June 08, 2005
ERP Companies Like SAP Reel From BPO Growth
The trend of outsourcing core business processes is putting increasing pressure on large software vendors like SAP. After years of earning revenue through resource planning suites, business process outsourcing is cutting the companies market and consequently its revenues. To compensate, is attempting to adapt through the creation of Enterprise Services Architecture, a liscencing venture with partner vendors. The company hopes to earn significant revenue from other products developed by its partners which use SAP architecture. Google News Reports:
SAP sees the trend as a threat to its business and has begun hiring BPO experts, Fersht said. In April it became the first ERP vendor to jump into the BPO market announcing it will launch its own program through a partnership with several BPO providers.
"The ERP model has gone stale and has been going stale for years," Fersht said. "We're seeing many software companies under serious threat."
Read More: Analyst: Outsourcing threatens SAP, other large vendors
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