The current global recession hit most of the developing countried very badly, it may be a blessing for BPO industries in developing countries. Most of the global players cannot have high fixed costs when their revenues are going down,and that impacts their bottomline. So they will have to make their costs variable, which is keeping with the decrease in the revenue. Thus offshoring and outsourcing are the two top choices they have.For example, many BPO companies who handle mortgage business are doing well during this slowdown period. That’s because many homeowners are going for foreclosure.
BPO firms say there is indication that client companies are finishing up their internal evaluation process. An per an industry analyst, once these companies finalize their issues, they are expected to offshore more than what they did in order to cut losses and stay competitive. This will result in larger outsourcing of business processes for Indian BPOs, says Mr Lokendra Tomar, Senior Vice-President, Knowledge Services, Integreon. Indian Firms like WNS, EXL, Steria and Quatrro are finding new opportunities as clients are adopting cost-cutting measures.
Outsourcing advisory firm EquaTerra reported that new areas for BPO such as knowledge process outsourcing service like engineering, research and development, analytics and legal process work, and financial modelling and analytics are getting momentum along with traditional BPO services of outsourced payroll and benefits, accounts receivables, and application infrastructure support.
PAC calculates that the worldwide market for IT-centred BPO services is running at the $65 billion mark, and expects it will hit a level of $82 billion by 2012.Filed under Business Process Outsourcing, Enterprise Services | Tags: Business Process, Knowledge process, Outsourcing, Recession | Comment Below