BLENDSHORE A DYNAMIC AND FLEXIBLE OUTSOURCING STRATEGY

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1 WHITE PAPER BLENDSHORE A DYNAMIC AND FLEXIBLE OUTSOURCING STRATEGY How a blend of managed service platforms combined with robust technology can bring a step change in flexible global outsourcing. By using the latest technology to integrate onshore, nearshore, and offshore outsourcing platforms an approach known as blendshore businesses can tap into a wide range of benefits on a truly global scale.

2 Author Damian Traynor Date September 2011 CONTENTS INTRODUCTION 1.0 THE BENEFITS OF BLENDSHORE (R) KEY CONSIDERATIONS A STRATEGY FOR THE FUTURE 06 INTRODUCTION A few years ago, the idea of multi-shoring started to gain popularity within the Business Process Outsourcing (BPO) world as a number of large international companies sought the best offshore locations for their non-core processes. Locations such as Asia, Eastern Europe, and Latin America gained favour, and they have subsequently developed into centres of outsourcing excellence. Whilst the approach of using best-in-class outsourcing locations has merit, it alone fails to provide the dynamism and flexibility that organisations are now seeking in an increasingly competitive world. A new way of thinking is emerging that is different from the traditional outsourcing strategies in that it combines two important elements: the combination of best of breed outsourcing locations with the application of workflow technology. This approach is known as blendshore and it delivers a flexible way in which work is processed, where it is sent, how the platforms interact, and how changes are managed during the lifecycle of the project. 2 RRDGDS.COM BLENDSHORE (R) A DYNAMIC AND FLEXIBLE OUTSOURCING STRATEGY 3

3 Research conducted by the British Library suggests that Europe loses 3 billion each year in business value because of issues around digital preservation. 1.0 / THE BENEFITS OF BLENDSHORE When considering the integration of multiple outsourcing platforms there are many factors to take into account. Clearly, cost will always play a key role in decision-making, but other factors that need to be considered include process complexity, quality, responsiveness, risk and governance. A high performance outsource provider should be able to offer a service that uses the latest technology to bring together a combination of onshore, nearshore and offshore services. After all, it may be desirable to keep certain elements of a process onshore such as risk critical services or localised skills and to use nearshore and offshore resources for tasks such as back office functions like correspondence processing, finance, legal, research and artwork disciplines. A blendshore approach can provide even higher levels of flexibility by allowing clients to chase the sun in terms of processing, since the integration of global IT systems as well as the availability of a global network of outsourced operations now makes it possible to overcome the time constraints imposed by a typical workday. By adapting processing schedules to take advantage of different time zones, it is now possible to fit three eight-hour shifts, which would normally take place over three days, into a single 24-hour period instead. 2.0 / KEY CONSIDERATIONS The latest technology and online tools support blendshore by allowing companies to focus on what they do best while optimising the efficiency and effectiveness of their customer communications. A blendshore strategy makes it possible to simplify workflows, speed up time to market and reduce capital investment. RR Donnelley's premedia technologies, for example, makes it easy for different project teams to collaborate and share critical content and other information on a global scale, resulting in streamlined workflows, reduced cycle times and more effective use of content across media. RR Donnelley's range of digital asset management tools even make it possible for businesses to manage content, images and colour quality at every step of the production process in an online, integrated environment from anywhere in the world. Whether onshore, nearshore or offshore, these tools make outsourced projects easier to control, as they allow sophisticated content management via any standard web browser, without the need for additional hardware or software. The potential to create impressive cost-effective results for businesses is unlocked even further when it is combined with other offerings, such as creative, print management and logistics, all of which are made possible by employing the latest digital technologies as part of innovative, integrated solutions. To achieve these benefits, however, each element of a business process needs to be analysed carefully by the BPO provider, and client requirements need to be considered in a number of important areas, including: The overall cost of managing the process needs to be broken down into elements to identify the optimal deployment of technology and location, and where businesses can achieve cost efficiencies. The degree of customer intimacy to be retained (and at which steps in the process), and the location from which customer service can be delivered most effectively. The specific skills required to undertake the work need to be fully understood, including any particular language requirements. The degree of responsiveness needs to be captured, such as the need for a 24-hour turnaround, or for chase the sun processing. Although the points above are important factors, a strategic blendshore approach is only possible after a comprehensive review is undertaken to develop a solution that is both practical and realistic to achieve. For example, splitting a simple business process into twenty different steps, which may need to be processed in different parts of the world, using different skills, languages and project teams, simply won't make financial or operational sense. This is where businesses need to seek specialist advice on how this process can best be managed. 4 RRDGDS.COM BLENDSHORE (R) A DYNAMIC AND FLEXIBLE OUTSOURCING STRATEGY 5

4 3.0 / A STRATEGY FOR THE FUTURE The case for adopting a blendshore outsourcing strategy is clear: this flexible model can be used to deliver a highly customised, client-driven and cost effective global solution. It can provide effective access to a variety of resources both on, near and offshore and be supported by leading-edge workflow technology to provide robust multi-country, multi-processing capabilities. Because the latest technology in this area can now offer sophisticated push workflow systems, it is now possible to make changes to work patterns very easily, and to deliver work to a number of operations across the world at a push of a button. For added flexibility, these workflow systems and procedures can be modified at any time even within a shift, if necessary in line with specific volumes or targets that the business wants to achieve. To achieve the benefits of blendshore businesses should work with a provider that can manage the entire outsourcing process from the initial step of identifying the optimal locations, through to the delivery of high quality process management. When implemented strategically, this approach can add real value to an organisation as it leverages global resources and technology effectively, and supports the client's overall outsourcing objectives. Our UK operations provide the perfect environment to re-engineer and transform critical business and communications processes. We have helped some of the world s largest companies automate and streamline previously manual and often paperbased processes. Our operations in in Central and Eastern Europe provide a nearshore base, still within the EU, to to access skilled resources across a a number of of disciplines, whilst complying with EU EU data protection requirements. Our Our teams in in India, Sri Sri Lanka and and the the Philippines give give our our clients access both to to a a lower operational cost-base, and and unrivalled specialist expertise across financial, legal legal and and research disciplines 6 RRDGDS.COM BLENDSHORE (R) A DYNAMIC AND FLEXIBLE OUTSOURCING STRATEGY 7

5 RR Donnelley is a leading provider of outsourced communication and business services. We work with many of the world s leading organisations to help transform the way they engage and interact with their customers. We are uniquely able to connect and manage complex communication processes for greater efficiency and impact. For our clients, this means they can reduce costs, improve efficiencies and achieve new levels of flexibility all achieved as a result of our experience, scale and insights gained from our work across the globe. Founded more than 147 years ago, RR Donnelley is a Fortune 250 company that employs over 58,000 people across over 600 locations For further information: Call: +44 (0) marketinguk@rrd.com Visit: rrdonnelley.com/gds Ref: RRD/WP/BS/02/0412. Copyright 2011 R.R. Donnelley & Sons Company. All rights reserved.