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February 2007

Online Version of This Newsletter

Welcome

2007 seems to be the year of  Business Transformation as opposed to Business Process Outsourcing. With BPO contracts coming up for renewals, many buyers of BPO services are tightening up Service Level Agreements (SLAs) and in some cases, requiring service providers to prove that they can effect Process Improvement, not just Process Execution. In this issue of the newsletter, we are featuring a number of articles that address different aspects of Process Improvement.

Mortgage processing, Insurance Underwriting and Insurance Claims Processing seem to be taking center stage with a number of Indian BPO service providers acquiring U.S. companies in these domains with the express purpose of quickly gaining customers, experience and expertise. Articles in this issue also cover these developments.  

Your suggestions for other topics, articles and news to be covered are always welcome. Please send them to newsletter@ajira.com. Please forward this to others in your organization and elsewhere, if you feel this newsletter may be of interest. We value your privacy and for any reason if you wish to unsubscribe, the instructions are at the end of this newsletter.

Thanks for your time and attention,

Anil Rewari
President
Ajira Technologies, Inc.

www.ajira.com

____________________________________________________________________________________

Business Process Management Articles


The Eight Wastes in a Process

Daniel J. Madison, Value Creation Partner, BP Trends Newsletter and Website, January 10, 2007.
Taiichi Ohno, a major contributor to the Toyota Production System, identified seven wastes that can exist in processes. Jeffery Likert, a professor at the University of Michigan added an eighth. If the wastes are removed or reduced, significant benefits can be realized.

Measure Then Model? An Alternative Process

Bruce Silver, Bruce Silver Associates, BP Trends Newsletter and Website, January 16, 2007.
BPM users are familiar with the process lifecycle. It starts with process modeling. Business analysts document the as-is process, and analyze its shortcomings – handoff inefficiencies, exception handling, inconsistent application of policies and rules. From the model they can define KPIs for the process and estimate their value using simulation analysis. Then they model proposed process improvements, and project the expected benefit using simulation, before committing resources to the implementation.

Threads of Success and Failure of Process Improvement
Daniel J. Barata, iSixSigma Website and Newsletter, January 29,  2007.
Process improvement. By now anyone involved in any type of manufacturing or service industry is familiar with this term. Although there may be a vast array of particular meanings that may be assigned to the term, everyone agrees process improvement is a necessary part of maintaining a viable business. While most of the readers of this article are likely to be users of the Six Sigma methodology, many process improvement methodologies, when applied correctly, achieve comparable results. What is important to know is those common threads that run through all process improvement efforts that succeed or fail.

A Process-Centric Approach to Business Intelligence
Colin White, BI Research, BI Review Website and Newsletter, January 11, 2007.
Vendors and analysts often talk about the need to make business intelligence (BI) process-centric. Despite this ongoing discussion, there is no clear definition of process-centric BI, and little has been written about its benefits compared to a data-centric approach.

Ajira Drills Down on Process Management
Dian Schaffhauser, Sourcingmag.com Website and Newsletter, December 13,  2006.
If you don't make a quick connection between business process outsourcing (BPO) and business process management (BPM), you're not alone. Vendors tend to focus on one area or the other with their solutions -- be it software or services. Yet, when a company enters into a BPO initiative with the intent of transforming their operations, it only makes sense that the service provider should apply good ol' process management to the effort. As research firm Tower Group has written, "Continuous improvement and automation of enterprise processes that are repeatable and scalable require BPO providers to put robust BPM models and technologies at the core of their offerings."


 

Business Process Outsourcing Articles


Dealing with SLAs and Visitors from 'Outlier' Space
Gary A.Gack, Six Sigma Advantage, Sourcingmag.com Newsletter and Website, January 29, 2007.
Service-level agreements (SLAs), which define the performance a customer can expect from a particular process or service, such as a help desk. Often, these agreements are established by negotiation rather than by a more scientific approach that would be used in a Six Sigma process (where SLAs would be termed specification limits). There is an approach for setting SLAs that can help avoid most common mistakes and that can be applied in many situations without committing to full-blown Six Sigma training and deployment.

