BPO Trends 2010 : Business Process Outsourcing (BPO) Industry Trends

The decades overly own gone by own been defining moments in numerous ways for the economies in total and the BPO services in particular. They undergo made us realign our thinking, problem select convictions and relook at some issues. In all, we see some paradigm shifts which undergo enabled us to align to these kinds of realities. The times ahead are supposed to be still more challenging, capital scarce and we could need to modulate our strategies to consideration for the environment.

Trends height towards a greater IT adoption in retail, healthcare, telecom and BFSI (the banking, banking services and coverage vertical) and 80 percent of gain to come from new areas. BFSI contributes around 41 percent to the industry’s revenues. With BPOs moving up the class chain to provide these high-end services as business analytics and knowledge-based services in a mix of re-engineering skills, technology-enabled platforms, new talking models and increased depth of services, BPO exports are estimated to develop 6 per cent to $12.4 billion (over Rs. 57,000 crore).

Why off- shoring causes more sense now?
Traditionally, cost rationalization was a compelling reason for corporates to consider outsourcing/off-shoring in the first place. Post the economic downturn, it came back to making an important reason for corporates to revisit their strategy for off-shoring and impel it more aggressively.

With red shoots coming up in the boom scenario, proliferation of technology in the majority of sectors and an increasing large amount of of firms being offered global, Asia is witnessing a marked improve in IT spend. While Asia-Pacific constitutes regarding 10percent share of the whole intercontinental IT services market, IT spend in the region is rising at a much faster rate compared to the mature markets. IT spending is a precursor to IT and BPO outsourcing and Asia-Pacific ought to draw increased competition, making the fastest growing geography with an anticipated appreciation of 10 percent, according to a NASSCOM* report.

This year 2010, the key tendencies the current am able to impact the business projected forward, to my mind are:

Markets in Newer Geographies:
The U.S. and the UK undergo been a major income source for the BPO industry from the time of the genesis of currently industry. But now service providers are exploring markets in other global cities this as Europe, Australia, the Middle East and Asia Pacific. WNS on its portion has channelized its initiative into 3 spots – 1) US 2) UK & Europe, 3) Asia Pacific thereby reducing its dependency in a single geography.
Such moves by service providers hold come at time when prospective buyer base in these geographies has in addition seen a growth in maturity. It is without doubt which this year can witness aggressive moves by many service providers to tap that customer base.

Expanding the Distant Footprint:
BPO service providers are producing delivery centers around the world, often in newer nations, that provide a plentiful supply of educated but low-cost workers. WNS recently set up a delivery middle in Costa Rica, which is not a typical site for off-shoring, but then it is strategic in terms of its proximity to the US. There has moreover been expansion of WNS's delivery concentrates in Philippines, Romania, Sri Lanka and India. This footprint provides patrons tremendous flexibility in terms of cost, lingo capability, true tiny bit processing as greatly as access to Innovation networks driven by a partner.

Focus on mid-markets and SME's:
The off-shoring option for the mid-market businesses and the SME largely remains untapped. This could be possibly when we experience not reached out to the SME and the mid-market fraternity, to service them know how we may be partners of profit in the extended run.

KPO is another critical segment over which we can tap the opportunities available in this space. SME's and mid-market companies regularly depend on the patterns who can assistance them in understanding the industry better thereby create new arena models to tweak this cost as per short / for a while now term demands.

As we move forward, globalization is assured to constrict competition and this will encourage not only the large corporates but the mid-size firms and the SME's to revisit the strategy for off-shoring, push it more aggressively and thereby blessing in the long run.

Global Transformation Practice:
Knowledge Component is one of the multiple sought after quality addition in our space. Knowledge services these types of as analytics, legal services, consulting, amongst others if delivered among precision, adds excessive value to the client. This arms the service provider with signficant expertise to scale this extend and thereby winning the trust of their client.

In addition patrons prefer to be on the look out for providers with whom they can propel operational excellence, focus on middle business solutions, and swell end-to end solutions.

At WNS, we are now providing consulting and analytics to our patrons thereby making not just now trust but relationships as well. This is due to the occurence that knowledge services let the client to can identify its customers, its geographies/demographics, how to better its services/offer, thereby increase customer loyalty.

In our experience we discover this moment serves as an integral part additonally signing up new corporations as well.

Deep industry and sector process knowledge, comprehensive services offered and a verified track record enables WNS to deliver business value to the world's greatest businesses and continues to be our business proposition.

