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BPO:Opportunity to expand the economic horizon of the nation

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“ If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of

business.”

– Lee Kuan Yew

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Business process outsourcing (BPO) isthe contracting of a specific businesstask, such as human resources andcustomer service, to a third-partyservice provider.

This allows companies to focus ontheir core business processes.

BPO is implemented as a cost savingmeasure for tasks that a companyrequires also it ensure efficiency,scalability ,work life balance , quickcustomer response etc.

What is BPO ?

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BPO Categories It is often divided into Two categories :

- Back Office Outsourcing- which includes internal businessfunctions such as billing or purchasing.

- Front Office Outsourcing which includes customer relatedservices such as marketing or tech support.

Offshore Outsourcing is BPO that is contracted outside of a company’sown country.

Nearshore Outsourcing is BPO That is contracted to a company’sneighboring country.

Onshore Outsourcing is BPO that is contracted with the company’sown country.

Key Terms

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How Does BPO work

Arriving at the decision to outsource a business process throughverities of avenue

• Start up companies need both back office and front officefunctions as they do not have enough resources to build staffs

• Established companies opt to outsource after an analysis thatoutsourced provider could do better at lower costs

• Organizations go through identifying best vendor for the workfor the shifting

This shifting requires significant change management –as itimpacts staffs, established processes and existing workflows ,finances –for not only for cost often taxes and reporting

Security and regulatory concerns: some regulations requirelocal storage of certain types of data which could prevent theuse of offshore provider

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Driving factors of BPO Revolution

• Change in IT infrastructure and digitalization

• Software is a major source of business in BPO industry; it is a tool towork.

- Expert System

- Decision support system

- Artificial intelligence

are software tools that perform analytical tasks.

• Online Analytical Processing (OLAP) has created a wide range of newpossibilities including Hiring Process.

• Online Analytical Processing (OLAP) has created a wide range of newpossibilities including Effects on Organizational design.

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BPO : Global Hot Spot

• China is considered as BPO Hot spot around the worldin the manufacturing & technical.

• India is considered as BPO Hot spot around the worldin the engineering & technical.

• Mexico is considered as BPO Hot spot around the worldin the manufacturing.

• United States is considered as BPO Hot spot around theworld in the analysis & creative.

• Philippines is considered as BPO Hot spot around theworld in the administrative.

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BPO : Opportunities in Global Market

• Global Business Process Outsourcing (BPO) Services Market is expected to reach USD 335.2 Billion by theend of 2024, with 10.8% CAGR during the forecast period, 2019–2024. In 2018, the market was led by NorthAmerica with a 69% market share, followed by Europe and Asia-Pacific with shares of 16.2% and9.3% respectively.

Segmental AnalysisThe Global BPO Market has been segmented based on Type, Deployment, Organization Size, Vertical, and Region.

• By Type, the market has been segmented into IT outsourcing, finance and accounting outsourcing, back office outsourcing, E-commerce support services, training & development outsourcing, and others.

• By Deployment, the market has been divided into cloud and on-premise.

• By Organization Size, the market has been divided into small and medium-sized enterprises and large enterprises.

• By Vertical, the market has been divided into IT and telecommunications, retail and consumer goods, manufacturing, healthcare, and life sciences, government and defense and others.

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BPO : Key players in global market

Accenture PLCWNS (Holdings) LtdIBM CorporationADPLLCConduent Inc.CapgeminiGenpactAegis LimitedTech Mahindra LimitedTata Consultancy Services Limited and Infosys BPM Limited

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BPO: Market Trends New opportunityTrends in BPO Industry :1. Usage of new technology

2. Data security

3. Emphasis on multiple higher skills

4. Startups partnering with BPO companies

5. Increased transparency

6. New outsourcing destinations

7. Focus on social media management

Organizations across the world are increasingly exploiting artificial intelligence, machine learning, andnatural language processing to drive their digital transformations journey. This is more so becausecustomers employ next-gen technologies to connect with enterprises.

Chatbots.

Robotic Process Automation (RBA)

Are two technologies that can open up new opportunities for organization by streamliningprocesses and tasks previously performed manually by humans.

Businesses across industries including insurance companies, banks, and telecoms are among theearliest adopters as they are sizable incumbents with large customer bases facing cost pressuresalongside disruption threats from startups.

