How BPM outsourcing can help high-tech ISVs combat challenges

There is an explosion in the number of independent software vendors (ISVs), projected to touch 1 million by 2027. Selling software is becoming more lucrative and easier for those who are ready to transform their services – for instance, by developing and selling subscriptions in a software as a service (SaaS) model. ISV leadership should focus on building ground-breaking innovations into their utility software as well as enterprise solutions (CRM and ERP) to maintain the competitive edge.

Challenges ISVs are facing today

  1. Cloud computing:

    In cloud, there are multiple options to choose from—private cloud, modified on-premises infrastructure, hybrid cloud, or public cloud (e.g., AWS or Azure). Qualitative as well as quantitative factors could influence this decision. Qualitative factors include cybersecurity, compliance, ease of availability, and ease of use. Quantitative factors include computing power, network, storage, support, and software licensing.
  2. Automation:

    ISVs who provide automated software updates and policy deployment can be a step ahead from their competition. For cloud-based applications, high availability is key to retain customers.
  3. User experience:

    User experience is extremely important today. Customers expect applications to be holistic and have high interoperability and responsiveness. Experience-focused embedded analytics can assist in enhancing UX, increasing revenue, and staying competitive.
  4. Financial implications:

    Developing a pricing model that matches the customer expectation is vital. This pricing model should be such that the customer sees the value proposition over the cost, is willing to pay, and is aware of any legal liabilities. The pricing model can be either pay-per-use or perpetual. ISVs have to also consider revenue collection processes, sales incentives, and market reputation.
  5. Development platforms and enterprise adoption:

    Infrastructure as a service (IaaS) (e.g., Microsoft Azure and AWS) is gaining popularity with ISVs, but it is a challenge to train development teams on new technologies. The employees can be reluctant to adopt new platforms, causing delays and business loss.
  6. Sourcing your goods and services:

    As an ISV start-up, an organization may be making ad-hoc decisions on choosing suppliers for goods and services. This can lead to an unnecessary increase in the supplier base. Lack of a robust strategy for supplier and procurement management can quickly make your organization trail behind.

Why must ISVs evolve?

ISVs are increasingly facing challenges in differentiating themselves from their competitors, staying relevant in the market, retaining customers, and gaining new business. To keep up with these challenges, ISVs must go through a technological and business evolution.

Small start-ups can embrace business process agility, go mobile, deploy applications faster using third-party APIs, and build using open-source code. On the other hand, for an established organization, such a transformation could be tough because they may have to disrupt well-oiled processes and sacrifice existing revenue streams.

Therefore, ISVs require a robust decision-making model to evolve in this fast-changing environment.

How can outsourcing partners help?

ISVs need next-generation solutions, knowledge portals, and virtual assistance across finance and accounting, customer service, and sales and fulfilment. High-tech ISVs need agile and flexible business models to remain relevant and for quick turnaround times.

ISVs can leverage Infosys’s Progress Progression Model (PPM) to generate insights, deploy new technologies, and deliver best-in-class results. With the help of PPM, ISVs can quickly scale up their operations to large volumes and ensure that the required regulatory, legal, and compliance requirements are met.

Capabilities and offerings provided by outsourcing partners

  1. Customer service:

    An ISV must manage the customer touchpoints effectively across the lifecycle of their products. With a trusted BPM partner, ISVs can adopt digital capabilities that redefine end-to-end customer experience with enhanced self-service, transparency, analytics, and advanced technologies. Outsourcing of customer service includes contact centre consulting, support services, and more.
  2. Finance & accounting:

    CFOs are under constant pressure to cut down costs, reduce financial risks, report financials effectively, and ensure compliance. The financial support services to drive functional transformation harness digital innovations to build integrated, agile, adaptive, and resilient finance operations.
  3. Human resources:

    Your BPM partner should provide integrated consulting, technology, and outsourcing solutions tailored to your specific HR needs. A customized HRO roadmap can enhance the employee experience and improve work efficiency, while achieving operational, legal, and compliance goals.
  4. Legal processes:

    The BPM legal services collaborate with general counsels, CPOs, CIOs, and law firms to standardize and automate legal tasks. Some of the BPM LPM (legal process management) differentiators are:
    • AI-integrated tech solutions
    • Onshore/nearshore/offshore capabilities
    • Optimized cost model
    • eDiscovery (providing a rich expertise in the evidence life cycle)
    • Extended arm that can act as an external attorney or law firm
  5. Sourcing and procurement:

    AI-based capabilities provide faster decision making in sourcing and procurement of goods and services. Capabilities such as CPO dashboards and technologies like robotic process automation (RPA) can help ISVs stay ahead in the game.
  6. Sales and fulfilment:

    Business development process for an ISV can be quite an intricate process involving marketing, pre-sales, and sales teams. The outsourcing helps ISVs with account planning, customer research and profiling, and customized pursuit plans to ensure that the revenue targets are consistently exceeded.
  7. Digital interactive services:

    This provides a tool-agnostic and process-centric approach for content management, creative design, multi-channel marketing, social media services, and digital analytics. It provides a centralized operations framework and scalable global delivery model to enhance customer experience.


With growing competition, lower profit margins, higher customer expectations, and fast-changing technology, ISVs must learn and adapt to remain relevant. Even established ISVs may not possess the entire skill set of managing all aspects of the business, such as processes, technology, HR, and sourcing & procurement. The services of an experienced outsourcing team can help ISVs overcome the challenges they face today.

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