error
Subscriptions are not available for this site while you are logged into your current account.
close
Skip to main content
Submit RFP

      In April, KPMG brought together senior leaders from across the Business Process Outsourcing (BPO) ecosystem for its inaugural UK BPO Partner Event – part of a broader series designed to strengthen dialogue and collaboration across the industry.

      The session convened BPO providers alongside KPMG sector and functional specialists to explore how operating models, partnerships, and delivery expectations are evolving in a rapidly changing market. With the sector at an inflection point, the event created a forum for open, senior‑level discussion on how organisations can drive greater value through Global Business Services (GBS) and outsourcing models.

      The agenda combined KPMG perspectives on the changing BPO value equation with interactive discussion.

      Candice Sieg

      Partner - Global GBS and Outsourcing Advisory Lead

      KPMG in the UK

      Outcome-based, strategic partnerships

      A central theme was the continued shift away from traditional cost‑driven outsourcing towards outcome‑based, strategic partnerships. Increasingly, organisations are seeking support not only with sourcing, but with re‑engineering operating models, embedding AI into service delivery, and integrating consulting capabilities with AI-enabled managed services to drive measurable productivity and business value.

      Several key themes emerged – AI is now an expected capability, reshaping delivery models, accelerating outcomes, and redefining client expectations. As organisations seek to realise the benefits of AI at scale, important questions are emerging around productivity, commercial models, and the measurement of value.

      In parallel, commercial structures are evolving rapidly beyond traditional input-based pricing towards outcome-based, value-linked, and risk-sharing models. This reflects a broader market shift towards delivery models that are increasingly aligned to measurable business outcomes.

      Collaboration a critical differentiator

      Participants also highlighted the growing importance of ecosystem‑led delivery, with clients seeking integrated, multi‑partner solutions that require providers to orchestrate capabilities across increasingly complex partner networks. The ability to collaborate effectively across technology, consulting, and service delivery ecosystems is becoming a critical differentiator.

      At the same time, differing regional demand patterns and delivery expectations, together with accelerating demand from upper mid-market organisations, are reshaping where and how BPO providers compete. These dynamics are creating new opportunities for providers who are able to offer scalable, sector-relevant solutions tailored to specific market needs.

      What we discussed

      AI is accelerating outcomes, redefining client expectations, and driving convergence between consulting and AI-enabled managed services.

      What it means for our clients and BPO vendors: Firms need to embed AI into service design and delivery, combining consulting with AI-enabled managed services to deliver measurable productivity and value outcomes.

      Traditional input-based pricing is giving way to outcome-based, value-linked and risk-sharing commercial structures.

      What it means for our clients and BPO vendors: Commercial structuring must move beyond input-based pricing towards outcome-based, value-linked and risk-sharing commercial models aligned to measurable business outcomes.

      Market demand and delivery expectations are increasingly shaped by distinct regional trends across EMEA, the US and APAC.

      What it means for our clients and BPO vendors: Providers must tailor go-to-market and delivery approaches to differing regional demand patterns and market expectations.

      Clients are seeking integrated, multi-partner solutions, requiring providers to operate within orchestrated ecosystems.

      What it means for our clients and BPO vendors: Providers need to strengthen ecosystem partnership and develop orchestration capabilities across multiple providers and technology partners.

      Organisations are exploring structural changes, including carve-outs and operating model redesign, to compete with AI-native challengers.

      What it means for our clients and BPO vendors: Enterprises should consider transformational operating model changes, including carve-outs and restructuring, to remain competitive in an AI-driven market.

      Enterprises should consider transformational operating model changes, including carve-outs and restructuring, to remain competitive in an AI-driven market.

      What it means for our clients and BPO vendors: Providers should increasingly prioritise upper mid-market clients with scalable, sector-relevant offering tailored to their growth ambition.

      Deep industry knowledge combined integrated end-to-end functional capabilities is critical to delivering differentiated value.

      What it means for our clients and BPO vendors: Differentiation will come from combining deep sector expertise with integrated front-to-back delivery capabilities.

      Our people

      Candice Sieg

      Partner - Global GBS and Outsourcing Advisory Lead

      KPMG in the UK

      Amiya Kagalwala

      Partner, BPO and Global Business Services (GBS) Advisory

      KPMG in the UK

      Our advisory insights

      Something went wrong

      Oops!! Something went wrong, please try again
      MTD

      Get in touch

      Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.

      Contact us