The BPO Then and Now..
The big idea of saving money by getting the work done from others originated in early 90's. The CFO's (chief financial officers) were keen on saving money on process which dint earn revenue to the organisation. The best example is the contact center, this part of the business needed investment, manpower and a lot of trainings to keep the service quality and hardly generated any revenue in measurable forms. This gave rise to the idea of outsourcing these tasks to the low cost areas mainly offshore places, where the labour cost is minimal and has the ability to adopt and develop the sort of talents necessary for the business. The companies dint have to do much investments for this. The word outsourcing itself did the magic for them in the developing countries. The entrepreneurs developed their own service models, governments offered tax savings and young generation fell in love with the service concept. Even though I have generalised a lot of things above but it is almost the same scenario that was seen by India or China.
The evolution of Business Process Outsourcing started mainly from India. India had the talent pool that was necessary and the mastery of Indians on English language by virtue of British rule made it convenient off shore option for westerns. Initially the call center process that was out sourced. Slowly the concept spread its wing to Finance and accounting services then to the Information technology support, then to HR support and if you see the state now, almost everything is outsourced by the companies except their core areas.
The madness of outsourcing has reached a different level today. Companies are not only looking for cost savings instead they are interested in process innovations and automations. Service providers are also keen on automations due to the never ending pressure of service buyers on cost reduction. The introduction of automation does not mean a huge impact on employment availabilities, just because if you are satisfying your customers and retaining them with you means lot more process coming to you and in turn generating revenue and employments. The service providers are in a real tough era as the buyers are looking for cost reductions and improved process automations. That means if a service provider cannot innovate then he is going to perish sooner. The key word for 2015 for service providers would be innovate and automate if you want be in the race.
Service companies are also looking for a near-shore destinations to move their process as the current locations are demanding more money outflow in the form of salary and taxes.
So finally to conclude, the concept still remains the same for BPO, i.e Cost savings but few more flavours are added to it in the form of automation and process innovations.
The evolution of Business Process Outsourcing started mainly from India. India had the talent pool that was necessary and the mastery of Indians on English language by virtue of British rule made it convenient off shore option for westerns. Initially the call center process that was out sourced. Slowly the concept spread its wing to Finance and accounting services then to the Information technology support, then to HR support and if you see the state now, almost everything is outsourced by the companies except their core areas.
The madness of outsourcing has reached a different level today. Companies are not only looking for cost savings instead they are interested in process innovations and automations. Service providers are also keen on automations due to the never ending pressure of service buyers on cost reduction. The introduction of automation does not mean a huge impact on employment availabilities, just because if you are satisfying your customers and retaining them with you means lot more process coming to you and in turn generating revenue and employments. The service providers are in a real tough era as the buyers are looking for cost reductions and improved process automations. That means if a service provider cannot innovate then he is going to perish sooner. The key word for 2015 for service providers would be innovate and automate if you want be in the race.
Service companies are also looking for a near-shore destinations to move their process as the current locations are demanding more money outflow in the form of salary and taxes.
So finally to conclude, the concept still remains the same for BPO, i.e Cost savings but few more flavours are added to it in the form of automation and process innovations.
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