0% found this document useful (0 votes)
105 views11 pages

Bpo Deteils

BPO refers to outsourcing business processes and tasks to third-party service providers to reduce costs and improve efficiency. India has become a major global hub for BPO due to its large skilled workforce and growing infrastructure. Key BPO services provided in India include call centers, finance and accounting, research and analysis, and medical transcription. As the Indian BPO industry matures, companies are offering higher value services requiring greater expertise in specific industry domains or business functions.

Uploaded by

nikkhilagarwala
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
105 views11 pages

Bpo Deteils

BPO refers to outsourcing business processes and tasks to third-party service providers to reduce costs and improve efficiency. India has become a major global hub for BPO due to its large skilled workforce and growing infrastructure. Key BPO services provided in India include call centers, finance and accounting, research and analysis, and medical transcription. As the Indian BPO industry matures, companies are offering higher value services requiring greater expertise in specific industry domains or business functions.

Uploaded by

nikkhilagarwala
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 11

What is BPO?

BPO is the contracting of a business task to a third party service provider. Back-office outsourcing
refers to internal business functions like billing or purchasing, while front-office outsourcing includes
customer-related services such as technical support, marketing and customer service. The focus in
BPO is on reducing transaction costs, optimizing process efficiency and providing size and scale to
handle a large volume of transaction processing engagements.
At Outsource2india we offer a range of BPO Services such as, call center services, data entry
services, engineering services, financial services, creative services, web analytics services,
healthcare services, photo editing services, software development, Research and Analysis
services and a host of other additional services.
BPO: so what's new?
BPO is as old as business itself. Businesses have outsourced their distribution or marketing to third
parties for centuries. It is the opening up of the global economy that has catalyzed the growth of BPO
to its present stature as a key driver of business competitiveness.
The roadmap for outsourcing success has been laid with:

 Quality processes
 Scalability
 Integration of global markets
 Seamless global delivery of work across borders through the internet

BPO by any other name


Today Business Process Outsourcing is known by many other names, among the popular marketing
terms being: sourcing, global outsourcing, right sourcing, rightshoring, nearshoring, bestshoring,
offshoring. Whatever the business world chooses to call it, business process outsourcing is a
proven management strategy helping businesses survive and thrive in the boundary-less global
economy.
Outsource BPO services to Outsource2india and take advantage of the benefits of offshore
outsourcing.
India - the world's preferred BPO destination
India has won its spurs as the world's outsourcing destination of choice. Currently the country has a
commanding share of the global outsourcing market.
The Union Communications and Information Technology Ministry in India states that the Indian IT-BPO
sector is likely to achieve a target of USD 60 billion in export revenues by 2010.
Services outsourced to India include the functions within administrative support, inbound call
center services, technical support, document processing, financial and accounting Services,
intellectual property research and documentation, supply chain management, legal services,
regulatory compliance documentation, medical transcription, payroll processing services,
sales and marketing, publishing, research and analysis, security, infrastructure and facilities
management, human resource management and training. the list goes on.
Outsource your business processes to India. Contact Outsource2india now.
Evolution of the BPO industry in India
India's BPO industry has evolved and matured to present higher-end services that require judgment-
based analysis and domain expertise, rather than function-specific, rules-based performance
parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into
different segments. At one end of the spectrum is the traditional rules-based transactional
outsourcing; while at the other end is judgment-based transaction processing and full-service
business process outsourcing.
India has competencies in all the segments. Some BPO service providers have developed vendor-
centric business models where they offer specialized services under one roof by representing the
services of multiple specializing in different verticals. Others are niche players that have adopted
vertical-specific models to address the needs of a specific industry, such as healthcare or insurance.
Outsource BPO services to Outsource2india and get access to specialized services that can
increase your revenue and reduce your operating costs!
BPO horizontals and verticals
BPO horizontals are function-specific and could spread across different industry domains. Payroll
processing services, data processing services and tax solutions are examples of horizontal BPO.
Vertical BPO concentrates on functional services in specific industry domains such as manufacturing,
retail, financial services and healthcare.
Captive and third-party players
Captive Offshore Delivery Centers or CODCs in India have been pioneered by large multinational
companies (MNCs) like GE Capital and British Airways, Dell and American Express among others to
maintain control and ownership over core or mission-critical outsourced business process as well as
over proprietary or competitive knowledge.
Third-party outsourcing service providers give captives a run for their money as they offer the
advantages of lower costs, flexibility and competitive pricing while maintaining quality standards.
BPO business models
The BPO industry features five business models:

1. The global delivery model - also called blended outsourcing, combines onsite, offsite,
onshore, and offshore resources. Large multinational outsourcing service providers offer this model
where work can be "bestshored" or "multishored" to the location where optimal cost and labor
efficiencies are met to predetermined performance standards. In case of a disaster in a particular
region, work can be immediately transferred to another region to ensure on-going, interruption-free
business processes.
Leverage O2I's global delivery model for outsourcing success. Contact Outsource2india
now.

