BPO debate

20th June 07
BPO
Just received the following input on the BPO debate, from Samad Masood - who is in charge of Outsourcing@Ovum.
Samad writes:

I've read John's reply on Hotviews - he is pretty spot on. I'd agree that BPO isn't necessary to win IT contracts, but I would also say that BPO is necessary for large IT services firms to secure long-term strategic partnerships with clients and therefore sustain long-term growth and profitability. All IT services are becoming more business oriented and owning the business process will, in the long-term, mean that you decide on the IT underlying it. Sure, its not the case now, but things are likely to end up that way. Or at least that is the threat/fear amongst IT services vendors. So ultimately, BPO services can be justified as a necessary interest for IT services players.

Ovum's "BPO - IT Services Vendor Strategies" report has just been published. You can get more details at www.ovum.com