I’ve been predicting for a couple of years that the worlds of business process outsourcing (BPO) and Software-as-a-Service (SaaS) would converge. In fact, you can also add managed services to the mix.

The reason for this prediction is that the BPO companies, especially the offshore companies, can no longer sustain their labor-intensive business models. Competition for skilled labor is intensifying, driving up operating costs and creating service continuity issues as workers jump between firms.

In response, the BPO companies must shift their operations from a labor-centric to a software enabled model. SaaS represents a natural solution for this business challenge. The BPOs will use SaaS to automate their existing processes and services, to expand their service portfolios, and to extend the reach of their operations.

The BPOs will use managed services to do the same in the IT infrastructure management arena.

The clearest example … Read More »