I concluded my March 2013 report on the role of software assets in business innovation by proposing that “The combination of software assets, strong domain expertise, analytics, and as-a-service delivery models will increasingly allow traditional service providers to reinvent the way they deliver business value to their clients.” I was glad to hear that IBM recently announced a deal with L’Oréal that directly supports this position. The announced engagement actually includes all these components:
The procurement domain expertise of IBM Global Business Services addresses business pain points. L’Oréal USA grew rapidly over the past few years via an aggressive acquisition strategy that caused indirect procurement processes to remain highly disparate. The company knew that there was a significant gap between negotiated savings and realized savings in its indirect procurement operations. IBM GBS consultants brought strong procurement expertise to work with L’Oréal’s existing sourcing team to transform existing processes. IBM Global Process Services (GPS) category experts are working with L’Oréal to develop and implement category sourcing strategies.
I attended a Xerox analyst event last week in Grenoble, France, and was very impressed with both the setting and what I heard. Xerox is much more than the verb it was once associated with, and office workers no longer set off to get something “xeroxed.” As the CEO said in a recent interview, the younger generation doesn’t know Xerox as a verb. I mentioned having read this to a fellow analyst at lunch the first day of the event, and she looked at me quizzically. She didn’t know what it meant to “xerox” something. Indeed, there is hope for Xerox to recast itself as much more than a copier. However, there remains work to be done.
Late last week, ExlServices acquired PDMA, Inc., maker of the LifePRO Insurance Policy Administration System. In his discussions with Forrester, Yogendra Goyal, VP & Global Head - Insurance Practice, was very clear on how the deal will help theBPO provider. He said the LifePRO platform will enable the company to move to a more sophisticated outcome pricing model as well as enable it to to cut costs and drive higher value and up the process stack. It's another clear example of how the BPO market is moving to have a standard software platform underpin its process work (see my report Platform BPO: Process Outsourcers Take A New Approach To Traditional BPO for more information).