BPO as Enterprise Partnership: The BAE-XChanging Transformation Strategy for HR Procurement
By 2005, European business process outsourcing (BPO) is estimated as worth 72 billion Euros in revenues (2002 comparator: 43 billion). In semi-recessionary times from 2001, back-office activities and functions such as IT, Human Resource administration, procurement, finance and accounting, legal, energy management and real estate management have been obvious targets for efficiency, and even transformation, drives. But how to deliver on the very real promises outsourcing offers? In this chapter, we look at innovative, strategic approaches to this question, involving risk-reward contracting, the creation of a third entity joint owned by client and supplier, and the application of distinctive supplier core capabilities. The example we will focus on, drawn from BAE Systems’ experiences and those of ‘pure play’ BPO supplier Xchanging, will be procurement.
KeywordsContract Labour Category Director External Customer Indirect Procurement Enterprise Partnership
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