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Accounting & Finance BPOBy integrating platforms with digital technologies such as AI and RPA,

the team of Accenture standardized and centralized processes for

approximately 250 finance employees of a global company. The

implementation of process diagnostics, agent performance, workflow,

controls and task management assets resulted in better allocation of

work. And in just three years, the amount of time finance

professionals spent on transactional tasks decreased from 89% to

just 17%, while the time spent on strategic initiatives increased from

11% to 37%.

Accounting BPO

Accounts Payable Processing

A/R Processing

Preparing Balance Sheet

Bookkeeping Services

Tax Preparation

Year-end Financial Report

Invoice Factoring Function

Cheque Posting

Payroll Processing

Accounts Reconciliation

Document management

Invoice Entering

Verification and Collection calls

Financial Statement Preparation

Accounting BPO

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Accounting & Finance BPOFinance BPO

Financial Accounting Solutionfor SME & Large Ventures

Cash flow management

Providing budget allocation

Key performance indicator

Financial analysis according tobudget

Providing cloud-based supportto client

Cost price calculation

Profitability analysis

Partner To Meet Financial Target

Account collections and receivable

Procurement and supply chain management

General Accounting

Record-to-Report

Budget Allocation management

Comprehensive End-End Finance And Accounting Services

Financial Planning and analysis

Finance and accounting tools

Accounting, closing & Reporting

A/R & A/P

Bookkeeping

Payroll

Recovery Audit Services

Tax Preparation

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Accounting & Finance BPO

ACCOUNTING & BOOKKEEPING

Backoffice Accounting, Remote

Bookkeeping, Financial Reporting & MIS

AUDITING & ASSURANCE

Statutory, Compliance and

Management Auditing

TAX ISSUES

Company & Partnership Tax

Return, Preparation of Accounts,

Self Assessment, VAT & Sales Tax

related issues

COMPANY HOUSE

Incorporation, Closure, Administrative

Restoration, Confirmation Statement, Annual

Accounts, Share Allotment, Director

Appointment etc.

FINANCIAL SERVICES

Business Plan Writing, Finance Planning,

Capital Budgeting, Performance Appraisal,

Investment Planning and Portfolio

Management etc.

SECRETARIAL SERVICES

Preparation and Transmission of Notices, Preparation

Minutes, Maintenance of Minute books, Maintaining

Share registers & transfer registers online

Filing various returns, Advisory Services related to

corporate laws.

PAYROLL

Payroll calculation, Payroll Data

Entry, Payslip & Payment Advice

generation etc.

DATA SERVICES

Data Entry, Data Cleaning,

Normalization, Statistical Data

Analysis, Analytics

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BPO :Bangladesh to be the next destination of BPO • Countries like India, Philippines, and Sri Lanka have already made their marks in establishing a flourishing

BPO industry. Even a small country like Sri Lanka has exceeded 3 billion dollars of earning through BPO.

• Notably Bangladesh has a comparative advantage of “lowest cost offshoring destination” in globaloutsourcing landscape (20-30 percent lower than India and Philippines”

• Bangladesh can cease this opportunity, then BPO, hopefully, will be our second biggest industry in earningforeign currency after the RMG or Ready Made Garment industry.

• The government has began focusing on growing the ITES-BPO Industry. In April 2008, it started giving outcall center licenses at a nominal cost.

• Bangladesh has two key strength: large scale availability of young talent and a distinct cost advantage.

• Given the large pool of commerce graduates, Bangladesh should consider services within the finance andaccounting vertical and can expand to offer analytics and HR related services in the long term.

• According to the data available with Bangladesh Association of call center & outsourcing (BACCO),earnings from the BPO sector stood at $300 million in fiscal year (FY) 2017-18 with a target to reach $5Billion by 2021and it was only $12 million in FY 2011-12.

• BACCO aims to create an estimated 0.1 million employment by 2021 in the BPO sector.

• Leading local BPO operators include Digicon Technologies, Graphic people, Tiger IT and Genex Infosys.

• Looking ahead, Bangladesh will need to address key concerns in terms of employability of talent, skilledresources ,infrastructure, and existing political environment. Such advancement is possible forBangladesh too - we only need a proper strategy for making that advancement. For that we will needintervention and cooperation from both public and private sectors.

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