Future of Sourcing - Provider http://futureofsourcing.com/tags/provider en Understanding Outcome-Based Contracts http://futureofsourcing.com/understanding-outcome-based-contracts <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Outcome-Based-Contracts_Future-of-Sourcing.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Outcome-Based-Contracts_Future-of-Sourcing.png" title="Outcome-Based Contracts is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward." class="colorbox" rel="gallery-node-1075-6efHSSdVh9k"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Outcome-Based-Contracts_Future-of-Sourcing.png?itok=adYDCZ8j" width="624" height="325" alt="Outcome-Based Contracts is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward." title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/leveraging-behavioral-data-in-negotiations">Leveraging Behavioral Data in Negotiations</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>It&rsquo;s easy to hear a buzz word in the industry and make assumptions. However, what happens when those assumptions prove incorrect? And what happens when those assumptions are the bedrock under which a sourcing contract is being shaped, priced and a customer/service provider relationship is developed?&nbsp;</p> <p>&nbsp;</p> <p style="text-align: right;"><em style="font-size: 13.008px;"><a href="https://sig.org/search/ Outcome-Based Contracting" target="_blank"><img alt=" A successful outcome-based contract involves good planning,<br /> a clear demand for innovation and cost savings, and a genuine alignment of interests." src=" https://futureofsourcing.com/sites/default/files/Outcome-based%20Contracts.png" style="width: 300px; height: 250px; float: right;" /></a></em></p> <h1>Outcome-Based Contracting</h1> <p>I&rsquo;ve heard it many times: &ldquo;I don&rsquo;t care how you do it &ndash; but we need the job done.&rdquo; This can be a dangerous mindset if seeking to embark on an outcome-based project. If the customer is stating this, they have missed the point of an outcome-based agreement and should re-think their approach.</p> <p>If a service provider is on the other side of the table hearing that statement, they should challenge the customer&rsquo;s strategy and determine whether the customer has fully comprehended the level of work and commitment associated with the outcome-based approach.&nbsp;</p> <p>Outcome-based contracting is not a tool by which customers can shift responsibility to their service providers and seek to avoid the effort and time associated with good governance and performance delivery. It is an operational model that requires a strong customer and service provider relationship, trust, and a genuine sharing of risk and reward.</p> <p align="center"><em><a href="https://www.sig.org/blog/sig-speaks-jeanette-nyden-commercial-contracts-expert-author" target="_blank"><span data-ccp-charstyle="Hyperlink"><span data-contrast="none" xml:lang="EN-US">&gt;&gt;Mastering Performance and Outcome-Based Contracts&lt;&lt;</span></span></a></em></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">If a customer misunderstands what outcome-based contracting is (and perhaps confuses it with output-based contracting as this statement suggests), the customer&rsquo;s expectations are already misaligned with the service provider&rsquo;s and what each party should be committing to.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome-based models are by no means new to the sourcing world. But now, with a greater understanding and implementation of Artificial Intelligence (AI) at the customer side, they have grown again in popularity. We see a resurgence in customers demanding greater innovation and more cost-effective service, particularly in process-driven services such as finance and accounting.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">But with the potential for misunderstanding and customers confusing output for outcome, will we start to see an increase in issues arising from outcome-based contracts?&nbsp;</span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Strategic Planning for Outcome-Based Model</span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">A true outcome-based model requires a considerable amount of strategic planning from the customer before engaging with service providers. A customer needs to be capable of introspective analysis to understand, develop, and communicate its business values and strategic agenda. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">However, this flow of information will need to go both ways as the parties will need to determine whether they share the same business values and approach on which to base the relationship. While trust will be of utmost importance, this flow of communication should be subject to early contractual commitments of confidentiality. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Both parties may want to share, at a high level, their business strategies and potentially confidential information about business projections and future aspirations. This should be done in a controlled and respectful manner, sharing only the information that will benefit the relationship, with the requisite protections in place.&nbsp;</span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Securing Organizational Buy-In</span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Ultimately both parties need &ldquo;buy-in&rdquo; from senior stakeholders and commitment from every level of the organization before a strong working relationship can be established. All levels of the customer organization have to want to work with a service provider as a strategic partner and see the benefit in the service provider, helping them achieve their organizational goals. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">This is more than just the parties outlining and agreeing to specific contract outcomes. A well-developed and robust business case should be circulated to ensure that internal alignment. In turn, the service provider has to want to align its business with the customer and trust that the customer will commit to a true risk and reward model.