Moving to Volume Outsourcing

Katy Ring, Topic Director, HostedServices@Ovum discusses the extent to which professional services organisations should offer...

Katy Ring, Topic Director, HostedServices@Ovum discusses the extent to which professional services organisations should offer online service provision

The arrival of hosted online service provision is presenting professional service organisations (PSOs) with many interesting strategic decisions.

It enables them to reduce their costs in delivering online services to users. Depending on the business model, the PSO can exploit the fact that it is delivering a proven, standardised online service to clients

There are three main strategies open to them:

1. Keep hosted services as an internal cost centre
2. Sell services direct to clients
3. Outsource the provision of hosted services to lower-cost providers

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