Insurance BPO to be in limelight very soon

It is a known fact that the call center services outsourcing and telemarketing services outsourcing industry have always ruled the roost in the outsourcing sector. And the insurance BPO has had lagged behind these dominant players. However, recent trends suggest that the insurance process outsourcing industry is fast catching up and is set to outsmart many of the contemporaries in the near future.

The insurance process outsourcing industry promises a bright future as it has already achieved the distinction of being the fastest growing outsourcing sector. The compound annual growth rate (CAGR) marked by the sector is approximately 32.9% and this is actually a good sign (telegenisys.com). Nonetheless the critics may argue that most part of the growth is contributed to onshore outsourcing and only 10% from offshore. But even this pattern reveals that there is plenty of scope for offshore outsourcing. It is just a matter of time before the inevitable happens as the current scenario is favoring offshore insurance BPO services. 

The insurance BPO industry is all set to become a leading player in the world wide outsourcing market since it is expected to generate revenues worth billions by next financial year globally. However for conquering the market, it has to overcome certain hurdles like cultural barriers, legal compliance issues, risk management etc. 

Many offshore insurance process outsourcing firms have put in efforts to rectify critical issues like infrastructure modernization, cross culture training, date security and many others. All these efforts are helping build a better brand image and allowing offshore insurance process outsourcing firms to establish themselves and compete with onshore outsourcing firms.

DM Services Outsourcing Is Always On The Move

Outsourcing has flourished everywhere with the DM service outsourcing becoming more sought after. Even though they have become quite popular, there is plenty left to be achieved. There are certain factors that hamper the growth of data management outsourcing further like the belief that only large businesses can go for DM services outsourcing. However with many small scale companies benefiting from DM services, this myth has been debunked.

Nevertheless there are some other factors that have emerged as hindrances for the growth of outsourcing of DM services. The fear that the prevailing recessionary trends will escalate and completely annihilate the industry is constantly affecting the sector. Many businesses who have already outsourced their task believe that if recession strikes back fiercely, they may find it difficult to transfer outsourced processes back to the onshore location. This fear is continuously holding back the business. 

But DM services outsourcing had already proven the credibility as the basic necessities like cost reductions and efficiency and accuracy improvements have always followed the sector. These basic needs will prevail as long as businesses are there. Since data management services outsourcing help in meeting those needs, the growth of the sector is always guaranteed.

Future of data entry outsourcing services shines brightly

Even though the data entry services outsourcing has faced a gloom following the recessionary trend, the highlight many critics have missed is that the business have already approved billions of dollars for essential BPO services over the years. Critics like to point towards the financial data entry outsourcing services as it has faced a downturn but the entire data entry services sector is still a sought after service. Mere survival of many companies has become a big issue after the fall of some financial giants and hence more businesses are making their preferences felt for time tested techniques like outsourcing esp data entry. 

The data entry services outsourcing is not facing any immediate risk; however the industry skippers are implementing proactive steps to counter all potential threats that are expected to arise in the near future. Precautionary steps like increasing their reliance on newer, more efficient and more cost effective technologies and systems are in fact helping them to achieve and deliver improved results for their client businesses. Although the roads ahead for data entry outsourcing services are not as smooth as it was, it is sure that they will survive and emerge as winners. In fact they would even help the clients businesses achieve similar results.

Industry today, be in any sector has been facing challenges and issues due to the financial crisis. However the right remedy for most problems and issues arising out of recessionary trends would be easy availability of advanced and affordable systems and technologies. Hence there is obviously bright light shown towards the data entry outsourcing services.

KPO Anticipate Growth in The Indian Market

The Business Process Outsourcing (BPO) has seen unambiguous growth in the Indian soil. Now the entire world is looking at India as the most sought after place for Knowledge Process Outsourcing (KPO). Many overseas companies have been eyeing Indian market for outsourcing their high tech knowledge based jobs. Same as in the case of BPO, benefits like operational cost saving, pool of talented workforce, infrastructure improvement and favorable government policies have been responsible for KPO to flourish in India. 

Today’s economy being knowledge economy, KPO is a continuous procedure of creation and dissemination of information by bringing together the information industry leaders to create knowledge and see meaning in information and its context. This information driven outsourcing is known as KPO. 

Experts suggest that the global KPO industry is expected to reach USD 17 billion of which almost 70% would be outsourced to India alone. Keeping this in mind, Indian KPO sector has already taken steps in employing highly educated and talented people and number of KPO professionals are expected to cross more than 2 lakh by next year compared to the current statistics. In fact the growth in the KPO segment would be higher than the BPO segment, reveals research. 

India has a large pool of knowledge workers in various sectors ranging from pharmacy, medicine, law, biotechnology, education and training and even intelligence services. This proves that not only Indian companies can handle software services but capable of almost anything. However, long term success of KPO in India largely depends on a holistic approach to the issue.

HR Business outsourcing gets a new face

Full spectrum outsourcing came into existence in the end of 90s and since then has left a mark in the HR BPO sector. Any process that includes the transfer of transactional elements of five or more major HR processes to an outsourcer at one time comes under the full spectrum outsourcing. On the whole, any company that gives the outsourcer control of any combination of HR functions, including benefits, health and welfare, performances, measurements and rewards technology and so on is making use of full spectrum. 

But recently the HR BPO sector has seen a drastic make over with radically transforming how HR services are delivered. Organization relying on the outsourcers sheds the burden of holding transactional, repetitive yet important but low vale added parts of HR and concentrate on the five essentials; sourcing, hiring, training, rewarding and developing human capital. According to Naomi Lee Bloom, an expert in the HR BPO industry, about 10% of Fortune 500 companies have some kind of HR BPO deal that covers full spectrum outsourcing. 

In fact many experts unanimously believe that HR BPO is the fastest growing segment of the overall business process outsourcing market. And henceforth it has become enormously competitive as many vendors are seeking the deal. Being a profit endearing industry, the outsourcing business has attracted a large number of vendors in the recent years and has been leading towards consolidation. Reason being this demand is mainly because HR BPO can lower the total cost of HR service delivery by 20% to 30% for the part of the service that is outsourced.

How India shines in BPO industry?

When it comes to a combination of wage levels, education, fluency in English and sheer numbers, India stands first in BPO industry around the globe. This is the reason why Indian BPO sector is always in demand even when it faces competition from other countries. 

Take the case of Philippines, which has been evolving as a strong competitor is good in English language and has a strong American accent and hence captures much of the voice based services. But coming to the IT skills, they are backward. On the other hand, countries like China, Russia and Eastern Europe have good IT skills, but they are very strong in English. Here India exceeds in language fluency as well as IT skills. 

Report suggests that India’s work pool consist of 200 people who are now 15 years or younger poised to enter its workforce in five years. By then the working age population will drop significantly in the US, Europe, Japan and China. Hence India is sure to shine in the field even in the years to come. Moreover India produces about half a million engineers every year. Even though South America and South Africa have BPO skills and time zone advantage, the Indian companies have set their delivery centers there even. In the current downturn, there are many midsized technology services in US and Europe that can be acquired at relatively low prices.