that the 2022 road map also addresses the emerging developments in the global offshoring industry.
The road map indicates that IBPAP and its members are aware that SSCs located in other territories are transforming their operations to be more relevant and integrated into their global operations. This means that Philippine-based SSCs must also transform and make their operations an integral part of the company’s business operations and strategic business decision-making process.
Fortunately for the Philippines, I see locally based SSCs already transforming their operations to be more efficient and effective with the goal of being the “knowledge center” of their company’s global operations.
I believe the IT-BPM industry will continue to thrive and take advantage of the current environment of change just as it has done in the past 20 years. I still see the Philippines as one of the top destinations for companies to set up their SSCs.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The firm will not accept any liability arising from the article.
Victor Ona is a senior manager belonging to the Management Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845 2728 ext. 3236
victor.gabriel.ona@ph.pwc.com
However, the IT-BPM industry continues to face dramatic changes and opportunities happening in the BPO industry internationally and locally.
Internationally, the changes and opportunities can be grouped into megatrends. The Shared Services & Outsourcing Network’s (SSON) 2016 Mega Trends report identified five megatrends, or five strategies, that shared service centers (SSCs) globally are adopting to varying degrees: (1) delivery of dramatic value beyond cost savings, (2) employment of eight key ‘value-driver’ strategies, (3) skillset development supporting value-adding services, (4) use of data analytics (transforming data into useful information for decision making), and (5) emergence of Robotic Process Automation (RPA).
What interests me in particular are the eight key value-drivers that SSCs are implementing: (1) data analytics, (2) digital disruption, (3) global business services, (4) global talent management & work force planning, (5) organizational redesign, (6) operational agility, (7) process excellence, and (8) RPA.
In my work with various SSC clients, I found that SSCs that have applied at least half of these value-drivers have experienced tremendous benefits in terms of efficiency, effectiveness and cost savings.
What I also noticed is that these megatrends similarly reflect the results that came out in Shared Services: Multiplying Success (PwC’s 2016 global biennial survey of the global shared services industry), where a total of 75 companies from various industries in more than 20 countries representing 300 SSCs participated. What the PwC survey showed is that shared service business models have to continuously improve to respond to global economic and political trends and social changes.
The survey revealed that SSCs are still key drivers for increasing efficiency and lowering costs for organizations. Companies have tasked their SSCs to increase their levels of efficiency and continuously improve effectiveness. This is because full efficiency has not been achieved and there is still room to improve.
Similarly, Quality and Continuous Improvement programs have been widely adopted in SSCs but their full benefits are still to be realized. In spite of this, companies that have implemented Continuous Improvement Process (CIP) have seen significant process improvements and cost reductions.
Companies are now implementing a multifunctional service strategy. This means that SSCs are changing or transforming themselves into multifunctional service centers that operate with global focus rather than just the traditional Single Tower concept (or SSCs with only a single function). Organizations are expanding their process scope, consolidating their functions geographically to bring them into one operational framework.
Improved corporate governance and controls are areas where SSCs have contributed immensely to their organizations as regulatory requirements and reporting have increased in complexity and in frequency.
Another insight from the survey is that technology has been one of the major drivers in the success of SSCs. SSC centers globally are investing in new and upcoming technologies. RPA, predictive analytics, cognitive platforms, and smart contracts are being developed to improve the performance, efficiency, and effectiveness of SSCs. Even the skills of shared services employees are becoming more integrated. A new generation of ‘digital natives’ or the ‘millennial’ employees is starting to dominate the SSC workplace.
So how are these international developments affecting the Philippines IT-BPM industry? The short answer is -- a lot.
In the Philippines, the IT and Business Process Association of the Philippines or IBPAP has supported the growth of the IT-BPM industry since 2004. On Oct. 28, IBPAP will be presenting its 2022 road map during its 2016 International IT-BPM Summit. According to IBPAP CEO Benedict Hernandez, just like the 2010 and 2016 road maps, the 2022 road map is a comprehensive plan that will propel the industry to the next level and address pressing concerns regarding talent, next-wave cities development, private and government support, academe support, and emerging technology trends.
What is unique about this road map is the inclusion of the detailed visions, plans and targets of the six associations or verticals that comprise IBPAP. These are the Animation Council of the Philippines, Inc. (ACPI), Contact Center Association of the Philippines (CCAP), Game Developers Association of the Philippines (GDAP), Global In-house Centers Council (GICC), Healthcare Information Management Association of the Philippines (HIMAP), and Philippine Software Industry Association (PSIA).
I am very interested to know how IBPAP plans to penetrate and take advantage of the full potentials in health care, gaming, software development, animation, and multimedia.
Now, with all the detailed plans for the IT-BPM industry, it would be easy to forget that the 2022 road map also addresses the emerging developments in the global offshoring industry.
The road map indicates that IBPAP and its members are aware that SSCs located in other territories are transforming their operations to be more relevant and integrated into their global operations. This means that Philippine-based SSCs must also transform and make their operations an integral part of the company’s business operations and strategic business decision-making process.
Fortunately for the Philippines, I see locally based SSCs already transforming their operations to be more efficient and effective with the goal of being the “knowledge center” of their company’s global operations.
I believe the IT-BPM industry will continue to thrive and take advantage of the current environment of change just as it has done in the past 20 years. I still see the Philippines as one of the top destinations for companies to set up their SSCs.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The firm will not accept any liability arising from the article.
Victor Ona is a senior manager belonging to the Management Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.
+63 (2) 845 2728 ext. 3236
victor.gabriel.ona@ph.pwc.com
source: Businessworld
No comments:
Post a Comment