&nbsp;</span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Each party will need to invest in the process at an early stage. The customer will need to have the right resources available for its internal analysis and baseline of existing services. Both parties will need their project teams to invest time and effort in deal structuring and seeking to exclude external factors that may impact the measurable outcomes that the service provider is remunerated upon. </span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Early investment of this type (on both sides) will be vital in demonstrating commitment to the process and a successful, working contract. The time spent in the early stages of development of core principles, agreed measures and conducting due diligence means that there is a significant level of work done before the parties reach contractual negotiation. </span></span></p> <p align="center"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><em><a href="https://www.sig.org/search/Outcome-Based%20Contracting" target="_blank"><span data-ccp-charstyle="Hyperlink"><span data-contrast="none" xml:lang="EN-US">&gt;&gt;Get more resources,&nbsp;research and data on Outcome-Based Contracting&lt;&lt;</span></span></a></em></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">If customers are not capable or cannot spare the resource to take on these tasks, they would do well to consider using a consultant who understands the complexities of an outcome-based approach. Someone who can assist with baselining the relevant existing services and create a true risk and reward program is critical.</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Although not yet at the contracting phase, the work effort involved in this early stage of development should be documented and agreed to by the parties. In addition, the baselines from which the outcomes can be measured, the outcomes themselves and any risk factors that may adversely impact the service provider&rsquo;s efforts should also be agreed on and clearly documented. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome measurements will involve negotiation and discussion between the parties. Each measurement should be capable of being objectively monitored rather than an internal metric understood by only one of the parties.&nbsp;</span></span></span></span></p> <h1><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Governance Structure for Outcome-Based Model</span></span></span></span></h1> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Strong governance is critical in most (if not all) sourcing relationships, but it is even more important when working on an outcome-based model. Governance structures should be developed early in the relationship and be robust with the ability to flex over time in line with the relationship needs and both customer&rsquo;s and service provider&rsquo;s businesses. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">It is of paramount importance that the parties &ndash; at all levels of the relationship &ndash; adhere to the agreed structure. Like with all sourcing models, if one party deviates from the model, the relationship is strained and trust is lost.&nbsp;</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">The parties will need to trust each other sufficiently to afford a greater level of transparency than is customary with other contractual models. If a party experiences changes in its interests, business strategies or demands, it is important that this information is shared in sufficient detail to allow the parties to address what changes may need to be made. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">This information will also shed light on whether that should cause a re-baselining or a change in measurable business outcomes. These will be difficult to legislate for at the outset, but the contract should afford the parties sufficient flexibility to ensure the ongoing success for both parties.&nbsp;</span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Some may feel an outcome-based contract implies a greater level of understanding and a more sophisticated level of contracting between customer and service provider. However, more simplistically, it involves strategic planning, a clear demand from the customer for increased innovation and cost savings, and a genuine alignment of the service provider&#39;s and customer&rsquo;s interests. </span></span></span></span></p> <p><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"><span data-contrast="auto" xml:lang="EN-US"><span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}">Outcome-based contracting is not suitable for all services. Still, for business processes, the model is a joint endeavor that rests on the strength of the relationship and an honest, open sharing of information including risk and reward.</span></span></span></span></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/contracts" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Contracts</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/law" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Law</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/provider" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Provider</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/negotiation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Negotiation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/governance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Governance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/outcome-based-contracts" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Outcome-Based Contracts</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-collaboration" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Collaboration</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Understanding Outcome-Based Contracts - Future of Sourcing" addthis:url="http://futureofsourcing.com/understanding-outcome-based-contracts"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 06 Aug 2020 18:27:45 +0000 Megan Paul 1075 at http://futureofsourcing.com http://futureofsourcing.com/understanding-outcome-based-contracts#comments How BPO Providers Can Reinvent Themselves in 2019 http://futureofsourcing.com/how-bpo-providers-can-reinvent-themselves-in-2019 <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/How%20BPO%20Providers%20Can%20Reinvent%20624x325.