IBM GSA to add to outsourcing offerings

IBM GSA to add to outsourcing offerings

IBM Global Services Australia (IBM GSA) is gearing up to launch business process outsourcing (BPO) services here, starting next year.

Philip Wing, general manager, strategy and business development, said IBM GSA is currently assessing the local market and looking for potential partners, in preparation for rolling out BPO offerings.

IBM GS has been active in business process outsourcing since launching BPO offerings in the US more than a year ago.

The company is now rolling out BPO services globally.

Outsourcing services that are IBM GS' core BPO offerings in the US, and are likely to be on offer as part of the Australian initiative, include:l customer relationship management - including customer selection, acquisition, development and retention;l sourcing and procurement of non- production goods;l employee (HR) services.

Currently BPO accounts for just 5 per cent of IBM's outsourcing revenues, according to Karen Riley, general man-ager of business process offerings, IBM GS. She predicts it will become a major part of IBM GS' business as the BPO market grows.

G2 Research predicts that the worldwide market for BPO will approach $US300 billion by 2000 with an annual growth rate of 20 per cent.

Riley said much of IBM GS' skill set in the area of BPO emerged from the company's own internal re-engineering.

She said many of the personnel involved in internal re-engineering initiatives were recruited to work in the BPO division.

IBM GS' BPO clients in the US include Pacific Gas and Electric Energy Services which awarded a multimillion dollar multiyear contract to IBM GS in April 1998 to provide billing and CRM (customer relationship management) services.

Under that contract, IBM GS provides call management, electronic customer enrolment and service requests, and a variety of billing and payment options.

Also in the US, United Technologies outsourced non-production procurement to IBM in June 1998.

Companies partnering with IBM GS on BPO in the US include Call Interactive, Sitel and Teletech.

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