Business process outsourcing is a process wherein a company outsources mostly non-core business activities to another firm and develops a close partnership with them. Today Business process outsourcing services have become a significant part of almost all businesses these days as they provide cost-effective solutions. Outsourcing business activities reduces the burden of work and helps business owners to concentrate on other core activities of the business. It also provides access to reliable and highly skilled talents.
BPO is also called Information Technology Enabled Service (ITES) and it can be divided into front office outsourcing and back office outsourcing. Back office outsourcing refers to outsourcing of back office functions such as quality assurance, data entry, data management, accounting support, processing of payment and so on. Front office outsourcing refers to outsourcing of front office functions like fax, email, phone conversations, and other forms of communication with customers etc. Another classification of outsourcing is based on geography i.e. onshore outsourcing, offshore outsourcing, and near shore outsourcing.
Business Process Outsourcing Market Trends 2019 – Evolution of Cloud-based Services
The latest trend is the evolution of cloud-based BPO services that offer flexibility and agility in IT service. With cloud-based BPO, businesses can get the advantages of scalability, agility, reliability and cost reduction. Therefore BFSI (Banking, Financial Service and Insurance) and healthcare businesses will adopt this new technology to improve disruptive productivity and business enablement. Enterprises such as Wipro and IBM are providing BPaaS solutions in the business process outsourcing market for analytical services. IBM uses BPaas solution that utilizes cloud computing and analytical technology to re-engineer the existing business processes of organizations. BPaaS solution helps in managing business critical functions like HR, marketing, finance and supply chain management.
Rising capacity of business data is one of the main reasons for driving the acceptance of business analytics BPO services. The growing need for customer analytics, modernization of business environments and surge in cloud-based deployment among SMEs is expected to improve the growth of business analytics BPO market. On the contrary, additional expenditure on training, IT infrastructure and implementation may result in limiting small and medium business with small budgets from the adoption of such solutions.
The global business process outsourcing market is divided into various sectors. Based on service, the BPO market is classified into finance & accounting, human resources, knowledge process outsourcing, procurement outsourcing & supply chain, customer services, and so on.On the basis of end user outlook, the business process outsourcing market is categorized as banking, financial services and insurance, healthcare, manufacturing, IT and telecommunication, retail and so on. The business process outsourcing market is widespread from North America, U.S., Latin America, Brazil, Mexico, Middle East & Africa, Canada, Europe, U.K., Germany, France, Asia Pacific, China, India, Japan, Singapore, Malaysia etc. The leading players are Accenture, HCL, Wipro, Capgemini and Amdocs.
Benefits of Outsourcing
- Minimized cost: One of the main reasons for outsourcing is to minimize cost. Business process outsourcing builds integrity of the business and also reduces cost without compromising on quality.
- Better productivity: BPO providers ensure that they work with the best technology and resources which promise better performance of the company and improved productivity of the employees in the organization.
- Focus on business: Outsourcing helps businesses to expand on the current products and services that are available and it also gives the opportunity to free up office staff to focus on core offerings.
- Access to technology resources and efficient staff: Another important advantage of outsourcing business processes is that it ensures that your company is in the right hands. You are ensured an experienced and skilled workforce as well as the latest technology, best practices and assets.
- Reassigning resources: A good business process outsourcing company helps you to reallocate resources, cut costs on task and use warehouse space for additional improvements.
Adopting business process outsourcing services can enable businesses to move up the value chain and provide higher order capabilities to customers. It provides access to employees who have excellent knowledge about the specific industry and this can add value in business transformation. The BPO sector is all set to improve further with the use of cloud-based technology.