Outsourcing Achieving high performance through tailored outsourcing solutions from Custom BPO Services
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1 Outsourcing Achieving high performance through tailored outsourcing solutions from Custom BPO Services
2 Accenture Custom BPO Services provides a broad spectrum of tailored services designed to address the unique needs of a client organization. For businesses facing the challenges of the current economic climate, a customized business processing outsourcing (BPO) solution can be the right answer, helping them transform their processes to deliver high performance at lower costs. Outsourcing provides solutions for a wide range of business challenges made more exigent by the current economic climate. In situations where a customized solution would meet a company s needs more closely than one of Accenture s standard outsourcing offerings, Accenture Custom BPO Services collaborates closely with its clients to create new ways of servicing a market or performing a specific business process. Accenture helps clients achieve high performance through outsourcing services designed specifically to meet their particular business challenges and individual cost-management needs. 2
3 Opinions differ on the likely depth and duration of the economic downturn currently gripping global companies and markets. But no one disputes that we are in challenging economic environment that shows few signs of improvement in the near term. GettyImage AUD$660 Capital is scarce; sharp cutbacks in consumer and corporate spending are occurring; demand for products and services is decreasing, putting pressure on prices and margins; changes in the competitive landscape present the threat of acquisition, while creating opportunities for the strong to achieve high performance. 3
4 In today s economic environment, more than ever companies are looking to outsource their back-office functions to provide a direct and immediate response to their business challenges. Accenture Custom BPO Services is currently working with over 100 clients to develop client-specific solutions that improve cash flow, achieve sustained cost management, and strengthen their competitive position by driving new business growth. Why Custom BPO? Accenture s High Performance Business research has found that companies are increasingly searching for more sophisticated ways to address industry and business challenges that go beyond cost savings and help them achieve improvements in both efficiency and productivity. They are looking beyond traditional outsourcing solutions (like IT, HR, and finance) to deliver cost savings and operational excellence while also improving customer service. Accenture Custom BPO Services brings the very best of Accenture s standard offerings and global industry and cross-industry experience to provide a trusted solution that meets our clients unique business challenges, and cost management needs. Subsequently many of Accenture s standard industry-specific and cross-industry offerings originated from innovative, custom BPO relationships. Accenture Custom BPO Services can help clients achieve high performance, even in a down turned global economic environment, through operational efficiencies and improved organizational effectiveness to: Improve cash flow and liquidity Achieve immediate and sustained cost management See results faster Position for growth - Quickly establish and operate new functions - Design, build and run new business operations - Transform existing processes 4
5 Figure 1. The Accenture Global Delivery Network Toronto area Montreal Chicago Cincinnati Wilmington San Antonio (2) Atlanta Monterrey Houston Mexico City Prague London Almere Riga Warsaw Nantes Brno Bratislava Madrid Bucharest Naples Malaga Casablanca Mumbai (3) Pune Bangalore (5) Delhi area (2) Hyderabad Chennai Dalian Shanghai Guangzhou Manila (8) Cebu Rosario Sao Paulo Buenos Aires Port Louis, Mauritius IT Center* BPO Center IT & BPO Center * IT Centers includes technology and IT outsourcing (application outsourcing and infrastructure outsourcing) Why Accenture? Accenture has deep outsourcing experience, industry knowledge, and a global delivery network. Almost two decades of experience in outsourcing Serves more than 30 industries and 100 countries Over 650 outsourcing clients More than 85,000 people focused on outsourcing Accenture Global Delivery Network of over 50 centers in more than 40 cities (see figure 1) 21 languages supported for BPO 24/7 operations Trained over 6,100 delivery professionals in our Operational Excellence practices Why Accenture Custom BPO Services? Accenture Custom BPO Services is an established global practice. More than 100 Accenture Custom BPO Services clients Experience across all industries Over 95 new contracts signed in fiscal 2008 Over 15 new clients added to our portfolio in fiscal 2008 More than 3,100 dedicated personnel working in more than 25 countries across five continents For the second consecutive year, Accenture ranked No.1 on the World s 100 Best Outsourcing Providers Named for 2009 by the International Association of Outsourcing Professionals (IAOP). 5
