An estimated $17 billion of additional public sector funding could be freed up by improved business process management (BPM) in Australia.
That’s the assessment of service provider, UCMS, which has recently formed a strategic partnership with UK-based Capita Consulting to focus on the Australian public sector.
UCMS CEO, John Paddick, said the company had called in Capita to help it move away from a traditional focus on services around customer contact and back-office administration.
“We are reverting to our core competencies of project management, process redesign and systems integration in the business process management field,” Paddick said.
UCMS’ traditional verticals include telcos, utilities, road tolling and financial services.
Capita Consulting managing director, Martin Whiteley, said Capita’s role would be to advise UCMS on how it could re-engineer the services it took on.
“We think the experience, skills and capabilities of Capita Consulting will help UCMS achieve its business objectives,” Whiteley said.
While Capita would look to pick up a trick or two from the Australian market, he said it had no interest in entering the local services fray.
“We’re very much a UK company and have no intention of being anything else,” Whiteley said. “The UK outsourcing BPO market is considered to be in the order of $170 billion so there’s plenty for us to go on.”
According to Paddick, a recently published report on BPM outsourcing in the UK — adopted by the Blair Government — suggested there was an opportunity to improve public sector administrative costs by seven per cent through BPM redesign.
“If we took that maxim in Australia and applied that up and down the country we estimate that would release into the public sector $17 billion dollars of additional funding,” he said.
Paddick said the current model of outsourcing had been largely discredited due to its approach of removing business processes such as human resources or document management without an overall consideration of the business.
“That’s no way to redesign and improve the fundamental processes, those business elements are just servants of the bigger game,” he said.
Instead, UCMS would take a top-level view of BPM outsourcing to gain better results, assist in managing the transition on behalf of clients, and guarantee the benefits of the redesign in contract, Paddick said.
The growing demand for government accountability in the areas of budget, reinvestment, quality of service and choice in accessing services, would mean increased business for UCMS’ new approach, Whiteley said.
“We’re trying to release people from the concerns, time and resource constraints of the administration of government policies so they can concentrate on the key area of service delivery,” Paddick said.