Industry news

WNS (Holdings) Limited (WNS), a leading provider of global Business Process Management (BPM) services, today announced results for the fiscal 2017 third quarter ended December 31, 2016. Revenue crept up to $145.4 million, up 0.7% from $144.4 million in Q3 of last year leading to a profit of $18.0 million, compared to $15.7 million in Q3 of last year. WNS added 7 new clients in the quarter, expanded 6 existing relationships and has a global headcount of 32,184 as of the 31st of December 2016. For the full release, please click here.

After receiving some confirmation of plans to leave the EU single market earlier in the week, business and world leaders can now develop a clear strategy on Brexit. Already, financial companies such as HSBC and UBS have announced that 1000’s of jobs will be moved from London to continental Europe. Christine Lagarde, head of the International Monetary Fund has warned that the UK economy will face huge risks in leaving the EU single market. Our industry is aware of the challenges but welcomes clarity. Milan Panchmatia, Managing Partner of 4C Associates, a leading procurement consultancy, says “We believe that the vast majority of the procurement community, both in the UK as well as in the wider world will welcome the increased clarity now offered. The hope remains that the UK government is true to the wishes of the people and negotiates the best possible trading deals it can with the EU and elsewhere.”

At the World Economic Forum in Davos, a panel discussion has highlighted the lack of diversity in the developer skills pool. Computerweekly.com report on how the problem could lead to gaps in the industry as programmes only reflect their developers view of the problem. The need to develop a diversified talent pool is important as AI becomes a greater part of the world economy.

John Manzoni, the chief executive of the civil service has noted in a special edition of the Civil Service Quarterly magazine, that the increase in data availability and quality, along the shift towards digital services, was changing “the whole fabric of government”.

The scale of the data available to government offers huge potential to improve public services, but Whitehall needs to change the way it works if it wants to make the most of this by embracing new policies, tools and techniques. You can read more here.

The GSA will be hosting two Trade Missions in February; one to India to attend the 25th NASSCOM Indian Leadership Conference in Mumbai, and the other to take a closer look at South Africa. Places on these Trade Missions are at an absolute premium so contact the GSA immediately if you are interested in attending. You can learn more about the trade missions at the GSA website. If you are new to sourcing, or already very active in the market and simply seeking an update on the benefits of offshoring or how it is transforming lives globally, then this is a fantastic opportunity for you.

Outsourcing partnerships and projects have the potential to create outstanding customer experience (CX) - because they bring together complementary experts and specialists. When buyers and suppliers work in harmony, and when creative vision is delivered through technical implementation, customers are the winners.

One of the biggest outsourcing challenges for 2017 will be creating seamless and connected customer experiences. If this can be achieved, it won't just satisfy increasingly demanding customers, it will also boost bottom lines.

Forrester has 6 years of data showing that CX leaders grow revenue faster than laggards. But where should effort be focussed to deliver the greatest CX impact? Below are four cornerstones of creating best-in-class customer experience.

1. Fit-For-Purpose Measurement

Quantifying customer experience is critical - until you know what’s underperforming, you don't know where to invest.

Creating a truly holistic view of CX

To report on true customer experience, organisations should be measuring customer service channels and offline/in-store experience as well as multi-channel activity on key digital properties.

Current methods don’t work

The bad news is that current methods such as Net Promoter Score (NPS) are flawed. Single score metrics such as NPS work well if you want a snapshot of brand perception, but are too simplistic and emotionally-focussed to measure the real complexities of digital customer experience.

Organisations with the ambition to create great CX (and prove they have) need to use performance indicators fit for 2017 and beyond.

2. People And Platforms Pulling Together

The ability for outsourcing projects to deliver great CX requires teams and technologies working together to facilitate the easy flow of data and rapid creation of new content.

People

Projects teams made of buyers and suppliers need to be connected and in regular or real-time contact with each other, ensuring that both sides understand the impact their actions have on the customer experience. And these working groups must be incentivised to share insights and openly collaborate on customer-centric solutions.

