There is sufficent evidence to suggest that the global economy is on a path toward recession, especially given the COVID-19 outbreak, geopolitical uncertainty, and economic instability in many countries. As a result, most sectors will be impacted, including Business Process Services (BPS). However, as the industry is quite heterogenous, the impact on different BPS segments will vary and depend on multiple factors. Hence, it is critical to have a more nuanced market view across BPS segments (for example, HR vs. F&A) and identify strategies to not only cope with the downturn, but also emerge stronger. In this report, we explore the likely impact of a recession on the BPS industry. We also outline a framework for service providers to identify the relative impact of the recession on various BPS segments and suggest appropriate strategies for each segment based on the providers’ financial positions. Scope All industries and geographies Contents In this paper, we address the following topics: Likely impact of a recession on the BPS industry Analysis of BPS segments to understand the likely impact of recession on each Impact on service providers’ overall BPS portfolios Strategies to navigate a recession – by service provider’s financial position Membership(s) Banking and Financial Services (BFS) - Business Process Outsourcing (BPO) Customer Experience Management (CXM) Services, including Contact Center Outsourcing Finance & Accounting Outsourcing Healthcare Payer and Provider Business Process Life Sciences Business Process HR Services and Technology Insurance - Business Process Outsourcing (BPO) Procurement Outsourcing Recruitment Process (RPO)

Disruptions in the wake of Industry 4.0 are compelling business models to change rapidly and pressuring enterprises to manage these changes in a comprehensive and seamless manner across IT and business operations. Most enterprises, however, realize only partial success in their digital transformation journeys. For an enterprise to scale digitally, it has to go beyond implementing the usual technology-related changes and transform its operating model as well. This change applies to both traditional and digital-native firms, and it begins with the adoption of a digital-native operating model, the goal of which is to establish the right balance between technology and operating model transformation. This report poses – and answers – the key questions every enterprise must ask before shifting to a next-generation digital operating model, including: What benefits can we derive from a transformation focused on the operating model, as much as on technology? What are the key value levers around which we should build the transformation? What are the typical technology changes an enterprise implements as a part of its digital-native transformation? What are the typical operating model changes an enterprise should implement as a part of its digital-native transformation? Membership(s) Banking and Financial Services (BFS) - Business Process Outsourcing (BPO) Customer Experience Management (CXM) Services, including Contact Center Outsourcing (CXM) Digital Services Finance & Accounting Outsourcing Healthcare Payer and Provider Business Process Life Sciences Business Process Human Resources Outsourcing (HRO) Insurance - Business Process Outsourcing (BPO)

Procurement, once considered a back-office function, has seen a lot of changes in the last couple of years, with enterprises centralizing and streamlining entire processes, adopting strategic and collaborative approaches with suppliers, and outsourcing to leverage third-party expertise. However, most of these changes are focused on indirect procurement. The direct spend space has seen fewer changes due to enterprise reluctance to outsource a core function, and, therefore, remains riddled with inefficiencies, resulting in huge areas of untapped opportunity. This is where third-party technology and process expertise can help, by mitigating these concerns and guiding enterprises on a transformation journey to innovate direct spend management. This paper explores the intrinsic differences between direct and indirect procurement and discusses challenges in direct spend management. It highlights the benefits of tapping into external expertise, as well as current adoption drivers. Finally, it discusses the key issues for CPOs to consider when planning to outsource direct spend. Membership(s)   Procurement Outsourcing  

In a rapidly changing world, that is leading to increased localization and uncertainty, asset-light organizations have the advantage of being more agile and swift as they respond to these changes. The Finance & Accounting (F&A) of the future will move beyond the traditional barriers of being limited to controls & compliance and efficient operations, to becoming a strategic contributor by driving business outcomes. In this report, we examine how organizations can leverage new value creation levers such as Service Delivery Automation (SDA), analytics, cognitive intelligence, cloud computing, and mobility to achieve “best-in-class” F&A processes. Membership (s) Finance & Accounting Outsourcing

The global business environment is undergoing fundamental shifts driven by economic, demographic, regulatory, and technological changes. These shifts are disrupting existing business models and creating new ones, and Business Process Services (BPS) is no exception. From a traditional focus on operational cost savings and efficiency, organizations increasingly seek added value – driving agility, speed, and better business outcomes through their BPS initiatives. Technology has emerged as a catalyst and an enabler of this evolution within BPS. As organizations explore ways to effectively leverage and embed technology in their BPS initiatives, it is imperative to develop a clear understanding on three things. First, the technology spectrum available and the benefits of creating a technology-embedded BPS model; second, the way technology needs to fit into the overall BPS design and lifecycle, anchored in business outcomes; and third, some best practices to make it happen. This research focuses on the first area, the available technologies and the benefits of creating a technology-embedded BPS model. A second report, Unlocking Next-Generation Value through Technology-Embedded Business Process Services | Part 2 addresses how technology fits into the overall BPS design and how best to implement it. This research: Describes the evolution of BPS buyers’ expectations and the role of technology in this evolution Illustrates the different types of technologies leveraged in BPS and their adoption patterns Offers insights into the next-generation value that these technologies create Serves as a base for the “how,” presented in the second report, Unlocking Next-Generation Value through Technology-Embedded Business Process Services | Part 2

As we noted in part one Unlocking Next-Generation Value through Technology-Embedded Business Process Services | Part 1 The What and Why of this two-part report, the global business environment is experiencing major shifts as a result of combined economic, demographic, regulatory, and technological changes. Business Process Services (BPS) is caught up in the mix as these shifts disrupt existing business models and create new ones. Organizations expect their BPS initiatives to result in greater agility and speed, as well as to drive business outcomes, all on top of the traditional operational cost savings and efficiency. Technology is both a catalyst and an enabler of this BPS evolution. As organizations explore ways to effectively leverage and embed technology in their BPS initiatives, there are three imperatives they must understand: The technology spectrum available and the benefits of creating a technology-embedded BPS model The way technology needs to fit into their overall BPS design and lifecycle, anchored in business outcomes The best practices to implement these technologies This research focuses on the second and third areas – how technology fits into the overall BPS design and how best to implement technology. (Please see part one of this report, Unlocking Next-Generation Value through Technology-Embedded Business Process Services | Part 1 The What and Why, for details on the available technologies and the benefits of creating a technology-embedded BPS model) This research: Provides a holistic and structured approach for buyers to capture this value Identifies best-practices for buyers that embark on this journey Builds upon the base established in the first report, Unlocking Next-Generation Value through Technology-Embedded Business Process Services | Part 1 The What and Why