Process, Not Product

The good news is there are plenty of things I could say about new technological developments, such as the long-awaited arrival of Windows Vista or continued evolution in the security market. But of all the research data I've digested over the past several weeks, one statistic keeps taunting me: The enormous projections for business process outsourcing (BPO).

I dug up the projection in question in October, while preparing for a presentation about Software as a Service and later referenced it when discussing prospects for Vista with a group of Microsoft Certified Partners.

Here's the high-level synopsis: By 2009, IDC predicts the BPO market will reach $641.2 billion, compared with roughly $382.5 billion in 2004. There are eight main solution segments that make up this pie: human resources, procurement, finance and accounting, customer service, logistics, sales and marketing, product engineering, and training.

While normally I haven't associated BPO numbers with the channel's traditional business activities, I couldn't help but notice at least two of these segmentsfinance and accounting and customer serviceare what's driving most of the current activity surrounding the SaaS and managed services movements. Moreover, when you think about it, one of the most compelling things about Vista and all the Linux brethren that have come to market this year is the features they promise on the management and administration side behind the scenes for someone like you.

I believe we've finally reached that oft-predicted inflection point where you will have to combine the best sales arguments of the IT and BPO worlds to be successful. Sure, your technicians will need conversational familiarity with all the latest features of the latest thing-a-ma-bob. That's a given. But can they talk about one of those aforementioned process areas and relate it to the technology they're selling? Could that managed services pitch work better when combined with a BPO twist?

Best wishes for a happy and healthy holiday. I'll be back in print Jan. 8, when we debut a whole new CRN!

What philosophy is driving your 2007 business vision? HEATHER CLANCY, Editor at CRN , welcomes your feedback at [email protected]