IBM to lay greater emphasis on outsourcing

IBM will concentrate on business processing and business trans-
formation outsourcing for both domestic and international
companies.
IBM general manager for solutions delivery Suras Lertpoompunya said the company would sell more processing and transformation outsourcing, known as BPO and BTO.Outsourcing deals continue to grow in both number and value as more organisations adopt them as a business strategy, Suras said. About 10 large clients in Thailand outsource work to IBM, including the Labour Ministry, Thanachart Bank, Tisco Bank and Singapore Airlines. BPO provides customer-service, technical support and business processes. IBM said it improved performance, productivity and business-value efficiency. BTO is long-term outsourcing where a qualified business partner takes over the operational and processing functions and information technology needs of clients. IBM said BTO "creates sustainable shareholder value" while freeing the company to "profitably structure commercial loans, manage investments and handle consumer transactions in thousands of different offices around the world". BTO allows companies to "realise faster, more successful and enduring business process transformations". IBM said outsourcing was a tool clients could use to improve earnings, returns on investment and sales. Suras said the company would continue to work with the telecommunications, banking and finance sectors, which had potential for outsourcing. The company employs more than 1,300 people in outsourcing services in Thailand, and these generate about 50 per cent of annual revenue. It provides continuous training in outsourcing skills. "Thai engineers can provide outsourcing for international and domestic markets. Outsourcing is an offshore business which European companies order from Thailand," Suras said. Research showed 56 companies - 18 were IBM clients - out- sourced information technology, paying a total of US$50 million (Bt1.77 billion). The research said these companies reported long-term improvements in business performance when compared with sector peers. Jirapan Boonnoon, The Nation
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