BPO Industry Insights

According to Grand View Research, The global business process outsourcing (BPO) market size was valued at USD 195.2 billion in 2017 and is expected to exhibit a CAGR of 7.4%. Players in the market are engaged in providing reliable and cost-effective services across various sectors such as BFSI, manufacturing, retail, IT and telecommunications, and healthcare. Companies operating in these industries prefer to incorporate business process outsourcing as part of their business strategy, in order to allow them to focus on their core competencies and ultimately increase their profitability.

Business activities of any organization are classified into critical, core, and non-core activities. Core activities are a company’s primary competencies that give it a strategic advantage, while critical operations require a specialized skill-set. Non-core activities are supporting operations that largely involve relationship management between consumers and products. Classifying these activities is vital in order to allocate resources appropriately to ensure timely delivery services. Nowadays, companies have begun placing greater emphasis on core activities with a view to maintain their market presence and expand their customer base. This has resulted in higher outsourcing of non-core activities.

Companies engaging in business process outsourcing can choose to outsource specific services or business functions based on individual requirements. These include payroll, IT, logistics, and legal services. Reduction in labor costs as well as reducing and/or eliminating overheads arising from human resource and equipment are some of the potential benefits of outsourcing.

Services such as training and recruitment require additional effort and time. Owing to this, some companies prefer to outsource human resources services. For instance, Accenture is one of the pioneers in offering human resources and finance and accounting services. The company’s HR services include workforce performance, recruitment, payroll, benefits and compensation, and several learning and employee services.

Here are some BPO industry reports and insights by Delloite, Time Doctor and other articles:

1. Vietnam has potential to become the next BPO giant
2. Vietnam emerging as the next outsourcing powerhouse
3. IT Outsourcing hotpot: Vietnam, a small but mighty powerhouse
4. Driving growth Business Process Outsourcing (BPO)
5. Business Process Outsourcing: 7 Trends to Expect in 2018