Initial boom in Indian BPO industry was largely limited to call centers and other back office work. As India comes a long way to establish itself as a quality service provider, the nature of tasks is growing both in sophistication and volume. One such promising area is Finance and Accounting outsourcing.
Globally,
outsourcing has been increasing over the years primarily
to derive benefits from the cost arbitrage. Outsourcing
has been on the rise for reasons like reducing costs,
freeing up of resources, avoiding capital expenditure,
improving efficiency, offloading non-core functions
and getting access to specialized service providers.
For ITenabled services, the world becomes the platform
for sourcing the services of personnel with requisite
skills and cost becomes the criterion. This led to most
of the companies in the West, especially in the US,
to outsource backoffice services, leading to the growth
of this industry. As with manufacturing, in the 1960s,
to South East Asian countries, a wave of outsourcing
is now underway in services, throwing up immense opportunities
worldwide for countries which can provide the services
at a lower cost.
Normally,
the core functions that are of strategic importance
are retained and non-core functions are outsourced.
Providers of non-core services, because of their focus
and specialization are able to provide quality services
at a lower cost. The key corporate functions that are
amenable for outsourcing are human resources, finance
and accounting, marketing and customer relationship,
engineering and R&D, administration etc. Of these
backoffice operations like HR, Finance & Accounting
(F&A), customer support and database management
have become major parts of BPO. |
