Everest Group HC Business Process Outsourcing Handbook PDF

Health Care Business Process Outsourcing
Handbook
Service Provider PEAK Matrix™ Assessments &
Key Global Services Market Insights™ for Enterprises
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Table of Introduction Contact Center F&A Human Procurement SOT Healthcare BPO Key
Contents Resources Resources
Table of contents
Introduction
Business Process Services
Contact Center
Finance & Accounting
Human Resources – MPHRO | RPO | MSP | MCPO
Procurement
Service Optimization Technologies (SOT)
Healthcare BPO
Key Resources
List of PEAK Matrix™ Assessments
Other Sourcing Handbooks
PEAK Matrix™ Heatmap
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What you will find in this handbook
The following pages provide key representative insights collected from across our research.
Insights are presented in a variety of formats:

 PEAK Matrix™ assessments
Everest Group's PEAK Matrix assessments provide the analysis and insights enterprise organizations
need to be make critical selection decisions about providers, locations, and products and solutions
within different market segments. Likewise, providers of these services, products, and solutions, look to
the PEAK Matrix to gauge and calibrate their offerings against others in the market
Leading organizations around the globe trust these comparative assessments because of their
unbiased evaluation of factors such as vision, capabilities/functionality, talent availability, market
success/impact, and cost
 Market Insights™ infographics

Culled directly from our research, Everest Group’s Market Insights™ reveal actionable intelligence from
across the full spectrum of our research in concise, easily accessible infographics. Click here to see our
full collection of Market Insights
We update the handbooks several times each year to ensure they include the most current insights from
our recent work. Click here to find the latest versions.
How to use this handbook
Decision-making insights
Our Outsourcing Handbooks keep you up to date on the latest, most important issues in global
service delivery, enabling you to gain knowledge on key topics to build your expertise and help
you to make decisions based on best-practice information.
For example, topics might address:

 Structuring best-in-class SLAs
 Mitigating risk in the Philippines
 How to use benchmarks to control pricing
Innovative concepts
The Handbooks offer content related to emerging and future trends that will facilitate your ability
to serve as a true sourcing “consultant” within your organization, helping you to identify strategic
insights and implications.
For example, topics might address:

 The changing marketplace and its impact on service provider contracts
 Best locations for digital talent
 How organizations are rapidly implementing new technologies

Key Global Services Market Insights™
Contact Center Outsourcing (CCO)

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PEAK Matrix™: CCO service providers
PEAK Matrix™: CCO service providers for healthcare
Multi- and omni-channel customer experience
The CCO market continues to grow, but at a slower pace
CCO market size and growth, 2011-16 est.

US$ (billion); % growth
~4%
4-5%
6-7%
75-78 78-81
65-70 70-75
55-60 60-65
2011 2011 2011 2011 2011 2016E
Voice share of CCO revenue,

2011-15
Increasing share of
non-voice channels,
which operate at a
lower cost per
contact than voice
channels
Growing portfolio
consolidation among
buyers
Increased use of
automation among
service providers,
which is reducing
overall costs; once
technology matures,
growth is likely to
rise
Digital initiatives are changing CCO fundamentals
Changes in end-customer preferences … … are driving changes in the CCO value proposition
CCO delivery models are changing
Distribution of CCO contracts with

offshore/nearshore components, 2008-15
% of contracts
Significant 35%
onshore delivery1 49%
53%
65%
Predominantly 51%
offshore delivery2 47%
As enterprises shift their focus from pure cost savings to
improved customer service, the CCO delivery mix has
2008-10 2011-13 2014-15
been shifted to a balanced onshore/offshore model
1 Contracts with more than 25% FTEs located in onshore locations
2 Contracts with more than 75% FTEs located in offshore/nearshore locations However, as onshore delivery demand has grown, so
too has total cost of ownership, resulting in an increase
in multi-channel contracts and automation solutions
that may help to balance cost and service quality
Relatedly, the work at home agent (WAHA)
option is on the rise as onshoring increases,
offering an onshore option that is less
expensive than brick & mortar (B&M) FTEs
The benefits of automation in CCO
The increased adoption of automation in CCO enables service providers to

achieve balance cost and customer satisfaction
Automation Impact Benefit

Automation has led to reduction of
Replacement of repetitive tasks, empowering agents to focus Reduced total cost of
transactional jobs on solving complex customer problems ownership
Automated text E-mail and chat text is analyzed at the Reduced average
Aa analysis and reply
scripts
back-end and automated reply scripts are
sent to customers
resolution time
Automation systems predict customers’