2. The hybrid model or dual-shore model leverages onsite-offshore efficiencies to delivers


results to clients at reduced costs. Clients are involved in the process as the Global team of the
offshore vendor works onsite alongside the client's team to perform around 20% of the work while
the Local team executes 80% of the work offshore to leverage the cost, labor and time-zone
advantages of outsourcing.

3. The offshore multi-sourcing model or hub-and-spoke model uses multiple offshore


suppliers to offset the risk of a single monopoly supplier. Users of this model typically have their
own offshore operations, plus three or more partner outsourcing vendors with whom they
collaborate. The partners get first-hand training on how the outsourcing company operates its hub
center, and then apply their learning at the spoke centers.

4. The build-operate-transfer or BOT model


The client partners with an offshore company to set up and operate a foreign outsourcing subsidiary
with the option to transfer ownership back to the client company after a specified time period. The
risks of setting up an outsourcing subsidiary in a foreign country are completely borne by the
partner company which takes care of the costs and ownership of the new venture until such time as
the client chooses to take it over.
5. The global shared services model
Global shared services centers, also called offshore insourcing or captive centers create huge
service enters from the company's internal service operations resources. They also have assured
markets for their services. These centers can be run as independent businesses and have the
advantages of a similar corporate culture, with less of the control issues that third-party BPOs face.

The differentiator: adding value


Indian BPOs are moving up the value chain to offer higher-end services, end-to-end business process
outsourcing and domain-specific expertise. This has given rise to segments like Research and
Analysis outsourcing, LPO (legal process outsourcing) ESO (Engineering Services Outsourcing),
HRO (Human Resource Outsourcing), RPO (Research Process Outsourcing), MBPO (Medical
Business Process Outsourcing), FAO (Finance and Accounts Outsourcing) and more. The list
will only get longer as outsourcing service providers get more specialized in their offerings.
Check out Outsource2india's capability in ESO (Engineering Services Outsourcing), Research
and Analysis Outsourcing, MBPO (Medical Business Process Outsourcing) and FAO (Finance &
Accounts Outsourcing).
Outsource to Outsource2india and benefit from expert, skilled and competent BPO services.
Strategic BPO
Forward-looking global companies are using BPO in India as a business strategy to effectively meet
critical business challenges. Moving beyond commodity BPO services and support functions such as
voiced-based services and F&A support, BPO providers in India are offering a slew of high-end
business services to accelerate innovation and provide sustained value. These include complex
functions such as engineering design, equity research support, and pharma research.
Indian BPOs now assume full process management responsibility in processes like revenue cycle
management, to provide greater value in business verticals like healthcare and BFSI (banking,
financial services and insurance). This results in Business Transformation Outsourcing or BTO - a
strategic partnership between the customer and the outsourcing service provider with sophisticated
financing methods in place. The customer's firm acquires strategic stakes in the outsourced
operations, thus sharing risks and gains with the outsourcing service provider and creating increased
business worth for both partners.
Read more about strategic outsourcing that enables companies to achieve their enterprise-
wide strategic goals and focus on core competencies.
BPO vendors are using Business Intelligence (BI) to add value and achieve sustainable business
process improvement - to track and analyze trends and changes, to trigger appropriate management
action through alerts, to deliver targeted, on-time information, to increase revenues, to retain
customers, to reduce risks, to improve employee efficiency and productivity, to exceed SLAs, to
optimize processes, uncover new opportunities and help the business grow.
Objectives of Business Process Outsourcing
Companies that offshore their business processes to India are no longer looking at cost reduction
alone. They typically want to achieve:

