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PUBLIC BPO: Opportunity to expand the economic horizon of the nation

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BPO: Opportunity to expand the economic horizon of the nation
PUBLIC
“ If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of
business.”
PUBLIC
Business process outsourcing (BPO) is the contracting of a specific business task, such as human resources and customer service, to a third-party service provider.
This allows companies to focus on their core business processes.
BPO is implemented as a cost saving measure for tasks that a company requires also it ensure efficiency, scalability ,work life balance , quick customer response etc.
What is BPO ?
- Back Office Outsourcing- which includes internal business functions such as billing or purchasing.
- Front Office Outsourcing which includes customer related services such as marketing or tech support.
Offshore Outsourcing is BPO that is contracted outside of a company’s own country.
Nearshore Outsourcing is BPO That is contracted to a company’s neighboring country.
Onshore Outsourcing is BPO that is contracted with the company’s own country.
Key Terms
How Does BPO work
Arriving at the decision to outsource a business process through verities of avenue
• Start up companies need both back office and front office functions as they do not have enough resources to build staffs
• Established companies opt to outsource after an analysis that outsourced provider could do better at lower costs
• Organizations go through identifying best vendor for the work for the shifting
This shifting requires significant change management –as it impacts staffs, established processes and existing workflows , finances –for not only for cost often taxes and reporting
Security and regulatory concerns: some regulations require local storage of certain types of data which could prevent the use of offshore provider
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• Change in IT infrastructure and digitalization
• Software is a major source of business in BPO industry; it is a tool to work.
- Expert System
are software tools that perform analytical tasks.
• Online Analytical Processing (OLAP) has created a wide range of new possibilities including Hiring Process.
• Online Analytical Processing (OLAP) has created a wide range of new possibilities including Effects on Organizational design.
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BPO : Global Hot Spot
• China is considered as BPO Hot spot around the world in the manufacturing & technical.
• India is considered as BPO Hot spot around the world in the engineering & technical.
• Mexico is considered as BPO Hot spot around the world in the manufacturing.
• United States is considered as BPO Hot spot around the world in the analysis & creative.
• Philippines is considered as BPO Hot spot around the world in the administrative.
PUBLIC
BPO : Opportunities in Global Market
• Global Business Process Outsourcing (BPO) Services Market is expected to reach USD 335.2 Billion by the end of 2024, with 10.8% CAGR during the forecast period, 2019–2024. In 2018, the market was led by North America with a 69% market share, followed by Europe and Asia-Pacific with shares of 16.2% and 9.3% respectively.
Segmental Analysis The 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 PLC WNS (Holdings) Ltd IBM Corporation ADP LLC Conduent Inc. Capgemini Genpact Aegis Limited Tech Mahindra Limited Tata Consultancy Services Limited and Infosys BPM Limited
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BPO: Market Trends New opportunity Trends in BPO Industry : 1. Usage of new technology
2. Data security
5. Increased transparency
Organizations across the world are increasingly exploiting artificial intelligence, machine learning, and natural language processing to drive their digital transformations journey. This is more so because customers 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 streamlining processes and tasks previously performed manually by humans.
Businesses across industries including insurance companies, banks, and telecoms are among the earliest adopters as they are sizable incumbents with large customer bases facing cost pressures alongside disruption threats from startups.
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Accounting & Finance BPO By 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%.
Financial Accounting Solution for SME & Large Ventures
Cash flow management
Providing budget allocation
Key performance indicator
Cost price calculation
Account collections and receivable
General Accounting
Financial Planning and analysis
Finance and accounting tools
related issues
COMPANY HOUSE
Capital Budgeting, Performance Appraisal,
Investment Planning and Portfolio
Share registers & transfer registers online
Filing various returns, Advisory Services related to
corporate laws.
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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 global outsourcing landscape (20-30 percent lower than India and Philippines”
• Bangladesh can cease this opportunity, then BPO, hopefully, will be our second biggest industry in earning foreign 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 out call 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 and accounting 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 $5 Billion 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, skilled resources ,infrastructure, and existing political environment. Such advancement is possible for Bangladesh too - we only need a proper strategy for making that advancement. For that we will need intervention and cooperation from both public and private sectors.
PUBLIC