Platforms

As we move to a data-driven future, technology platforms need to be better integrated. Only when this happens can the true potential be realised for customer engagement across multiple channels.

3. Give Customers Consistency

As customers effortlessly hop between devices and try new communications tools, they expect brands to provide a consistent, joined-up experiences.

Create a Single Customer View (SCV)

The unprecedented levels of data available, plus the interoperability of CRM and CMS systems, and increasing power of on-site optimisation mean that creating (and taking advantage of) a true SCV is now possible.

Having this capability will make it easier for organisations (working with their technology partners) to create content that is personal and highly relevant. This means customers can be offered experiences based on the context of their engagement - past, present and future. Increasingly savvy consumers are already turning their backs on organisations that aren't using this data to enhance experiences.

A number of smaller, nimbler alternatives to the enterprise set emerged in 2016. These are enabling CMOs to build the future at a fraction of the cost and implementation time.

4. Rich And Rewarding Relationships

The world’s leading service brands have raised the bar to unprecedented levels, and customers now expect interactions to be surprising, rewarding and innovative. They’re also extremely fickle - one in four Brits deletes apps on the same day - so organisations need a laser focus on ensuring content is engaging and experiences areremarkable.

Personal, relevant and timely

Unsurprisingly, personalised content encourages users to stay longer on a brand’s website, whilst weaker content results in higher drop off rates. Recent research we completed found that ecommerce retailers who published stronger content experienced 21% lower bounce rates than those with weaker content.

And the longer a customer stays on your site, the longer they have to browse and the more likely they are to convert to a sale. In the same study, simple product recommendation functions saw brands reap the rewards of 140% more page views.

Product innovation unlock incomes

A Gartner study found that 83% of customers are willing to pay more for innovative products. That’s why brands are creating accelerator programmes and investing in startup technologies that they hope will become game-changers in their industries. One recent example is Dazzle - the winners of the latest Marriott ‘Test Bed’ accelerator – which will be trialling its voice-activated personal assistants in one early adopter hotel.

Experiments like this that combine IoT devices, new digital interfaces and cognitive technologies have the potential to reinvent customer interaction. The challenge to reach the market first is now greater than ever, and first movers benefit by generating PR “buzz” and the ability to charge premium prices.

Conclusion

In today's increasingly complex digital and omni-channel world, CX has become a battleground for competitive advantage. How the outsourcing world meets this challenge will have a significant effect on perceived project success in 2017.

As ex-Mercedes Benz USA President and CEO Steve Cannon put it, “Customer experience is the new marketing.”.

Find out more at EXCELLENCE IN CUSTOMER EXPERIENCE with CXScore on Thursday 16th February 2017.

IT tools for managing enterprise resources, such as ERP or Business Intelligence systems, are mainly associated with large, well-developed organizations that require modern, integrated information systems for the purposes of effective management. But can these systems also be useful for start-ups?

It seems that the answer is no. Startups are ventures which are burdened with considerable risk, so their origins are normally associated with minimal financial outlay, and investment in areas that are not crucial to the running of the business is usually postponed for later. The creators of startups forget, however, that apart from the idea itself, strategy is most important from the perspective of success. So if a startup is not designed for success from the outset, there is a risk that it will never come to pass.

Advantages of the implementation of IT systems

The implementation of ERP and BI systems gives you the opportunity to organize business processes - both in the case of developed organizations and those in the initial stages of development. In the latter case, an additional advantage is that there is no need for reorganization. An entrepreneur can organize his business enterprise around the selected tool, without losing sight of any relevant elements. It is worth remembering that such systems were created to optimize the operation of enterprises, so they are supported not only by technology, but also by decades of experience in business management.

An important step in the implementation of any system is the pre-implementation analysis stage. The Implementation Partner is able to locate the weak points of the organization, as well as indicate the place where the system will achieve the best results. In the case of a startup, the analysis phase can turn out to be groundbreaking for the entire business, and innovative ideas can lead to equally innovative technological solutions that will ensure effective implementation and success.

