The growth of offshore business process outsourcing

Sunday, January 31, 2010

In the evolving world of information technology, business process outsourcing and BPO, as it is called, quickly became the industry. E 'as the ideal solution is presented to minimize costs, but that all this color? Sometimes contractors make costly mistakes, as you can see below meet.

Contracts are awarded at a distance with almost no expense for insurance and employee benefits, not to mention the costs of running an office. The tasks most appropriateOutsourcing is typically back-office operations, such as billing and purchasing. Tasks outside the office of customer service, marketing and technical support, many companies prefer to take care of themselves.

Contract employees are often in a country other than the contractor. This is called outsourcing, and can lead to problems, the time difference and delay in communication, particularly among the countries where Internet infrastructure is not veryreliable.

The most important country for outsourcing are India (with a market share of 63%), Eastern Europe, the Philippines and South Africa, with China a new driver in the race with the West, the cost of labor supply of labor . These countries represent a natural choice as the strong presence of English and low labor costs that are a tenth of what a worker from the same country as the supplier of the load. IndiaBut it seems that slowly begins to loosen the control of the sector, fell by seven percentage points over last year, while BPO is generally expected to grow further. The transfer of risks to the outsourcing service provider is an interesting perspective, but the range of services we can offer is limited. Processes such as human resources, finance and management are too complex to be offered on this basis. The BPO market is expected to increase by 146 million dollarsIn 2008, transaction services, albeit in a fragmented market en masse, individual processes, shared and vertical applications.

So what is the experience of the taxpayer that? Many companies are experimenting with the rigidity of BPO contracts, management problems and erratic. Some tasks that are expensive to manage at home are offered only temporary, because the struggle of the doubts about the ability to perform complex control problemsThe quality of the processes remotely.

The most likely candidates for outsourcing are repetitive, transaction-intensive processes, although many companies are unwilling to take control of the process because of risks for the security or check. Practical ways to internalize here or offshore shared service centers. The most dynamic sector of the market for BPO is simply as a wholesale operation, which was defined for 58 million U.S. dollars in 2008. This segment includesthe simplest tasks for the monitoring of suppliers, operations of Commons as the transformation of the credit card.

All Shared Services 57 million, the second most important sector for the year 2008, namely, finance, administration and personnel. Smaller area and the vertical high-volume process, with an estimated volume of 6 billion dollars in 2008. You can contact for further information on the process of outsourcing http://www.business-process-outsourcing-guide.com.

SmallestCurrently there are about 5 billion dollars will go niche vertical applications, although this segment has provided a big boost if the customer is familiar with the movement in these areas, take place in 24 billion dollars in 2008. These applications are complex processes such as communication of environmental data and monitoring of chemical processes, issues that require a high level of competence.

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