6 Scope of Accenture Custom BPO Services Accenture Custom BPO Services provides a broad spectrum of customized outsourcing services, allowing clients to outsource a discrete activity, or an entire business process or activity across multiple functions. Examples of the tailored outsourcing services we provide our clients include: Warranty management services Accenture is helping major companies move toward achieving high performance by developing an end-to-end warranty management strategy, and reengineering their warranty management processes and technologies. Sales fulfilment/ order management services Accenture is providing process standardization, enabling technologies, organizational transformation, monitoring, and reporting to ensure world-class order management processes. Document management services Accenture designs customized solutions to help companies transform paper and electronic forms and documents into accurate, valuable data that can be stored and quickly accessed. The benefits include lower total cost of ownership and improved functionality and service levels. Public service (government) processing Accenture is a trusted partner helping governments transform themselves to improve business outcomes through customized solutions such as citizen transaction services and back-office processing. Communications/ porting and provisioning services Accenture provides communications service providers with electronic bonding and order provisioning services for their trading partners, using a single comprehensive interface that shields the client from learning and implementing trading partnerspecific integration knowledge and requirements. Supply chain services Accenture has developed a suite of powerful supply chain execution assets to help our clients find and forge their own path to high performance. Accenture explores how market leaders are building supply chains that are information-rich, highly flexible, and built around customer needs. Engineering services Accenture enables companies to outsource various aspects of product development and engineering from discrete activities to the entire product development process at high quality and lower cost. This offers companies substantial opportunities to reduce the time and cost of bringing new products to market, allowing the engineering operation to focus capacity on core differentiators. Customer contact services Accenture teams with companies to provides an integrated suite of scalable, "front-office," marketing, sales, and customer outsourcing services. We help leading companies transform their customer contact operations, improve the customer experience, and enhance customer loyalty, retention and satisfaction while lowering operating costs and capital expenditure. Other Custom BPO services include: Marketing services Mortgage services Back-office services 6
7 Accenture's High Performance Business research initiative has found that a distinctive trait of a high-performance business is the ability to respond to a economic downturn proactively in order to improve their competitive position. While many companies must focus on short-term, bread and butter survival issues, high-performance businesses also engage the longer-term challenges of positioning for competitive advantage and organic or acquisition-led growth. Accenture Custom BPO Services can help clients achieve both the short and long-term goals that will enable them to become high-performance businesses. Client case studies demonstrate how Accenture Custom BPO Services delivers fast results that enable our clients to achieve high performance. 7
8 Microsoft Microsoft s Europe Middle East Africa region (EMEA) Operations Center in Dublin manages the end-to-end operational activities for its customers and channel partners across the region. The EMEA Operations Center processes over 5.5 million orders each year and ships over 26 million units to 120 countries across the region. The Operations Center needed to supply a consistent managed service to support its growing business. In addition, it wanted to improve the quality of service that it provided to its customers and partners, as well as its overall cost effectiveness. Accenture is delivering key operational activities for Microsoft s Volume Licensing and Commercial Services businesses Microsoft s biggest revenue earner in the multi-billion dollar EMEA region including: Contract, agreement, and order processing for volume licensing Order management and billing for commercial services Rebate and channel incentive payment processing Customer care for all operational and tools-related queries These services are provided in six languages in support of all relevant sales locations and time zones by a team of approximately 180 Accenture staff from Microsoft s EMEA operations center in Dublin. Accenture also helped implement a forecasting and capacity planning process, enabling Microsoft to rampup staff to support peaks in business volumes and related customer queries. Through Accenture Custom BPO Services, Microsoft s cost per activity has decreased while overall productivity has increased. The Accenture team also helped Microsoft improve its customer satisfaction ratings to the highest level yet placing Microsoft further along the road to high performance. 8
9 Major Retail Bank This privately held bank has a history of more than 30 years of successful banking and mortgage ventures in a half dozen states across the US Southwest and Midwest. The bank recognized that its post-closing mortgage function was not differentiated, and as a major cost center was not driving any significant value. With lower loan volumes and increased pricing pressure to remain competitive, the client needed to cut costs across the mortgage lending function. In addition, high error rates were driving major issues with loan sale ability and investor reporting, and delaying the overall investor delivery process. An outsourcing agreement would allow the bank to remove costs and focus on its core business processes. The bank teamed with Accenture Custom BPO Services to provide a mortgage BPO post-close solution. Providing a full end-to end technology-based outsourcing solution, Accenture combined domestic post-closing documentprocessing operations, automated post-closing technology and it s Accenture Global Delivery Network for quality control, indexing and exception processing, allowing the bank to meet its continued growth targets, focus on its core business processes and significantly reduce its costs. The bank achieved: 300 percent improvement in loan boarding process to servicing 100 percent improvement in loan availability for sale 30 percent reduction of data integrity errors in loan file 30 percent reduction in time from closed loan to receipt of paper file 80 percent reduction in time from receipt of paper file to completion of audit 100 percent reduction of manual document retrieval requests (on-line image viewing) 80 percent reduction in supply cost in part by eliminating nine commercial copiers, a service contract, and supplies (for example: paper and toner) In addition to these improvements the bank was able to achieve high performance by leveraging the investment it made in its new retail mortgage loan origination system as well as the investment it made in outsourcing the servicing of funded loans. 9