10 Criteria to Use for Evaluating Six Sigma Projects
Thomas Bertels, Arne Buthman, Valeocon Consultants, iSixSigma Europe Website and Newsletter, January 24,  2007.
Projects are the core of every Six Sigma initiative. Identifying the right projects, having skilled people on board, and providing a proper environment for project execution determines whether the intended process and business results can be achieved and whether Six Sigma will be perceived as a powerful approach to contribute to business success. A relatively simple 10-point checklist can help evaluate projects at specific milestones as well as be part of a lessons learned exercise after project completion. Anticipating potential project failures also can drive an effective project selection.

BPO Trends 2007
ValueNotes Outsourcing Weekly Newsletter and Website, December 08, 2006.
Although it sounds clichéd, the BPO industry is maturing and innovating at a frenetic pace. While the traditional 'low-cost' driver for offshoring will remain a big factor, forward-looking vendors and buyers are now moving towards 'strategic sourcing'. Even as large firms enthusiastically embrace the "globalization" of delivery capacity, there is a distinct move towards more innovative service offerings within established vertical practices. ValueNotes looks at some of the key emerging trends and how these might play out in 2007 and beyond.

The Future of Outsourcing in India: 8 Scenarios
ValueNotes Database, Sourcingmag.com Newsletter and Website, January 17, 2007.
Sourcingmag.com asked ValueNotes, a well-known analyst firm focused on outsourcing, to explore multiple situations and scenarios for the future of offshore outsourcing in India. It has developed two "situations," both of which examine the potential impact of changes in the availability of a qualified workforce in India and American perception of outsourcing.

Insurance Underwriting - Will it take off in India?
ValueNotes Outsourcing Weekly Newsletter and Website, January  5, 2007.
Global insurance companies, in general, have been relatively slower adopters of outsourcing (both IT and BPO) compared to banking and financial services. However, with severe competitive pressures and a stricter regulatory environment, the industry has been more open to automation and business process outsourcing. Insurance carriers are under pressure to bring newer and more innovative products to the market quickly and improve profitability.

Agile Outsourcing: Metrics for Outsourced Software Development
Nari Kannan, Ajira Technologies, Inc., Sourcingmag.com Newsletter and Website, February 5, 2007.
Your software development effort has been outsourced to a CMM Level 5 vendor. You think you have strict project management controls and disciplined measurement and reporting of metrics. After all, you have many Gantt charts, graphs and dashboards to prove it. Yet your software development is still in deep trouble and your users are unhappy with the software releases you're getting. This scenario is more common than you might imagine. The question to ask isn't whether you're measuring a lot of things right, but are you measuring the right things?

 

Notable News


GM Outsourcing Overhaul, 1 Year Later
Doug Bartholemew. Baseline Magazine Newsletter and Website, January 7, 2007.
The new multi-vendor outsourcing deal is already helping to further slim GM's global I.T. costs. The automaker's new service providers will further consolidate its computing resources and data centers, Ralph  Szygenda says. "GM is saving a lot of money," he says. "We expect much lower costs over the five-year period."

Applying Lean Six Sigma Tools to an Internal Audit
Leah Lutz, The George Group, iSixSigma Financial Services Website and Newsletter, January 10,  2007.
An internal audit by a team using Lean Six Sigma tools solved the mystery of what happened to about $1 million of a liquid chemical "misplaced" at a global chemical company. Case study shows how the team used a Kaizen event and DMAIC methodology to unravel this mystery!

Reducing Delayed Starts in Specials Lab with Six Sigma
Lewis Brown, Denise Taylor, Baptist St. Anthony's Hospital, iSixSigma Healthcare Website and Newsletter, January 17,  2007.
A hospital's Specials Department project was successful in improving start times, increasing throughput, implementing control mechanisms for continuous improvement and providing feedback to ancillary departments concerning performance. By using data-driven tools and utilizing stakeholder teams, the project results at Baptist St. Anthony's Hospital demonstrates how outcomes as well as culture can be changed for the benefit of customers.

2007 Claims Opportunities: Predictive Analytics to the Rescue
Karen Pauli, Tower Group, Insurance & Technology, January 5, 2007.
In 2007 it will be imperative for carriers to establish claims data management initiatives so they can undertake predictive projects.

Indian Mortgage BPO: Acquisitions Galore
ValueNotes Database Newsletter and Website, January 27, 2007.
BPO vendors, especially the larger Indian vendors, seem to think that mortgages is where the action is, judging from the acquisition spree. While multi-service providers such as Genpact, OfficeTiger and WNS are driven by the need to broaden their range of services, specialized players such as Adventity have acquired to gain market access.
 


Notable Events

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