1. Process improvement and efficiency - faster turnaround and greater productivity


2. Cost savings
3. Reduced head count
4. Improved quality - less errors/rework
5. Building/strengthening presence in a new market/foreign country
6. Increased focus on core competencies - e.g. developing new products or services
7. Building business value and strategic differentiation
All of the above add up to help these companies achieve increased competitiveness through BPO.
Outsource to Outsource2india and give your organization a competitive advantage with our
fast turnaround time, cost-effective services and increased productivity.
BPO buyer-supplier trends: working towards 'win-win'
Buyers and providers of outsourcing services are using sophisticated financial mechanisms and
business intelligence among other methods to achieve their outsourcing business objectives. Both
parties want to minimize risks, increase operational efficiencies and boost revenues. An integrated
approach helps achieve win-win solutions.
Buy-side

 Client-vendor relationships have matured to a collaborative, partnership approach to


offshoring
 When it comes to negotiating deals, clients prefer the BOT model (Build-Operate-Transfer) as
it mitigates risks and has a greater level of client control. Service providers too get a higher level of
profit margins
 Stringent SLAs specifying performance levels
 Exit clauses citing weak governance, infrastructure or security issues are some of the ways
that clients seek to cover risks
 A shift from buying commodity services to complete business solutions and better ways of
doing things

Sell-side

 Change management - cultural orientation, communication, transition process, transparency,


retention strategies for key personnel
 Geographic expansion
- Adding new infrastructure in Tier II cities in India, to attract new talent and achieve lower attrition
rates
- Partnering with companies in other countries to provide nearshoring/multi-shoring options
 A shift away from fixed-price models, as service providers offer bundled services or move
towards higher-end strategic processes. Thus a shift in focus from reducing costs to providing
greater business value.
 Greater focus on industry verticals and domain expertise (judgment-based services) rather
than function-specific, volume-driven processes driven by business rules.
 Greater cost control and cost reduction through efficient capacity utilization, cost planning and
training

Achieve win-win business process outsourcing solutions with Outsource2india.