10 Educational Testing Service With the overall objective of becoming a high performance business, Educational Testing Service (ETS) wanted to intensify the pace of its push into new markets. The company set an aggressive revenue growth plan that involved expanding the scope and breadth of its existing market relationships and developing a more diverse client base. However, ETS faced a major hurdle. Given the scale of its operations (including hundreds of millions of items shipped to thousands of locations annually), ETS s continuing success rests on its ability to maintain a reliable and efficient supply chain. The company realized that it needed to significantly improve its supply chain if it hoped to penetrate new markets. Efficient and effective supply chain operations would provide ETS with the agility to more easily leverage new opportunities to grow and increase revenues, advance its mission as well as reap significant savings. ETS knew it needed a trusted partner to help it create the new supply chain and manage it with optimal efficiency while the company focused on its core competencies. Based on its strong track record in business process outsourcing, ETS chose Accenture Custom BPO Services to transform and manage all aspects of the company s global supply chain. Working together, Accenture helped ETS consolidate and simplify supply chain processes, logistics and infrastructure to improve overall operational efficiency. Accenture Custom BPO Services assumed responsibility for supply chain activities (spanning publishing, printing, forecasting, inventory and production planning, distribution, and logistics). While ETS manages test administration, Accenture is responsible for collecting, processing and accounting for tests and for capturing test data. Choosing Accenture to help it transform and manage its supply chain operations has enabled ETS to significantly improve the control, accuracy and integrity in its operations and boost its wins in new target markets. Today ETS also is benefiting from guaranteed service levels for the first time in its history, thus gaining a consistent level of reliability and a predictable cost structure for the operation of its entire supply chain. Meanwhile, ETS is achieving more than 99.5 percent accuracy in key service level agreement (SLA) operational areas. These results reflect how Accenture Custom BPO Services can deliver both cost reductions and service improvements. 10
11 Global Electronics Manufacturer An Asia-based global electronics manufacturer, with more than US$40 billion in annual sales and nearly 50 overseas branches, had grown exponentially in recent years. Demand had exploded for its mobile phone devices and home appliances. Unfortunately, warranty claim rates also were skyrocketing. With a global network of outsourced Authorized Service Centers (ASCs), the company realized it must directly address claim volume and cost in order to protect its profitability. Accenture Custom BPO Services oversaw the transformation of the company s claim validation processes, while consultants from Accenture's Electronics & High Tech industry group addressed the company's ASC network optimization and their increasing inability to accurately gauge customer satisfaction and loyalty. With the assistance of Accenture s Custom BPO Services, the company implemented an outsourced warranty claim validation program that has: Saved the company US$6.9 million in direct service cost over two years and decreased the claim increase rate per quarter from 11 percent to 1.4 percent by establishing a stable and standardized warranty claim management process in 24 countries. Optimized its ASC network which is projected to provide cost savings of US$1 million per year. This is linked to a 12 percent improvement in service quality and a 30 to 40 percent reduction in ASCs. Helped the company effectively measure customer satisfaction and loyalty by developing a new survey tool (based on the Net Promoter Score concept). Accenture's solutions decreased service costs for this company while improving claim validation processes. Quality claim data and optimization modelling dramatically enhanced the performance of their service center networks. And finally, the company was able to capitalize on claim data to gauge customer perceptions accurately and determine what it takes to strengthen loyalty. 11
12 For more information on how Accenture Custom BPO Services can help you business achieve high performance, please contact: North America Andrew Beamon Europe Francisco Aquado Latin America Rodolfo Maqueda Asia Pacific David Mathews Global Managing Director Tom Pettit Copyright 2009 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About Accenture Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With more than 181,000 people serving clients in over 120 countries, the company generated net revenues of US$23.39 billion for the fiscal year ended Aug. 31, Its home page is ACC
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