Proactive customer problems and proactively solve them even Customer satisfaction
problem resolution before the customers realize them and loyalty increase
Processes that involve obtaining confidential Fraudulent activities

Advanced customer information are automated
information security decline; information
without manual agent intervention security increases
Virtual robots answer second-level queries Improved flexibility/agility to
Artificial intelligence that involve deep probing and background
as virtual agents dramatically increase/reduce
analysis the number of agents
MAP Matrix™: contact center (English)
MAP Matrix™: bilingual BPS (English and Spanish)
MAP Matrix™: multilingual BPS (European languages)

Finance and Accounting Outsourcing

(FAO)

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PEAK Matrix™: FAO service providers
The next-gen F&A model
The next-gen F&A model

Strategic process Judgmental process Transactional process RPA bot Cognitive
Traditional F&A model Next-gen F&A model
Advanced analytics
Reporting business results Driving business results
Hybrid integration allows on-premises applications to

seamlessly integrate with cloud-based
applications and provide a “system of
engagement”
ERP 1 ERP 2 ERP 3
Enterprise DC
Reporting & Reporting & Reporting &
descriptive descriptive ERP 1 ERP 2 ERP 3
descriptive
analytics analytics analytics
Revitalizing F&A
Technology + domain expertise = best-in-class FAO
Drive By collecting data from multiple sources and then applying

business extreme automation and cognitive intelligence, service providers
outcomes are able to offer both predictive and prescriptive insights
Drive Analyzing data from live operations offers insights into

efficient performance, metrics, controls, and best practices, as well as root
Technology
operations cause analysis for problems
Improve Digitized process descriptions and automation enable exception

knowledge identification to improve standardization and harmonization as
management well as reduce overall cycle time of knowledge transfer and
minimize the impact of ongoing attrition
Create Integration of point solutions with a client’s ERP embeds e-

“touchless” invoicing and provides automation for responding to vendor
processes queries, managing overall workflow, and processing payments
Combines industry expertise with design thinking to explore

Domain
Use domain-
possibilities and develop creative solutions to address clients’
led problem
problems and deliver business outcomes that drive value to both
solving
P&L and balance sheet
The ever-expanding FAO value proposition
2000-2008 2009-2011 2012-2015
Cost Cost Cost

reduction reduction reduction
Process Process
standardization improvement
Technology-led
transformation
Analytics-led
insights
CFO’s strategic
business partner
FAO buyers’ take on their service providers
Top three strengths* Top three areas of improvement*
Reactive stance as opposed to proactive

~26% Flexibility & responsiveness ~21% problem solving
Customer orientation and relationship Employee retention / attrition

~24% management ~17% management
Best practice / knowledge management /

~21% Demonstrable technical competence ~10% transition planning
82% Would be open to considering their current service provider if outsourcing other services
95% Would be amenable to continuing with a long-term relationship with their current vendor(s)
89% Would recommend their current service providers to others
* % of respondents who chose this option; respondents were allowed to select multiple options
MAP Matrix™: transaction-intensive BPS

Multi Process Human Resource

Outsourcing (MPHRO)

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PEAK Matrix™: MPHRO service providers
PEAK Matrix™: MCPO service providers
PEAK Matrix™: Workday-based HR BPS service providers
MPHRO market picking up pace … moderately
MPHRO market across geographies

US$ billion
~4% ~2% ~5% ~3%

1.93
1.62
2010
2015
1.13
1.03 XX% CAGR
0.39
0.30
0.09 0.10
North America EMEA Asia Pacific Latin America
Service provider differentiators
Business drivers

Recruitment Process Outsourcing

(RPO)

