Rapid change sweeps over Finance BPO sector

The good news is that the number of finance BPO services being signed is increasing at a rapid rate of around 30% (Deloitte Consulting Outsourcing Advisory Services Analysis). And furthermore, the highlight of the advancement is that not only the FORTUNE 100 brands are holding the torch but the smaller companies have started moving down the path. Even though the growth has been expected, there are certain key factors contributing to the accelerating rate of finance BPO services.

Analysts suggest that the emergence of the middle market have contributed largely to the growth rate of finance BPO engagements. Strong bonds of contracts have been established as a result of increasing proportion of mid size projects taking place. The trend is expected to continue for the following years which would enhance the BPO sector. 

Now the second factor contributing to the success of the BPO sector can be the shift to on-sourcing and off shoring. Many large companies with a firm ground in the BPO sector have been adopting small scope establishments to enhance their sourcing mix. Moreover the rapidly growing off shoring industry has become a commodity and the operations are handed over to small scale service providers. 

Thirdly many companies have been adapting the volume based pricing in the way in which the finance BPO contracts are priced. Following the labor arbitrage in the sector, many service providers are moving towards gain sharing. This means the suppliers are pricing for the services based on variable inputs like transaction volumes. Also in this way, the provider gets the profit from the gains accumulated from the efficiencies achieved.