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INDUSTRY NEWS


13 May 2008

BPO success 'reliant on advanced metrics'


New research by analyst NelsonHall has suggested that enterprises are changing how they measure the success of their Business Process Outsourcing (BPO) contracts, in order to get a better sense of the true impact they have on the company's bottom line.

IT Pro reports that a survey of 200 sourcing managers from NelsonHall suggested the number of companies using business-orientated metrics (BOM) will double over the next two years.

The research also indicated that 79 per cent of organisations use traditional, output orientated metrics, such as provider response times, but that 87 per cent feel BOM is the most effective way of showing the real value of BPO.

According to IT Pro, Nigel Roxburgh, research director of the National Outsourcing Association, said: "The outsourcing industry is always looking to prove its worth to company's bottom line and the use of business-oriented metrics makes it easier to do this, making outsourcing a more measurable phenomenon."

Last month, NelsonHall reported year-on-year total contract value growth of 118 per cent for the BPO market in the first quarter of 2008, forecasting a strong sector performance throughout the rest of the year.

© 2006 Adfero Ltd.

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