It is also a good idea to take the implementation of appropriate IT systems into consideration even at the stage of business plan creation. For potential investors, it is a clear signal that the start-up is built on firm foundations, and not just good intentions. In other words - the project gains credibility in their eyes.

It is also worth taking into account the fact that the ERP system gives the company a comprehensive solution that eliminates the need to implement specialized systems, some of which are required by law, as in the case of accounting software. This means reducing the cost of implementation and licensing. A BI system, on the other hand, allows users to control the effects of the company’s operations and enables a rapid response to the rapidly changing external circumstances.

Costs of implementation

The implementation of IT systems may involve considerable costs - especially in the case of highly developed organizations with complex business processes. However, in the case of start-ups, costs need not be so large. First of all, the design of system functionality in parallel with the organization of the company itself can help to reduce implementation costs. Secondly, users can easily select tools whose price will be within the realms of budgetary constraints.

What to choose?

ERP systems facilitate modular design, which means that they consist of functionalities serving different areas of the company. These modules are fully integrated (i.e. the data from each module is available in one place), but do not all have to be implemented immediately. At the beginning, you can successfully focus on the key functionalities, while others may be implemented later, or you can also leave them out completely.

ERP solutions available in the cloud are also a good option for start-up owners, as they are very flexible in terms of costs. They allow you to adjust the price to specific requirements, as well as facilitating full scalability in case those needs change.

Even completely free tools can be used for business intelligence, as such tools will handle basic analytical tasks even at the early stages of the company’s operations - they are primarily self-service applications and the like. Another advantage of tools of this type is that they allow for the evaluation of the benefits of data analysis within the company, before the implementation of a more advanced system.

It is also worth remembering that most companies already operate basic tools which make use of analytics - we are talking, of course, of the ubiquitous Excel, as well as SQL Server, which has built-in analytical functions for the fully licensed versions at least. It’s also a good idea to check if the selected ERP system provides such functionality.

Consultation

As we can see, the range of possibilities in terms of the selection of tools is broad and does not require companies to immediately invest large sums in complex tools. Of course, in the case of a brand-new, startup adventure with business, such a choice will not be easy for entrepreneurs. So it’s worth taking up the option of a consultation to help you make the right strategic decisions. Such assistance can mean turning to organizations that support businesses, such as a platform for startups, or to a professional company which deals with the implementation of IT systems. This initial consultation is generally free of charge.

We finally have some clarity on the future of the United Kingdom, it appears Brexit means ‘hard’ Brexit for the government as Mrs May edged us closer to leaving the customs union. Quite simply, this means that the UK will be excluded from the EU single market and will therefore have to negotiate a new deal with the EU once it leaves. The positive side of this argument is that the UK will get to negotiate new trade deals across the globe, as a member of the union we could not negotiate our own deals. It must be said that we are more certain of the plan ahead, Mrs May has laid out a vague structure which can provide a foundation for negotiations. The Pound appreciated sharply against the Dollar during the speech, most notably when Mrs May confirmed the final agreement would have to go to Parliament.

The employment situation in the UK is looking a bit sticky, as the Office for National Statistics (ONS) reported that the number of people in work slipped by 9,000 to just over 31.8 million in the three months to November. The employment rate held at all-time record high of 74.5 percent and wage growth picked up pace. The suggestion among analysts is that Brexit uncertainty has kept hiring low among firms with wage growth reflecting a skills shortage among professionals and specialists. For more information on the data, click here.

Outsourcing firm Mitie has issued a new profit warning, saying the effects of Brexit uncertainty are causing delays in contract signings. The firm has brought in Sandip Mahajan as its new finance chief in a further change to its top management after a change of CEO’s at the start of the year. It is thought that the introduction of new labour laws are hurting Mitie, although the industry as a whole is adapting well. To learn more, click here.