Contact O2I now.
Outsourcing BPO Services to Outsource2india
At O2I, we provide high-quality BPO services that can tremendously increase your ROI, while reducing
your operating costs. You can also benefit from the skills, knowledge and experience of our
professional teams. Outsourcing can help your organization concentrate more on your core business
functions and you can save on time, effort, manpower and infrastructure. Outsource to O2I and
increase your business value.
We have to develop the human resource!
The human resource has to be developed in quantity and quality. Retention of the
employees, organization structure, managing client relationship, and strategies to increase
business are some other challenges being faced by the BPO industry.
The government of the southern Indian state of Karnataka, plans to have over 100,000
ready-to-employ candidates from its eight districts in the next 18 months to support the
states BPO industry.
As part of its plans, the state government would launch a BPO skills assessment program,
B-SAT, in its eight districts. B-SAT would aim at assessing a candidate's skills for a
career in the BPO industry, by providing a comprehensive feedback to candidates on their
capabilities and employability.
The program will cover areas including communication, listening, comprehension,
keyboard skills, written skills, numerical aptitude, analytical and reasoning capability and
mental aptitude. The government has already short-listed two assessment agencies to
oversee the procedures. The state hopes to create 40,000 potential call center agents in the
next couple of months with its new initiative.
According to the state’s IT secretary, "We are targeting to create 100,000 of employable
BPO agents in the next 18 months. By March 2005, we would have created half of this."
He further added that many BPO firms have agreed in writing that they would hire the
candidates who complete the B-SAT course successfully.
BPO – an avenue for cost efficiency and optimized delivery
Mr. Henry Schumacher- EVP, European Chamber of Commerce
Overview
Given the emotional debates in the US election campaign and the hype created by some
labor unions in Europe, it is essential to understand that outsourcing is not just about cost
cutting.
Leading companies in financial-services and other industries, for example, are using
offshore partnerships to do more than just cost cutting. They are taking advantage of the
distinctive skills and high performance offered by companies in developing economies to
enhance their own operating performance, outsource even vital business activities (such
as design of components), and accelerate their entry into adjacent product markets.
Outsourcing is a dynamic, rather than static, opportunity. Outsourcing is not limited to
low-skilled business activities. Outsourcing can lead to superior performance – even in
highly skilled activities – and a better platform for staying competitive at home and for
entering new product markets abroad.
Offshore outsourcing provides companies in the US, Europe and Australia with bigger
opportunities than merely sending low-value, labor-intensive activities abroad.
The size of the BPO market
Experts believe that the global BPO market will almost double between now and 2008,
reaching US$ 124 billion. The global market is still dominated by six US players – IBM,
Accenture, EDS, Affiliated Computer Services, Computer Sciences Corp. and HP. These
global players have competence centers around the world, including the Philippines.
The speed of outsourcing in Europe is picking up: 2003 was the year of the mega-deals.
(slide)
The drive toward offshore outsourcing continues to accelerate with forecast market
growth of 30% in 2004. Despite concerns over job losses, offshore services will become a
standard strategy item for enterprises in Europe. (slide)
According to Deloitte Research, 730,000 financial services jobs will migrate from
Western Europe between now and 2008.
The effect on Asia
Companies throughout the region have mainly been the beneficiaries of globalization and
the trend towards service outsourcing. Whether handling service calls from K.L.,
processing of checks in Shanghai, processing bill of ladings in Manila or diagnosing
network traffic from Bangalore, the move by companies to outsource ‘non-core’ activities
has proven a boon for many firms throughout Asia. Let’s look at some slides, covering
Outsourcing in Asia – Functions outsourced
Primary reasons for outsourcing
Benefits gained.
Historically, outsourcing has evolved from manufacturing / assembly in the sixties and
seventies, to IT infrastructure in the seventies, to application management and then to
business processes.
While companies typically looked at outsourcing as a means of cutting staff and costs,
the actual benefits in many cases are substantially greater. Companies outsourcing noncore
operations were able to not just reduce expenses, but also streamline their business
processes as well as free up resources to pursue more critical strategic objectives.
A company that is expanding wants to focus on growth, not record keeping or back office
operations.
But while many companies might turn to specialist firms to handle defined business
tasks, consultancies such as Accenture say they offer broad ‘end-to-end’ solutions rather
than a ‘point-by-point’ approach.
One of the largest outsourcing cases in Thailand, for instance, is a joint venture formed
by Siam Cement and Accenture. The joint venture offers enterprise business application
services, HR and payroll administration and call center servicing, with staff drawn from
both Accenture and Siam Cement. The joint venture not only provides services for the
Siam Cement group, but has since expanded to offer services to other clients.
A good example in the Philippines is the decision of Procter & Gamble to outsource their
HR administration worldwide to HP Philippines and to outsource their accounting
worldwide to IBM Philippines. Of course, both companies are not limiting their services
to P&G but offer their services to other clients around the world.
Some companies might start with outsourcing IT functions for a single business unit; but
once they realize the potential, then they look to expand the entire scope.
Cost savings of 30% to 50% are typical for an outsourcing contract, although not
immediately (the transaction cost are high and process handover takes time). The actual
benefits very much depend on the overall strategy and structure of the project. One needs
to know what one is trying to achieve. Outsourcing is a means to an end, not an end in
itself. It’s more like sharing a journey with someone else. Any project needs to carefully
define the services and expectations that would be required by the client from the
outsourcer.
Concerns about ‘loss of control’ can be managed by careful program design that
stipulates service levels and penalties for failing to meet standards. (slide)
But an even more successful approach is to adopt a broader control framework, one that
