Arab States slow to adopt business process outsourcing
Organizations in Arab states have been slow to adopt a model of business process outsourcing that has seen phenomenal global deployment in recent years and could enable regional enterprises to dramatically reduce their internal operating costs, according to regional experts. Today, less than one percent of all organizations in the Middle East practice BPO.
Analyst group Gartner Dataquest defines business process outsourcing (BPO) as “the delegation of an Information Technology (IT)-enabled business process to a third-party that owns, administers, and manages the business process according to a defined set of metrics.”
"Businesses in the Middle East are seeking to reduce their internal spending and non-industry-specific support activities represent an enormous potential market for service providers. Services that were in the past managed by various providers, are now being offered as whole solutions by one provider,” according to Derek Kemp, Middle East CEO of Logica.
"So when procuring for a niche requirement, global businesses are increasingly adopting the design, build, finance, and operate (DBFO) model, long used by governments around the world. In this model, the provider designs the business processes, delivers a best practice IT solution to support them, and runs the resulting processes on an outsourced basis, typically using a financial or accounting model relating to business volumes,” added Kemp.
“Ultimately, companies in the Middle East have got to ask themselves whether they can afford to sustain such extensive, and largely unnecessary, IT spending levels, when business process outsourcing has become a viable and immediate strategic alternative for them,” concluded Kemp.
Logica is a global solutions company providing management and IT consultancy, systems integration, products, services and support. Logica's clients operate across diverse markets including telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector.
The company has over 11,500 staff in 34 countries worldwide. Founded in 1969, Logica is listed on the London Stock Exchange where it is part of the FTSE100 index of the largest UK listed companies. — (menareport.com)
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