Corporations demonstrate a lack of clarity in understanding the importance of enterprise software and limited ability to translate that into actionable BPO strategies, according to a study by EquaTerra. Respondents identified a struggle to adequately assess IT needs and requirements in BPO, apart from accounting for the role of technology, vetting service providers’ IT capabilities and managing enterprise software licenses.

The study titled Assessing the Role of Enterprise Software Applications in BPO was conducted with 126 executives (director-level and above) of large corporations (70% with revenues in excess of $5 billion) and explores the buying patterns and preferences for enterprise software in BPO engagements.

A few key findings of the report are that SAP and Oracle were the preferred applications in BPO, even though opinions among respondents varied. Europeans preferred SAP to Oracle (48% to 25%) and F&A executives felt SAP had a stronger BPO value proposition than Oracle (71% to 52%).

The other key finding is on ownership of software licenses in BPO. The study finds that more number of HR executives prefer providers to own the license (35%) as compared to F&A executives (21%). Europeans had a limited preference (33% had no preference and 18% did not know).

On BPO expansion plans — 53% of the HR executives plan to expand their current outsourcing initiatives in HR and 40% of the F&A executives plan to expand scope within F&A.