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PEAK Matrix™: RPO service providers
PEAK Matrix™: RPO service providers Latin America
Trends in the adoption of blended RPO and MSP
Buyer adoption trend for

blended RPO+MSP (2016)
% of deals
Buyer adoption trend for blended

deals by signing region (2016)
Blended deals 16% % of deals
APAC
23%
RPO or MSP 84% Europe
only deals North
America 15%
LATAM 2%
Buyer adoption trend for
blended deals by buyer size (2016)
60% % of deals
Large market
10% (more than 15,000
employees)
13% Mid-market (3,000 -

15,000 employees)
The RPO market continues robust growth
New RPO deal activity and year-over-year growth, 2011-15

Number of new deals
18%
9%
18%
307
260
19% 239
203
170
2011
2012
2013
2014
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2015
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Drivers of RPO market growth
Key factors driving RPO adoption

Importance on a scale of 1 to 5; 2014-15
Improving agility/flexibility 4.2
Process improvement 4.1
Cost reduction 4.0
Better insights/analytics 4.0
Impacting top-line growth 3.7
Specific expertise lacked in-house 3.7
Access to better technology 3.4
Not Significantly
important important
Latin America driving major RPO growth
RPO is growing up

Managed Service Provider (MSP)

Americas: +1 214 451 3000
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PEAK Matrix™: MSP service providers
PEAK Matrix™: MSP service providers Europe
MSP provider solution categories
A changing MSP market
How the RPO+MSP numbers add up

Multi Country Payroll Outsourcing

(MCPO)

Americas: +1 214 451 3000
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www.everestgrp.com
PEAK Matrix™: MCPO service providers

Procurement Outsourcing (PO)

Americas: +1 214 451 3000
info@everestgrp.com
www.everestgrp.com
PEAK Matrix™: PO service providers
PEAK Matrix™: supply chain management service

providers
Procurement outsourcing supplier innovation

is driving growth
Develop an open and collaborative

relationship with the supplier to
transition them into a strategic
partner Value unlocked through
supplier innovation
 Suppliers issues What?
such as cost, risk &
compliance, and Operational
speed-to-market excellence
 Suppliers have
market Why? Supplier innovation
intelligence, i.e., Market
customer intelligence
preferences and
market trends How?
Risk & compliance

 Establish supplier relationship mitigation
management program that
ensures collaboration
 Increase trust through greater
engagement beyond fulfilling
basic procurement need
 Provide suppliers with a
platform to share and nurture
ideas
Procurement outsourcing buyer adoption and solution

characteristics
 End-to-end coverage
Process scope
 Increasing number of multi-tower deals
Geographic scope  Increasing number of multi-geography deals

Approach to procurement
Sourcing process  Growing focus on competitive bidding and advisor-led deals
Deal dynamics  Contrast in average deal size for new and renewed/extended deals
Global sourcing  Increasing offshoring for both S2C and P2P
Technology  Increase in platform-based solutions in S2C and P2P
Pricing  Increasing adoption of the hybrid pricing model
Procurement = cost + value
Realizing the benefits of PO

Service Optimization Technologies

(SOT)

Americas: +1 214 451 3000
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Robotic Process Automation (RPA) Evolution
Custom satisfaction with automation in BPS
RPA adoption best practices
Service delivery automation is taking off
Keys drivers of RPA adoption in P&C Insurance
Keys drivers of RPA adoption in P&C Insurance:

Operational optimization and cost reduction
Potential adoption drivers and their relevance for P&C insurers that have adopted or
are considering adopting automation
*Scale of 1 to 5, with 1 being low and 5 being high
5
3
Relevance*
1
Optimization Cost Improving Improving Decreased Revenue Easier
of operations reduction customer governance time-to- growth remediation
experience and value
compliance realization
Automation technologies impact staffing
Key factors impacting the robotic process automation

business case in GICs
A typical business case for RPA is based on a minimum 15% cost savings; three key drivers
impact the business case
Threshold limit to achieve
Business case impact ~15% cost savings
Processes with higher automation potential = Minimum of 25% automation

