Business Process Outsourcing | MET

Future of Outsourcing in India

India presently occupies the top slot in the field of Business Process Outsourcing(BPO). However, it is doubtful how long will it be able to hold on to the spot as the smaller nations like the Philippines, Indonesia, Vietnam, Sri Lanka and other East European nations are eating up the share. Bangladesh is the latest addition to the league. As resources are available a cheap rate in the above-mentioned countries they are making a tremendous effort to increase their share in the global BPO market. The aspirations of the small countries have led to their stupendous growth. To know about best BPO companies or top BPO companies in Australia, you can refer to the recognised journals and reports.

Time will say whether India will be able to sustain in this competition and maintain its position in the global market. The leading nations are India, the Philippines, Malaysia, Brazil and Indonesia. China is leading the low-value services sector, whereas the Philippines leads the financial services division. It is also gaining projects in the fields of voice-based support, engineering and legal BPO. The gaming and animation services are taken care of mostly by Malaysia. Around 2% of financial services and voice related work have been transferred from India to the Philippines. Another 2%  has gone to the European nations.

India will continue to dominate the BPM space but there are reasons why the US and rest of the global firms will turn towards other destinations along with India.

For voice-based work, the Philippines is the preferred option due to a better voice/accent environment, though the services are costlier there. In a few cases, close proximity and time zones advantage near shore locations is chosen over India. Many firms believe that they are too depended on India, that might prove to be harmful to them in the case of natural disasters or massive currency swings.

Experts claim that it is true that a few nations like Mexico, Costa Rica, Europe and Poland have taken some share from India but the gains will level off as the resources are pricey than in India.

As per NASSCOM, around 1.1 million people work in Indian BPM industry. More than 500 companies in India are giving outsourcing services in 35 languages to more than 66 countries.

India’s position is eroding primarily because of two reasons: cost and niche expertise. The Philippines is known for its customer service delivery; Eastern Europe excels in IT and China in programming.

Points To Remember:

India is the leader in BPM industry with 36% global share.

Around 1.1 million people are a part of BPM industry in India.

Around 200 MNCs are operational outside India in this industry.

During the current fiscal 2016-17, Indian BPM industry has grown at a rate of 8.1%. (at $28 billion)

In 2015-16, global industry recorded a growth 3.1%. (at $186 billion)

It is projected that Indian BPM industry will grow at a rate of 8-10% and yield $54 billion by 2025.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Process Outsourcing Trends in the UK

As per the new figures, the annual value of outsourcing contracts did hit a record level in the first three months of 2017. The UK is the world’s largest market after the US. ISG or International Service Group clearly indicated that the UK makes up for around 80% of all contracts across the major European nations.

The outsourcing industry is considered to be an imperative part of the UK economy. Brexit did slow down the European outsourcing process but it will not really stop the process. The reasons are stated below:

UK’s market is ripe for outsourcing. Business Process Outsourcing in the UK is growing and the major changes in the market include, shift to cloud and automation

The only change that Brexit will bring in is automation that will lead to more savings than labor arbitrage

Traditionally considered to be the arena of bigger businesses, smaller companies and startups are also outsourcing many of their in-house jobs. Experts say that few things should not be outsourced by startups. Choosing the right provider is not an easy task.The core activities to which your reputation is linked should never be handed over to a third-party.

The key elements of customer support should be in your hands so that the people of your organization directly get to know the problems which customers are facing.

Kathryn Moran, head of outsourcing at accountants haysmacintyre, says small and medium-sized enterprises (SMEs) should research a minimum of three providers before making a decision and should then arrange to test services and agree on fees and timescales. Kathryn Moran, head of outsourcing at accountancy firm haysmacintyre, adds: “We have seen a general shift in SMEs realizing that outsourcing is now a crit – local part of the risk management toolkit, rather than simply a means to save costs. Outsourcing provides today’s SME with a breadth of skill base and expertise not generally available to them in a single hire. “Tony Price, PwC partner, Tony Price, PwC partner and My Financepartner leader, says SMEs and startups should talk to peers about which providers they are with and ensure prospective providers have good references from existing clients. An entrepreneur such as Helen Rolfe, owner of tablet accessories company Lente Designs, says providers have been proactive, but careful consideration is needed to find the right partner. “Over the years, people had been calling and talking about products – they found us,” says Ms. Rolfe, who uses Fulfilment by Amazon for logistics and shipping within the UK and overseas. Those who consider outsourcing to providers based abroad may have to contend with some different challenges than those who choose onshore firms. “Foreign firms continue to offer competitive pricing where their employment costs are lower,” says Ms. Moran. “However, the advent and advances in technology have meant that some of these services are now accessible by SMEs in the UK, as price points have changed with efficiencies gained through technology. “Ultimately, SMEs now have ready access to a wide range of outsourcing solutions both at home and overseas,” she says. “Language and culture continue to be considerations for the SME, and we have seen some foreign firms responding to this by investing heavily in the training of their own workforce.”

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MET Technologies is to acquire positive business driven outputs and quality solutions for each and every client.

