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BPO Services in Brazil Go Beyond Cost-cutting Considerations Finds Frost & Sullivan - Business process outsourcing (BPO) in Brazil has picked up momentum in recent years, offering a compelling business case for companies hoping to reduce operating costs, enhance quality, and redeploy resources for core activities
BPO Services in Brazil Go Beyond Cost-cutting Considerations Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Buenos Aires, Argentina, 2009/02/10 - Business process outsourcing (BPO) in Brazil has picked up momentum in recent years, offering a compelling business case for companies hoping to reduce operating costs, enhance quality, and redeploy resources for core activities.

   
 
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To increase competitiveness, companies designate certain internal functions to third-party providers with the intention of cutting costs or enhancing quality, or both. These third-party providers leverage on their low-cost structures, process expertise, resources, and ability to scale to deliver these business benefits.

New analysis from Frost & Sullivan (ITservices.frost.com), Brazilian BPO End-user Study, reveals that 40 percent of the companies within the top 500 enterprises in Brazil have plans to hire some type of BPO service in 2009.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Brazilian BPO end-user study, then send an e-mail to Catalina Rossini, Corporate Communications, at catalina.rossini[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

"Customers today have a choice of BPO service providers and an array of outsourcing models to best suit their business needs," says Frost & Sullivan Industry Manager Marcelo Kawanami. "However, the BPO market is very divergent. It consists of many companies that have attained a level of process maturity and others, at the other end of the spectrum that are unaware of the potential within the outsourcing concept."

Multinational corporations have deployed the BPO service provision model following its adoption in their headquarters. On the other hand, there are top corporations located outside the south and southeast regions of Brazil remaining oblivious of the BPO service providers and the real value of the service.

Further, adoption levels in the region remain basic. Companies have not ventured into the complex BPO areas, and have restricted themselves to the basic services comprising contact center and human resource processes. Considered in the light of the global economic slowdown, BPO services offer end users the opportunity to leverage the advantages and procure complete, lucrative contracts.

Price is a major factor reining in market progression. As BPO services are perceived as expensive, initial hiring or extended contract plans are not considered feasible.

"Approximately 60 percent of the companies in Brazil do not have any current BPO services and have no plans to contract one in the near future, mainly due to cost concerns," says Kawanami. "The remaining 40 percent represents companies that do not perceive any value on BPO services or have information security issues in passing the activities to a third-party provider."

In the case of companies that have deployed BPO services and are willing to experiment further, quality of service is of primary importance and past experiences with the current provider will strongly impact the decision process. Flexibility of the provider will be another factor that influences customer choice of outsourcing providers.

"An interesting observation made was that certain companies have utilized some kind of BPO service but are unwilling to extend it to other processes," notes Kawanami. "This is attributed to the lack of confidence in the security provided in dealing with multiple or more advanced tasks."

Nonetheless, in a period of world economic crisis, companies will realize the importance of leveraging BPO services to gain more complex and complete contracts. Vendors must actively address end-user concerns to increase uptake. In addition, to move up the value chain, vendors can expand their repertoire to include high-end services such as equity research and analytics, CAD/CAM research and development, biotech, and pharmacy research.

Brazilian BPO End-user Study is part of the IT Services and Applications Growth Partnership Service program, which also includes research in the following markets: South African hosted IP services markets, Latin America managed security services markets, Latin America IT infrastructure outsourcing services markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Brazilian BPO End-user Study - N4BE

 
 
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BPO Services in Brazil Go Beyond Cost-cutting Considerations Finds Frost & Sullivan

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