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/How%20BPO%20Providers%20Can%20Reinvent%20624x325.jpg" title="How BPO Providers Can Reinvent Themselves in 2019" class="colorbox" rel="gallery-node-1348-6efHSSdVh9k"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/How%20BPO%20Providers%20Can%20Reinvent%20624x325.jpg?itok=nLVQ487p" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p>From embracing start-ups to going multi-lingual, Edmund Ovington of Enterprise Translation-as-a-Service provider <a href="https://unbabel.com/" target="_blank">Unbabel</a> lays out some advice for BPOs on how to stay at the top of the game in 2019 and beyond.&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>Not so long ago, Blockbuster (remember them?) and Netflix ran a similar service. In fact, at the turn of the millennium, Blockbuster had the opportunity to purchase Netflix for a lowly $50 million. Blockbuster turned it down in what must rank alongside the country and western community&rsquo;s response to rock and roll as a passing fad for &ldquo;most short-sighted decisions of all time.&rdquo;  Today, Netflix has more than 100 million subscribers worldwide and a revenue of $11.69 billion. Blockbuster, on the other hand, filed for bankruptcy in 2010.&nbsp;</div> <div>&nbsp;</div> <div>This failure to adapt to a changing market had dire consequences for a well-established household name. In the <a href="https://futureofsourcing.com/the-paradox-of-the-designated-survivor" target="_blank">Business Process Outsourcing (BPO)</a> space, similar dangers exist. While rumours of &ldquo;death of the BPO&rdquo; may have been greatly exaggerated, there is a pressing need to diversify and innovate if BPO providers are to remain market leaders in 2019 and beyond.&nbsp;</div> <div>&nbsp;</div> <div><strong>Survival of the Fittest&nbsp;</strong></div> <div>&nbsp;</div> <div>It&rsquo;s not an easy market. Customer service&nbsp;has changed immeasurably in the last 10 years. Users who were once content to stay on hold with a service agent for several hours now kick up a stink on Twitter if their issue isn&rsquo;t dealt with in a few minutes. With the rise of artificial intelligence and big data, customer service has evolved into a field that&rsquo;s all about efficiency, automation and personalization. &nbsp;</div> <div>&nbsp;</div> <div>The BPO industry has sold human services for a long time and knows that it must build analytics teams as well as innovation teams. However, it frequently happens that when a large BPO provider looks to build a piece of software, a start-up can do it better and faster! &nbsp;</div> <div>&nbsp;</div> <div>Because of this, <a href="https://futureofsourcing.com/a-clear-understanding-of-outcome-based-contracts" target="_blank">BPO providers</a> are enlisting the help of savvy start-ups and new tools in self-service are emerging. Today it&rsquo;s all about the dominance of live chat in customer satisfaction, the widespread adoption of advanced analytics and the automation of repetitive processes, which allow companies to cut costs and keep operations efficient.&nbsp;</div> <div>&nbsp;</div> <div><strong>The Value of Agility&nbsp;</strong></div> <div>&nbsp;</div> <div>BPO providers should look to build omni channels as true &ldquo;human services companies.&rdquo; They have the data in place to do great analytics, but can&rsquo;t always manage it from a technical and operational point of view. &nbsp;</div> <div>&nbsp;</div> <div>One key issue is that improvements tend to be small, isolated and almost exclusively under the umbrella of the English language. In a truly global market, BPO providers are missing out on key improvements that have the power to ensure clients maintain innovative practices and high profit margins.&nbsp;</div> <div>&nbsp;</div> <div>When BPO providers can nail areas like customer service, the benefits of new technology like AI and automation can be unlocked and services will be more affordable, which is of course the bottom line for customers.&nbsp;</div> <div>&nbsp;</div> <div>Ultimately it all comes down to disrupting before you&rsquo;re disrupted. It&rsquo;s time for BPO providers to grab the opportunities to adapt, innovate and reinvent successfully for the future.</div> <div>&nbsp;&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/business-process-outsourcing-bpo" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Business Process Outsourcing (BPO)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/provider" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Provider</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/talent-acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Acquisition</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/customer-service" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Customer Service</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How BPO Providers Can Reinvent Themselves in 2019 - Future of Sourcing" addthis:url="http://futureofsourcing.com/how-bpo-providers-can-reinvent-themselves-in-2019"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 14 Jan 2019 20:52:15 +0000 Edmund Ovington 1348 at http://futureofsourcing.com http://futureofsourcing.com/how-bpo-providers-can-reinvent-themselves-in-2019#comments Lose the Bucket and Turn on the Taps: The Rise of Translation as a Service http://futureofsourcing.com/lose-the-bucket-and-turn-on-the-taps-the-rise-of-translation-as-a-service <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/translation%20as%20a%20service%20624x325.