New Everest study: SaaS prevalent in HRO but slow to gain adoption in other BPO segments

by Editor 9/24/2010 5:09:00 PM
Global consulting and research firm Everest Group has released a new study, "Role of Software-as-a-Service (SaaS) in BPO." The study provides a framework to differentiate SaaS and non-SaaS solutions in BPO and shows that, although adoption of software-as-a-service (SaaS) and Business Process Outsourcing (BPO) is growing rapidly, the combined SaaS-BPO approach is yet to see significant traction in BPO beyond Human Resources Outsourcing (HRO).

The study demystifies the BPO-SaaS approach marked by multiple definitions, offerings and “look-alikes.” It also highlights the various engagement models, value proposition and challenges of a combined SaaS-BPO approach, as well as adoption trends in the key BPO segments: HRO, Finance and Accounting. 

The report finds most instances of adoption of the SaaS-BPO approach, outside of HRO, involve a buyer having an existing BPO or SaaS relationship and the buyer then driving an independent BPO and SaaS play.

“Although some SaaS and BPO players have initiated partnerships, they are in a very nascent phase,” said Research DirectorRajesh Ranjan. “As some of these partnerships solidify and successful case examples emerge, this approach will see increased adoption in other segments as well. Further innovations in technology, including the move to cloud platforms, should help further reduce total cost of ownership thus making the value proposition impossible to ignore.”

Adoption of the combined SaaS-BPO model is highest in HRO and is the predominant model within sub-segments such as payroll, benefits administration and increasingly within Learning Services Outsourcing (LSO). The PO market is seeing emergence of sourcing-focused SaaS-BPO solutions with FAO seeing minimal activities. With the exception of HRO, adoption is largely restricted to the mid-market.

For more information about the report, Role of Software-as-a-Service (SaaS) in BPO, other research reports or other research services, please visit www.everestresearchinstitute.com.

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