Potential extent of
automation
more automation = higher headcount reduction
= greater cost savings
25% across processes under
consideration
Number of FTEs The number of FTEs that can be replaced per

replaced per RPA
license
robot varies by the process and type of RPA
solution; the more FTEs replaced per robot, the 1:1.5 1 robot to replace a
minimum of 1.5 FTEs
greater the cost savings
RPA recurring costs (such as licensing, hosting,

Recurring cost of RPA and monitoring) vary significantly by vendor and Maximum recurring costs
implementation type of solutions; the lower the recurring costs $17K of US$17,000 per license
per year
for RPA, the higher will be the cost savings

Healthcare BPO

Americas: +1 214 451 3000
info@everestgrp.com
www.everestgrp.com
PEAK Matrix™: life sciences BPO service providers
PEAK Matrix™: healthcare payer BPO service providers
PEAK Matrix™: CCO service providers for healthcare
Healthcare payer BPO market growth decelerating
Healthcare payer BPO market size

Revenue; US$ billion
CAGR
Several factors account for this change

7-9%
10-12% Value-based
Declining payer reimbursement
11.6 profitability models
9.9
9.1
8.2 Changes in U.S. Payer-provider
7.3 federal healthcare convergence
policy
HIX losses &

withdrawals
2013 2014 2015 2016 2018E
Next-generation solutions in healthcare payer BPO
Healthcare payer BPO market drivers and challenges
Global healthcare spend by region
Key Resources

Americas: +1 214 451 3000
info@everestgrp.com
www.everestgrp.com
PEAK Matrix™ Heatmap
Drawn from over 50 Everest Group’s fact-based PEAK Matrix™ research reports, the PEAK Matrix Heatmap
is simple way to compare the capabilities of 150 different service providers. The Heatmap summarizes the
ratings of each relevant provider in an area to illustrate which providers are Leaders, Major Contenders, and
Aspirants in various areas. Simply select which providers you wish to compare from the drop-down filter and
that subset will be displayed. Additionally, click on the link for each area of coverage to see the Preview
document with the specific positioning of each service provider that was assessed.
Visit bit.ly/EG-OS-Handbooks to access the PEAK Matrix Heatmap file.
List of Sourcing Handbooks
 Business Process Services (BPS) Sourcing Handbook

 Banking, Financial Services, and Insurance (BFSI) BPS Sourcing Handbook
 Healthcare BPS Sourcing Handbook
 Information Technology Services (ITS) Sourcing Handbook

 Banking, Financial Services, and Insurance (BFSI) ITS Sourcing Handbook
 Healthcare ITS Sourcing Handbook
 Locations and Pricing Services Sourcing Handbook
List of PEAK Matrix™ assessments
About the PEAK Matrix™ BPS Outsourcing IT Services Outsourcing

Everest Group's PEAK Matrix BFSI Applications services
assessments provide the  Banking BPO 2017  Independent Testing
analysis and insights enterprise  Capital Markets BPO 2016  SaaS Implementation
 Life and Pensions 2016
organizations need to be make BFSI
 Property and Casualty Insurance 2017
critical selection decisions about  Big Data & Analytics Banking 2016
 Retail Banking 2016
providers, locations, and  Big Data and Analytics Insurance 2016
products and solutions within Contact center  Global Banking 2017

 CCO 2017  Global Capital Markets 2017
different market segments.
 CCO Healthcare 2017  Global Insurance 2016
Likewise, providers of these  Mobility Services in Banking 2016
services, products, and F&A
 Mobility Services in Insurance 2016
 FAO 2016
solutions, look to the PEAK
Healthcare Cloud & infrastructure
Matrix to gauge and calibrate
 Healthcare Payer BPO 2016  Hosted Private Cloud
their offerings against others in  Life Sciences 2017  Internet of Things Services
the market.  IT Infrastructure Automation
HR
 IT Operations Automation
 BAO 2016
Leading organizations around  IT Security Services
 MCPO 2017
the globe trust these  Private Cloud Enablement
 MPHRO 2016
 Workplace Services
comparative assessments  Workday-Based HR BPS 2017
because of their unbiased Digital services
Talent acquisition
evaluation of factors such as  MSP 2016
 Digital Services
vision, capabilities/functionality,  MSP Europe 2016 Healthcare & Life Sciences

