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 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.