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/translation%20as%20a%20service%20624x325.jpg" title="Lose the Bucket and Turn on the Taps: The Rise of Translation as a Service" class="colorbox" rel="gallery-node-1317-6efHSSdVh9k"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/translation%20as%20a%20service%20624x325.jpg?itok=WVCSGRzx" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>I like to think about translation like access to fresh water. Not so long ago &mdash; and still in many parts of the world &mdash; getting water was hard. You&rsquo;d get up first thing in the morning, get a bucket, walk (sometimes for miles) and then come back and do it again.</div> <div>&nbsp;</div> <div>But then it became easier thanks to technology.&nbsp;</div> <div>&nbsp;</div> <div>Translation is still very much in the &ldquo;bucket&rdquo; phase. Every time a company wants to communicate in a different language, they need a bucket to go get some translation. Usually that means copying and pasting the part of their organisation that interfaces with a different country or culture on a native-speaker basis. Growing and operating a global business in this way is slow, expensive and complex.&nbsp;</div> <div>&nbsp;</div> <div>Easy, you might say. Use a service like Google Translate. However, there are still severe limitations with the AI behind easily available machine translation (MT) tools. We are several fundamental breakthroughs away from a world in which machines threaten to replace our <a href="http://www.futureofsourcing.com/digital-workers--how-will-they-affect-the-world-of-work" target="_blank">role as humans</a>. The translation challenge is probably one of the best examples of man working with machines to solve a problem in the optimal fashion. &nbsp;</div> <div>&nbsp;</div> <div><strong>Machine Translation: In its Infancy&nbsp;</strong></div> <div>&nbsp;</div> <div>There have been many amazing developments in recent years for MT and according to <a href="https://arxiv.org/abs/1609.08144" target="_blank">reports</a> that occasionally emerge in the media, the issue of global translation has been solved. Unfortunately, this is really not the case.&nbsp;</div> <div>&nbsp;</div> <div>MT is very much in its infancy. While the quality of MT has improved, drastic errors still have a propensity to slip through the net. For example Facebook&rsquo;s AI-powered translation tool caused a Palestinian man to get arrested when &ldquo;<a href="https://www.theverge.com/us-world/2017/10/24/16533496/facebook-apology-wrong-translation-palestinian-arrested-post-good-morning" target="_blank">good morning&rdquo; was incorrectly translated as &ldquo;attack them.</a>&rdquo;&nbsp;</div> <div>&nbsp;</div> <div>The fact is that MT technology needs a helping hand&hellip;&nbsp;</div> <div>&nbsp;</div> <div><strong>What&rsquo;s missing to solve translation?&nbsp;</strong></div> <div>&nbsp;</div> <div>For us to achieve this future of truly scalable, universal and seamless communication, two improvements are needed:&nbsp;</div> <div>&nbsp;</div> <div>The first is improvement at the algorithmic level: not just working in MT but also quality estimation, which automatically detects whether a machine translation is good enough. And &quot;feeding&quot; the algorithm plenty of training data to ensure it improves as it goes on.&nbsp;</div> <div>&nbsp;</div> <div>The other is huge amounts of training data. Services like Unbabel work with tens of thousands of linguists around the world. When these services detect that machine translations need further improvement, linguists are asked to post-edit until the results are not only correct but sound fluent and &quot;human.&quot;</div> <div>&nbsp;</div> <div><strong>The Fastest Data Generation Engine for Language&nbsp;</strong></div> <div>&nbsp;</div> <div>There are two billion people in the world who speak more than one language and have an internet connection. Bringing their expertise into the training process for MT creates a virtuous loop: the machine becomes a better communicator and the humans subsequently do as well.</div> <div>&nbsp;</div> <div>This Translation-as-a-Service offering means that the translation space can start to move from buckets to taps and deliver language solutions for global, customer-centric companies. Embedded in every application and enabling always-on, seamless and trustworthy multilingual communication. &nbsp;</div> <div>&nbsp;</div> <div>For established, forward-looking businesses or emerging fast-growth organisations, and anyone in between, Translation-as-a-Service is here to change the way business is conducted and permanently remove the language barrier from global communications.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/translation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Translation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/provider" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Provider</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/human-resources-hr" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Human Resources (HR)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/machine-translation-mt" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Machine Translation (MT)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Lose the Bucket and Turn on the Taps: The Rise of Translation as a Service - Future of Sourcing" addthis:url="http://futureofsourcing.com/lose-the-bucket-and-turn-on-the-taps-the-rise-of-translation-as-a-service"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 15 Nov 2018 16:10:28 +0000 Vasco Pedro 1317 at http://futureofsourcing.com http://futureofsourcing.com/lose-the-bucket-and-turn-on-the-taps-the-rise-of-translation-as-a-service#comments