Ginkgo Management Consulting Sees BPO’s Relevance for Corporations Unchanged Despite High-Profile Failures

Hamburg/Singapore, January 28, 2011 – Business Process Outsourcing, the delegation of operations to external parties on a per-process basis, has long dominated headlines as a concept that promises corporations substantial reductions of operational costs, increased process efficiency, and less distraction from core activities. But recently the concept, commonly abbreviated as BPO, has lost a considerable amount of popularity with companies. This development can be traced back to a number of well-publicized cases of large-scale BPO initiatives that badly failed to realize projected benefits. Convinced of the validity of the concept’s merits, Ginkgo Management Consulting, an exclusive strategy consultancy with extensive hands-on experience in advising enterprises on optimizing and outsourcing business processes, embarked on a rigorous search for the true reasons behind these frequently cited failures. And, indeed, Ginkgo’s consultants identified an array of shortcomings related to the management of the outsourcing process rather than to the concept itself as chiefly responsible for the failure. According to Ginkgo, the companies in question almost invariably proved guilty of breaching fundamental BPO best practices. Many of them, for instance, outsourced all internal competence down to the last man, focused excessively on cost while neglecting fit, failed to prepare complete and consistent process documentation, and disregarded crucial interfaces between outsourced and internal processes. Most disastrously, however, many companies had transferred all responsibility for the BPO initiative to their respective outsourcing partners. In Ginkgo’s eyes, a company that desires to successfully outsource parts of its process landscape must by no means take a back seat in the outsourcing process. Instead, it has to allocate considerable internal resources to the meticulous preparation of the endeavor. For companies that are ready to invest these resources, Ginkgo has prepared a catalogue of practical guidelines aimed at helping managers secure the success of any BPO initiative. This catalogue, together with a detailed discussion of the most common mistakes in the context of BPO, can be found in the full report, which is available free of charge through Ginkgo’s website at: http://www.ginkgocon.com/EN/publications.html

Ginkgo Management Consulting develops and implements business strategies with a non-exclusive focus on the strategic application of business technology at large corporations. Ginkgo's clients mostly belong to the Fortune Global 500, represent a vast array of industries, and usually seek to improve their global competitiveness through the optimal alignment of business and IT. Ginkgo carefully maintains its absolute independence from vendors and solutions and, thus, is able to guarantee clients an unobstructed perspective on all available options. Ginkgo maintains offices in Germany and Singapore from which it supports clients with projects in more than twenty countries spanning five continents.

Ginkgo Management Consulting GmbH
Attn. Ms. Myrja Schumacher
Lehmweg 17
20251 Hamburg
Deutschland
Tel.: +49 40 809 081 172
Fax: +49 40 809 081 173
E-Mail: press@ginkgocon.com

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