Know Something Fresh – The Emerging BTO Industry

Terms such as BPO (Business Process Outsourcing) and BPM (Business Process Management) are already starting to be more and more familiar to most people since they represent the prosperous and emerging industries. But one industry has started its existence and promises to join these two industries – BTO.

BTO or Business Transformation Outsourcing is another type of outsourcing where companies adopt technology-based business transformations. Compared to other types of outsourcing, BTO does not lower cost in simple ways. It allows companies to reduce costs and manage technology efficiently. But BTO offers solutions that are process specific. So in a nutshell, BTO puts together outsourcing, technology, and innovation to a business through specific process improvements.

One of the companies that have tried BTO is AT&T. It referred to BTO as “cosourcing” and targeted its consumer sales and customer care operations which are lagging behind key technologies. Accenture brought CRM, personalization, self-service among others to AT&T as BTO solutions. The deal helped AT&T reduce its upfront capital expenses while retaining the IT talent within it. Companies like Accenture are not the ones capable of delivering BTO solutions. Even an established computer company such as IBM, now offers BTO solutions. BTO solutions can help gain more advantage especially for companies whose strategies rely on technology. But of course, BTO is still like any outsourcing where a company should weigh the costs and savings, at the least, before deciding to add it in one’s strategy tools.