Change is Inevitable and BPO industry is no Exception

The Outsourcing business in India still leads the global IT outsourcing market and its advantages over other regions are distinct. Rising from the periphery to emerge as a viable, high-potential opportunity for the country's IT-BPO services sector, the Indian domestic market has undergone a transformation over the past decade. 

According to the government statistics, India continues to dominate global outsourcing market with market size estimated to be worth about $52 billion. Banking and financial services contribute nearly 40 percent to India's outsourcing industry. Even though the offshore outsourcing industry has been facing bottlenecks like cut-throat competition, severe shortages of trained and skilled manpower, more investment needed in infrastructure, need of higher level of control, maintenance of higher quality standards, the BPO service sector has slowly gone past the hurricanes smoothly. 

However, experts suggest that India's outsourcing industry is on the cusp of a significant change, shifting to knowledge-intensive and value-added services that call for a new way of functioning. In the global outsourcing market labour or cost arbitrage has been the constant concerns. But when it comes to outsourcing business in India, need to scale rapidly, greater focus on core competencies, enhanced productivity, heightened competition and reduced time to market that is driving domestic demand.

There now seems to be shift in the services that are outsourced. Earlier the not-so-important and tedious back office works were outsourced while now the outsourced services are now the areas that require experts. What has triggered the companies to search for experts to offload functions beyond their know-how is essentially the growing competition and market needs. This is not only helping organizations save time and gain value for money but also helping them scale up by capitalizing on their proficiency, says reports. To be precise, the Offshore BPO industry is standing at an interesting focus-shift point. BPO service providers are now adding the knowledge component into the mix in an attempt to deliver greater value.

Insurance outsourcing services and its offshoots

Most of the insurance companies are in constant run to meet their parameters like attaining customer satisfaction, operational effectiveness, and market advantage that will ultimately drive the bottom line. Subsequently insurance outsourcing services offers a convincing business model that insurance companies can rely upon any time. Generally insurance companies are constantly worried about customer retention since the market is highly competitive and differences in policy premiums are insignificant. They focus entirely on retaining the existing customers for a long time. 

It can be even said that the insurance industry has born out of the need to outsource one’s risks. Driven by increasing comfort with vendors and the need to reduce costs, the Business process outsourcing (BPO) is growing within the insurance industry. If you look at the insurance outsourcing services industry closely, you find that there is much scope for the Non – Voice BPO in insurance which classifies into non-core services and core insurance services. Specific operational areas like underwriting, policyholder and agent services, and claims come under the core insurance services and non-core services include areas such as HR and benefits administration, as well as enterprise services like property management and purchasing.