Business in Newer Segments:
With new business and vertical specialization, outsourcing will continue to raise both vertically and horizontally. Some patterns where new organizations undergo been introduced and are growing are crunches such as the litigation substantiation and document review work within the Legal vertical, and the collections business within finance in the BFSI segment.

A NASSCOM news story recently said overly boost in emerging verticals such as retail, healthcare and software should be higher and they are escalating three times faster as opposed to core verticals. Pharmaceuticals, biotechnology, and food, amid others are able to emerge as new sources of revenue as the BPO boom expands, and demand for value-added services will accelerate in the subsequently 5 years.

Many services that got not offshore previously serves to now open up; but volumes in pre&wshyp;existent services may in addition shrink. Though, total the consistent appreciation presents a smart picture as increasing cost pressures can ensure this off shoring is imperative.

Technology will drive the difference in the Industry:
Technology has ever carried on the trigger the current has driven tendencies in the industry, and technological furthers tending towards the green agenda are going to make 2010 a green year.

Green Computing is the buzzword today. Cost savings and gas efficiency making two sides of the same coin, will urge greater adoption for Green computing (or cloud computing) amid enterprises. Companies are now looking to consolidation of information focuses allowing for optimization of their power consumption.

One the technology WNS has adopted is virtualization, that is one stage towards cloud computing; it has been utilized in the information heart infrastructure in constructing a centralized data center. It has discernable positives in operational efficiency, data centre footprint and power consumption allow for better management and price efficiencies.

WNS's CIO award for two consecutive decades in a row is proof of the innovation within this sector.

Technology innovation in BPOs will provide truly "friendly technology" for self-help, enabling patrons to address their tribulations quickly. Social networking is a powerful, emerging tool for building customer care cities the current incorporate customer interface in addressing other client difficulties - the technology and platforms built for in essence personal and social interactions are catapulting to the next level to stand for the purpose of corporate interactions. Social networking platforms serve as a collaborative application for geographically dispersed teams to head up more closely. WNS has carried on exploring this platform to put up patron interfaces for collaborative operate around its geographies.

BPO's bring in Energy Efficiencies:
Becoming yellow is no longer a selection for any industry, establishments or individuals. The BPO business is looking to adopt green buildings, electricity miniature data centers, power efficient computers, shared data centers and e-waste management. I am guaranteed such a many large contracts will soon appear in on a carbon neutrality condition.

WNS is on its journey to carbon neutrality and we undergo a concrete emission decrease plan. WNS’s Green Lean Sigma plan launched in Jan 2008 to spread the message of 'be observed living green', has from the time had 'Green teams' aggressively promoting the WNS vision of carbon neutrality. Apart based on producing sensitivity to the environment, we have worth management systems to ensure surroundings conformance, and experience adopted tangible measures in the form of rain water harvesting, energy conservation, saving paper, saving water, managing waste, clean air and clean land, tree plantation, owning a village. Concurrently, more than a 100 green projects are running across locations, promoting innovative innovations on dwindling our carbon footprint to ensure our promise is fulfilled. Every new employee who joins WNS takes pledge to comply by WNS's red promise.

And the offer advantage remains relevant at all times:
When one of the world's most major online travel companies rapidly needed to reduce the market values of its purchaser attention and finance and accounting operations, they turned to boom system outsourcing, partnering among WNS. By leveraging the correctly onshore and offshore model, WNS delivered $3 million in savings right to the bottom succession within the first quarter of going live. After ramping up the operations to over 1,000 people in a reduced number of than nine months, WNS delivered cost savings of more than 30 percent on the base run rate.

Where do we go based on here?:
To wrap up the BPO industries character is driven by Technology, Talent (availability), Global Policies, Cost Efficiencies, and of course The Demand for (value-added) Services.

These drivers govern step up across markets/geographies and in a variety of new services. A NASSCOM prediction just recently additionally said so Infrastructure services could moreover be a key growth driver for the industry with an estimated rise of 10.5 per cent in the next fiscal.

India is the world's uppermost offshore outsourcing center, with 2.3 million those in India employed in the IT-ITeS industry.

NASSCOM estimates such a the industry ought to employ 150,000 homeowners the year, and the domestic market is able to witness 12 percent inflation this year and might reach Rs. 66,200 crore. The growth number has carried on estimated at 5.5 percent, on the coming back of increased cost efficiencies, deployment prices and diversification into new verticals. Direct employment in the Indian IT-BPO sector is estimated to cross 2.3 million, additonally indirect job production is guessed to reach 8.2 million.
Source:http://www.siliconindia.com/guestcontributor/guestarticle/310/Current_BPO_Industry_Trends_2010__Keshav_Murugesh.html