tailors objectives to help align the outsourcer’s objectives with those of the client. This
can be through control mechanisms where the outsourcer has employees and
management working directly at the company’s site. (slide)
Outsourcing is moving increasingly towards a ‘plug and play’ approach, where
standardized solutions are offered by a single outsourcer to multiple clients. It’s really
about solving a problem, about defining a strategic vision. People first thought of it as a
way of moving away from non-core operations; but now, the question is, am I the best
person to do this job? Is there someone else in the marketplace who can to it better?
Doesn’t it make more sense to make my back office somebody else’s front office?
We are only at the start of a major shift in the way work is done. Outsourcing, both
domestically and offshore, is likely to impact all of us.
Employees as craftsmen and specialists
Outsourcing is, first and foremost, about specialization. This specialization is taking place
at the organizational level and at the job level. For example, almost all net job increases
in information technology take place in the services side of the industry. We can
reasonably expect that, as the use of outsourcing continues to grow, every field will
develop its own specialty services firms and that a growing percentage of the specialists
who work in that field will work for those companies. As employees move into these
specialty firms, one very important change is that they go from working in a cost center
to working in a profit center. For the specialized firm, they are not a back-office
operation – they are a front-office operation. People at the front line have the opportunity
for greater rewards, but they also have more responsibilities and greater risks. Their work
directly affects the company’s customers and its revenue.
This suggests that the level of skills and knowledge expected of specialists will advance
at an accelerated pace.
Executives as integrators
Outsourcing also is changing the role of managers and executives. Their responsibilities
are increasingly shifting toward the kinds of integration skills associated with top general
managers, and away from the functional and operational expertise that characterized the
past. Mike Unseem of the Wharton School of Business was one of the first to capture this
change in quantifiable terms. He called it ‘lateral leadership’ and went on to identify four
capabilities that make a lateral leader – to be able to think strategically, make deals,
govern partnerships and manage change.
Greater use of outsourcing also leads to a greater focus on project leadership and process
leadership. Increasingly, the work of the business will be done by bringing together teams
of people, from across these multiple outside relationships, for the purpose of delivering a
specific result. These teams come together for the project at hand and then disband once
it’s done.
Networking risks
As outsourcing increases, organizations become increasingly interdependent. This
interdependence means that the risks to the organizations become interconnected as well.
The use of outside organizations does not eliminate the responsibility of an organization
and its board to ensure that the work done on its behalf is performed in a way that is
compliant to all applicable laws and industry regulations. This principle has already been
established in the banking industry through regulations and for health care through
SIPAA. Similarly, requirements in the areas of attestation of controls, accountability and
security need to be met internally but also through the company’s network of providers.
The network risk management concept represents just a starting point for the changes to
come. Outsourcing means interdependence. Interdependence means all organizations in
the network are dependent upon each other for their success. This is one of the great
organizational changes emerging through outsourcing. (slide)
A closer look at the Philippines
The Philippines has been a service provider for animation and for software for many
years. Companies like SVI have done BPO work for a long time. Caltex, for instance, has
been a pioneer in offering shared services. Others have followed, from Citicorp to IBM,
from HP to HSBC, from Accenture to AIG, from Henkel to SGS. But the country has
been weak in marketing its capabilities so far, at least in the direction of Europe.
However, the success of the call center industry during the last two years has been
overwhelming and the global call center, help desk, telemarketing industry is aware of
the Philippines now. We have about 25,000 seats today, employing close to 40,000
people. Predictions have been made that these numbers can double in twelve to eighteen
months – if we can deliver the talent requirement.
This first wave is of great interest because it puts the Philippines on the map as a
potential hub for BPO. While the companies mentioned earlier are already doing BPO for
their own companies or for the jobs IBM, Accenture or HP obtain worldwide, the local
industry is still small, with the exception of SVI and SPI. But with call center companies
looking at BPO and actively hunting for BPO jobs in Europe and the US already, we may
have the size of companies that can handle BPO, in future – provided we can deliver the
skilled employees.
What are the challenges to develop this country into a major BPO player?
Let’s start with a slide which shows how the world sees us (slide)
Our marketing has to improve!
We urgently need an umbrella organization as effective as Nasscom in India. Some two
years ago, we started ‘Outsource Philippines’ with initial success in the US and Europe.
Subsequently, we have created Business Processing Association of the Philippines
(BPA/P) which stills has to get its act together.
We have to develop the human resource!
The human resource has to be developed in quantity and quality. Retention of the
employees, organization structure, managing client relationship, and strategies to increase
business are some other challenges being faced by the BPO industry.
The government of the southern Indian state of Karnataka, plans to have over 100,000
ready-to-employ candidates from its eight districts in the next 18 months to support the
states BPO industry.
As part of its plans, the state government would launch a BPO skills assessment program,
B-SAT, in its eight districts. B-SAT would aim at assessing a candidate's skills for a
career in the BPO industry, by providing a comprehensive feedback to candidates on their
capabilities and employability.
The program will cover areas including communication, listening, comprehension,
keyboard skills, written skills, numerical aptitude, analytical and reasoning capability and
mental aptitude. The government has already short-listed two assessment agencies to
oversee the procedures. The state hopes to create 40,000 potential call center agents in the
next couple of months with its new initiative.
According to the state’s IT secretary, "We are targeting to create 100,000 of employable
