IBM to offer new outsourcing service
After blazing a trail into the BPO arena, IBM is now gearing for the “business transformation outsourcing” (BTO) field with its eye on the largest market share.
What is BTO all about?
According to Allen Jacobs, client solutions executive for the Asia chapter of IBM business consulting services, it focuses on providing people, business process and technology in an outsourced delivery model.
Despite similarities with business process outsourcing (BPO), it is aimed at creating a brand new market despite an already established history of fielding business for Malaysian IT companies. The difference lies in BTO’s commitment to a business goal that has to be constantly achieved.
Jacobs elaborates, “If another customer requires upfront and ongoing cost-savings for a specific business function, then IBM, with its economies of scale, will offer lower transaction costs and continuous savings by constantly comparing its results with the most savings achievable within the industry.”
BTO comes into play in the face of changes in the business environment. Be it for internal efficiency or high speed and agile response to deal with financial constraints the company benefits from the BTO’s expertise once a core competency to be outsourced has been established.
The BTO’s responsibilities include:
- designing the new process model;
- building the new supporting infrastructure;
- developing and executing the transition plan;
- managing the cultural and human aspect of change,
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