Major IT Outsourcing trends to watch out for in 2017

IT outsourcing industry has grown rapidly in the past decade. Though this industry began with small IT call centres in the South Asian nations like India and Bangladesh presently it is a multi-trillion dollar company. Back in 1990’s the Business process outsourcing model emerged but it was fighting for mass acceptance. Due to the shortage of skilled workforce in U.S. for converting the code to the new date structure enterprises could not accomplish the work by January 2000. Hence, they were forced to look around and primarily concentrated on India to get the work done. This event finally sanctioned the adoption of Business Process Outsourcing model in a huge way and since then this industry has grown in leaps and bounds. The major IT outsourcing trends to watch out for in 2017 includes:

Trump Bump

US president Donald Trump’s policies to protect the US economy will adversely affect the outsourcing industry. Trump has clearly declared that all the policies on trade, taxes, immigration, foreign affairs will be targeted to benefit American workers and families. The promises made by Trump in the election campaign, which shook the world are as follows:

•    Penalizing the companies that will move their work offshore by heavily taxing them
•    A cultural environment favorable for excluding the companies keeping their work offshore will be developed
•    Major changes in immigration laws will challenge the prevalent labor outsourcing model which presently utilizes H-1B and L-1 visas for landed, in-country outsourced resources.

If the above-mentioned policies are strictly imposed then the outsourcing model will become much more expensive, hence unattractive.

Hybrid Cloud

Hybrid Cloud is another major IT outsourcing trend. It basically refers to integrated cloud service, which utilizes both public and private clouds to deliver specific functions for one organization. This ultimately gives quick access to users via the public cloud and more secure access to the private cloud. Gradually more companies will concentrate on striking a balance between private and public cloud solution and look into concerns like data and system integration, IT governance, data security and system portability.

Quality Centered Approach

The major outsourcing companies primarily American companies are choosing their vendors wisely due to the policies adopted by Trump. Many enterprises are moving from the fixed-price contractual model to local specialists and outcome-based contracts. They are looking for skilled teams who can work in an agile framework. 

Intelligent Automation

Intelligent and Robotic Process automation will disrupt existing outsourcing markets and drive down the market cost. Automation will lead to greater revenue, supplier margin expansion, the need for enterprises to rework on the existing outsourcing deals and the great divide between ‘haves’ and ‘have-nots’ in the global marketplace. 

Security is the primary concern

Data security will continue to be the most important concern of 2017. Traction for security automation, intelligence threat, and security solutions will continue to grow strong as enterprises concentrate on a holistic approach for fighting against security issues and reduce business risks. Vendors will play a major role in preventing the rise of security threats with their offerings.

MET

MET Technologies is to acquire positive business driven outputs and quality solutions for each and every client.

BPO Strikes an Edge as the Fastest Growing Sector of ITES

BPO or Business Process Outsourcing is the fastest growing section of ITES or Information Technology Enabled Services industry. Several factors are instrumental in leading to the growth and development of the BPO industry in India. The factors leading to this growth and development can be listed as

• Business risk mitigation

• Cost advantage

• Superior competence

• Utilization improvement

BPO Sector is One of the Largest Employers

A Union Minister claimed that BPO or Business Process Outsourcing is the fastest growing sectors and it has significant potential to offer service in the Indian languages as well. Owing to open market and demand for outsourcing, a large number of BPO companies are setting up their base in different parts of the nation. According to a report, the BPO industry employs as many as 0.7 million individuals across the nation. The BPO industry is an extremely lucrative career option for the fresh graduates as well as the experienced professionals.

At a press meet, the former Chairman of NASSCOM, Mr. Rajendra Pawar pointed out, “The Indian IT companies are investing in building platforms and productised solutions to drive future growth opportunities. More importantly, the industry is expanding into newer geographies and verticals where the growth is 1.4 time that in the mature markets. Emergence of a vibrant start-up product ecosystem creating solutions for India and the world also enhanced the product opportunity for India.”

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Let us take a look at a few factors that assisted BPO gain prominence in the Information Technology Enabled Services industry.

Cost Effective

India is formidably referred to as the hub for talented professionals. The companies can access the talents at a comparatively low cost. The BPO services in India handle as much as 58% of the business process outsourcing of the world.

Availability of Latest Technology

Advancements made in modern technology facilitated the increase in outsourcing in the last decade. The latest infrastructure and technologies are used in India thereby ensuring faster delivery. The usage of latest technologies also ensures error free service. The security is not compromised either. The companies outsourcing can rest assured that the information shared will remain secure.

Serves as Source for Employment

The employment generation figures in the BPO industry are quite impressive. This industry has directly employed 2.2 million people and the figure for indirect employment stands at 8 million. The figures are anticipated to reach 10 and 20 million, respectively by 2020.

The BPO industry is not just the fastest growing sector of ITES, but it has also made significant contributions to the growth story by inventing, reinventing as well as transforming itself. The BPO industry has cast a significant effect on the society and the Indian economy, significantly more than other sectors and within a very short span of time. Moreover, it has a significant role to play in helping India grow as a global force, narrowing down the multiple divides that separate the society. The role of BPO in helping India grow economically has been significant, especially in the course of last few years that witnessed an upsurge in outsourcing work especially among the western countries. Several factors are responsible behind intensification of foreign investment through BPOs.

• Skill set of the Indian workforce

• Emphasis on quality service

• Availability of quality products

• Cost efficiency

The Indian BPO industry has come quite a long way offering top-notch services for both the domestic as well as the international market. Go ahead and dare to be different from your competitors accessing the service of skilled professionals at an affordable price.

MET

MET Technologies is to acquire positive business driven outputs and quality solutions for each and every client.

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