How Saas, BPaaS, Automation and other Disruptors are Flipping the BPO Gameboard

1. © 2016 Information Services Group, Inc. All Rights Reserved.

2. © 2016 Information Services Group, Inc. All Rights Reserved.
How SaaS, BPaaS, Automation and Other Disruptors
are Flipping the BPO Gameboard
Game Changers

3. © 2016 Information Services Group, Inc. All Rights Reserved 33
 HCM SaaS leads new HR tech investment.
 SaaS Financials—will they follow the same path?
 What is the transformation agenda and how to win in this “evolving”
world of digital?
 Automation and analytics—the future is here!

4. © 2016 Information Services Group, Inc. All Rights Reserved 44
“But let’s not fool ourselves. At the end of
the day, HR is moving to the cloud.”
- Mike Ettling
President, SAP SuccessFactors
More than 50% of all new HR tech investment is SaaS.
HCM SaaS has hit a tipping point.

5. © 2016 Information Services Group, Inc. All Rights Reserved 55
HCM SaaS continues to gain momentum
Research from ISG Insights 2016 HR Technology and Service Delivery Trends Survey
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2018 2020
Licensed software on-premise
Licensed software hosted
Internally Developed System
Hybrid
SaaS subscription-based

6. © 2016 Information Services Group, Inc. All Rights Reserved 66
User experience is the #1
selection criteria for HCM SaaS.
Self-service adoption is driven by ease of use.
Adoption levels exceeding 90% are achievable with
intuitive, consumer-grade mobile applications.
“That’s what people expect—a very simple, highly
visual, intuitive user interface.”
- Larry Ellison
Executive Chairman and CTO of Oracle Corporation

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BPO buyer expectations have been reset.
 Easy and always-available, commercial-grade user experience
 Solutions that are faster, cheaper and better
 Scalable models built on technology of choice
 Plug and play services
 More control and transparency
 Solutions to help keep up with global talent changes

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When employees and managers contact
HR service centers, their issues are
complex and often multi-faceted and
require consultative skills to resolve.
Not just fewer calls,
but different needs.

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Creating personalization
and engagement
Technology and excellent customer service
must work together to create memorable,
personalized experiences that help attract,
engage and retain talent.

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Expect continuous innovation.
When your technology re-invents itself
every 3 to 6 months, it’s hard to expect
anything less from your service model.
Change management is a constant need.

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Talent-as-a-Service
The Global Gig Economy
Enterprises are increasingly looking at freelancers,
crowdsourcing and other non-employment
relationships to augment the traditional workforce.

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 FinTech
 BPaaS
 “F&A in a Box”
Will they follow the same path as HCM?
SaaS Financials

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More than half of IT & Finance leaders
are looking to make a change….
Data from ISG Insights, 2016
5%
15%
17%
21%
17%
23%
We are unhappy with the system but
have no budget to replace
We are planning to replace the system
(next 6-12 months)
We’re planning to replace the system
(next 12-24 months)
We’re currently evaluating options to
replace the system
We recently upgraded/replaced the
system
We’re happy with the system; no
changes planned
0% 5% 10% 15% 20% 25%
Please select the answer that best describes the status of your
current Financial Management System(s):
*
*

14. © 2016 Information Services Group, Inc. All Rights Reserved 1414
What is the future of financial systems?
Who is disrupting finance technology? Can I get “F&A in a Box” ?

15. © 2016 Information Services Group, Inc. All Rights Reserved 1515
 Differentiating is more critical than ever
 Digital labor is real
 Automation and analytics are “tablestakes”
 Solution selling means you need to be able to answer:
“How will you improve or shape my business outcomes? “
“What do you offer that others don’t?”
“How will you help me successfully execute my transformation agenda?
Game-changing strategy
How do providers win in this “evolving” world?

16. © 2016 Information Services Group, Inc. All Rights Reserved 1616
 With automation and analytics becoming more mainstream, the lines
between business process services and IT are blurring.
 Tech is an enabler to the transformation agenda and the business.
 A focus on CoE may drive growth in GBS/SS implementation and perhaps
even repatriation.
 G&A functions that go digital are enabling business model transformation
and will become table stakes in the near future
Digital: The future has arrived!

17. © 2016 Information Services Group, Inc. All Rights Reserved 1717
 Clarify services capabilities and pricing.
 Define what is embedded and what is separate.
 Volume or Margin
 Competition is DIY
It’s time to get real….
Automation and Analytics

18. © 2016 Information Services Group, Inc. All Rights Reserved 1818
Deployment Options
Service
ProviderSpecialist
Do-It-
Yourself

19. © 2016 Information Services Group, Inc. All Rights Reserved 1919
While IT is a key enabler, the
most successful deployments
have been owned by the
process teams … either as in-
house, DIY-led or with a service
provider.

20. © 2016 Information Services Group, Inc. All Rights Reserved 2020
Be prepared for the hard questions!
 How many clients do you have on XX platform?
 What value do you bring on top of XX platform?
 How much effort is required of my IT group?
 Will my security requirements be addressed in your solution?
 What specific improvements can I expect in
• Business outcomes
• User experience
• Cost
• Agility
• Data insights
 How will you support me through application and services conversion?
 What is your roadmap or outlook?

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