From now until 2009, 50% of organisations involved in business process outsourcing (BPO) relationships will experience cost overruns and unacceptable service delivery quality, according to Gartner. 

Analysts attribute this frustration by enterprises to a lack of understanding of their specific BPO offerings in terms of market hype versus true market maturity.
“It’s clear that buyer’s across the market are experiencing consistent and pervasive hype concerning which processes and service providers can truly deliver on the promise of business process outsourcing,” says Lisa Stone, research vice-president for Gartner.
“Companies must set up an internal BPO strategy in order to block out the hype and determine the best offering for them to achieve their goals,” Stone says.
“This consists of measuring the environment, identifying the drivers behind why BPO is being considered and deciding which approach is best for entering into a BPO relationship. Then use a structured sourcing process through vendor evaluation, contracting and negotiating and creating an internal management support team to ensure that all details are in place to support the service before signing an outsourcing contract.”
In the Gartner report “Hype Cycle for Business Process Outsourcing, 2006”, two distinct BPO services stand out for their transformational impact: core banking, and comprehensive finance and accounting (F&A) BPO.
However, they are both far from mature (each is more than five years away). When they mature, they will assert a pervasive influence on basic service delivery approaches for their sectors.
In the more immediate timeframe (less than two years), contact centre outsourcing, which is expected to plateau in less than two years, appears capable of reaching maturity and providing high-level impact.
Contact centre outsourcing has a high potential for business impact, since these services improve or drive business functions for interacting with a wide range of constituencies, including customers, partners, employees and suppliers.
Driven by the provider’s functional process expertise and industry-specific capabilities, contact centre outsourcing can deliver on the promise of BPO enterprise-wide.  “Organisations that have adopted a multi-channel, multi-domain contact centre, and realised its effectiveness, should only investigate outsourcing those functions or channels that aren’t economically viable for them to maintain,” says Matthew Goldman, research director for Gartner.
“Midsize and smaller organisations that need to appear bigger than they are should investigate contact centre outsourcing or globally-delivered (offshore) contact centre outsourcing as a potential solution.”