talent availability, market  RPO 2017  EHR IT Healthcare Provider 2016
success/impact, and cost.  RPO Latin America 2016  Healthcare Payer IT 2016
 Healthcare Provider IT 2016
Procurement
 Life Sciences Application Services 2017
Click here for more information  PO 2017
 Life Sciences Digital 2016
 SCM 2017
on our PEAK Matrix reports  Life Sciences Infrastructure Services 2016
Other
 Analytics BPS 2017
Other resources
Market Insights™ Everest Group reports

Culled directly from our Everest Group’s research
research, Everest Group’s portal allows you to browse,
Market Insights™ reveal search for, access, customize,
actionable intelligence from share, and comment on our
across the full spectrum of our large volume of reports and
research in concise, easily other products. Our research
accessible infographics. Click library includes a significant
here to see our full collection amount of complimentary
of Market Insights. content. Click here to visit the
research portal.
Blue Pages Events & Virtual Events

A directory of Everest Group’s Hear our insights and discuss
research and events, updated today’s hot topics at leading
monthly. Click here to find and industry conferences and at our
download the most recent own hosted events or join us on
version. our webinars and virtual
roundtables for insights that help
you make important decisions
with confidence. Visit
www.everestgrp.com and click
on News & Events
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve
sustained value. Our insight and guidance empower clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com.
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July 2017 update

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Health Care Business Process Outsourcing

For more information Asia Pacific: +91 124 496 1000

Published reports available as an annual subscription across

Custom decision support advice and analysis to support your vital

Finance & Accounting

Human Resources – MPHRO | RPO | MSP | MCPO

Service Optimization Technologies (SOT)

Other Sourcing Handbooks

PEAK Matrix™ Heatmap

What you will find in this handbook

Insights are presented in a variety of formats:

 Market Insights™ infographics

How to use this handbook

For example, topics might address:

For example, topics might address:

Service Provider PEAK Matrix™ Assessments &

Contact Center Outsourcing (CCO)

For more information Asia Pacific: +91 124 496 1000

PEAK Matrix™: CCO service providers

PEAK Matrix™: CCO service providers for healthcare

Multi- and omni-channel customer experience

The CCO market continues to grow, but at a slower pace

CCO market size and growth, 2011-16 est.

2011 2011 2011 2011 2011 2016E

Voice share of CCO revenue,

Digital initiatives are changing CCO fundamentals

CCO delivery models are changing

Distribution of CCO contracts with

The benefits of automation in CCO

The increased adoption of automation in CCO enables service providers to

Automation Impact Benefit

Automation systems predict customers’

Processes that involve obtaining confidential Fraudulent activities

MAP Matrix™: contact center (English)

MAP Matrix™: bilingual BPS (English and Spanish)

MAP Matrix™: multilingual BPS (European languages)

Service Provider PEAK Matrix™ Assessments &

Finance and Accounting Outsourcing

For more information Asia Pacific: +91 124 496 1000

PEAK Matrix™: FAO service providers

The next-gen F&A model

The next-gen F&A model

Traditional F&A model Next-gen F&A model

Hybrid integration allows on-premises applications to

Technology + domain expertise = best-in-class FAO

Drive By collecting data from multiple sources and then applying

Drive Analyzing data from live operations offers insights into

operations cause analysis for problems

Improve Digitized process descriptions and automation enable exception

Create Integration of point solutions with a client’s ERP embeds e-

Combines industry expertise with design thinking to explore

The ever-expanding FAO value proposition

2000-2008 2009-2011 2012-2015

Cost Cost Cost

FAO buyers’ take on their service providers

Top three strengths* Top three areas of improvement*

Reactive stance as opposed to proactive

Customer orientation and relationship Employee retention / attrition

Best practice / knowledge management /

89% Would recommend their current service providers to others

MAP Matrix™: transaction-intensive BPS

Service Provider PEAK Matrix™ Assessments &

Multi Process Human Resource