BPO agents in the next 18 months. By March 2005, we would have created half of this."
He further added that many BPO firms have agreed in writing that they would hire the
candidates who complete the B-SAT course successfully.
We have started moving in this direction in the Philippines.
We have to focus on quality management and get companies and individuals
certified!
India is showing the way. Most of the Indian competition is CMMi certified; hardly any
companies in the Philippines. How can clients make a decision whether to outsource to
the Philippines or not if they are not sure that quality management methodology is
available?
The European Chamber and the European IT Service Center will introduce quality
management models and schemes (EFQM and TickIT) here, making use of programs cofinanced
by the European Commission.
_
We have to focus on information security!
Again, India is showing the way. Facing US political pressure, outsourcing companies
redouble the protection of clients’ information.
Nasscom, an association of Indian IT service providers, has decided to market India as a
'Trusted Sourcing' destination. The association aims to take India beyond a 'low cost' and
'high quality' service provider to a highly secured and trusted sourcing base.
Nasscom has engaged Ernst & Young (E&Y), a global consulting firm, to create a
security standard and framework, which will be implemented in all Nasscom member
companies. A regular audit will also be conducted by E&Y.
Nasscom is also in the process of forming a National Advisory Board and an
International Advisory Council to guide the Indian software and BPO sector on security
issues. The members of the board would belong to sectors including the government,
academe, technology vendors, consultants software and BPO sector started as a low cost
sourcing destination and moved on to become and user organizations.
According to Sangeeta Gupta, VP, Nasscom, "Indian a quality service provider in the last
few years. As India is expected to face competition from other countries on cost factor,
we need to keep moving up in the value chain by providing an extra value to customers."
Sangeeta further added that the 'Trusted Sourcing' initiative will also include a series of
events to be organized in India and other countries, focused primarily on security related
issues. Apart from marketing and public relation exercise in the US and other important
markets, Nasscom will also ensure that all of its members are following global practices
and standards of security.
According to experts attending the Gartner IT Security Summit in London, when it comes
to outsourcing IT operations to countries such as India and China, companies often focus
on slashing costs and gaining productivity, but fail to take into account cultural
differences that may affect their security.
Partha Iyengar, Research VP, Gartner India, termed India to be a solution for application
outsourcing, but a problem in the security space. Iyengar said that the real issue was not
the security measures used by service providers such as firewalls and data backup, but the
cultural differences.
Industry experts have warned that a relaxed attitude toward privacy could have serious
consequences when it comes to protecting corporate data. Outsourcing companies have
also been advised to train local staff to adhere to the company's global privacy standards
and to check into the risk of government interception of sensitive confidential
information.
Lawrence Lerner, Senior Technical Architect, Advanced Solutions Group, Cognizant,
also termed the real issues to be with respect to cultural differences and in compliance
and regulation.
High demand for outsourcing services has prompted Indian and Chinese services
providers to hire a large number of employees, which has also resulted in a weak security
system.
India’s largest IT companies are hiring thousands of new staffers every quarter in an
attempt to meet the surging outsourcing demand, a reality that adds to the security
challenge. At Wipro Spectramind Ltd. in New Dehli, one of India’s largest call center
operators, private security firms conduct background checks on potential hires who
would be handling sensitive information.
Wipro, which sometimes processes medical records and financial data, provides its
clients with a host of specialized security measures. Some of the most security-conscious
clients are asking that their corporate information remains on US-based servers.
In the Philippines, we urgently have to address this issue.
We need onshore presence in target markets!
Not only in the US, in Europe also. EITSC has done the first – small – steps by creating
EITSC units in the UK, Germany, the Netherlands and Switzerland.
We have to harness the ‘overseas Filipino professional’ as our extended sales force!
In the UK, we work with Filipinos who have invested their expertise and money into a
broker business for the outsourcing of IT-enabled services. Given the fact that there must
be 100,000s of Filipinos professionals overseas, it is high time that we identify them and
court them to become our extended sales force for all service industries, including the
new sector of wellness, healthcare and medical services.
In conclusion:
The business reasons for outsourcing appear persuasive, and the experience positive. Yet
some companies remain unconvinced. The main reason given for this is that process
automation is sometimes perceived as a viable alternative to BPO. But technology
optimization is only one facet of four improvement levers to pull: outsourcing economies
of scale, labor arbitrage, technology optimization and continuous process improvement.
BPO providers with core skills in technology and systems integration take the risk out of
implementing automation, and their investment in IT infrastructure is an inherent benefit
to BPO.
In addition, the fusion of BPO and IT Outsourcing (ITO) can enhance the benefits
available since process improvement is inextricably linked to application management.
Automating the back office processes with enterprise applications achieves straight
through processing (STP) efficiencies. Traditionally this links transactional and
operational systems underneath core business processes. By outsourcing the end-to-end
process together with the IT function, organizations can create new processes to increase
speed and information flow for management decision support. There are now an
increasing number of providers which can do this, and leverage services across multiple
processes and multiple clients.
Economic uncertainty persists, and despite steady improvements in markets, shareholder
and customer pressure will continue to put pressure on companies to change their back
office, to be free of constraining systems and business processes that are deeply
embedded into siloed business units or hard-wired to the past.
BPO offers enormous business opportunities for the Philippines. The Philippines has to
catch a large share of this new business model.

You might also like