Finance BPO Offers A Number Of IT Enabled Services
April 1, 2011
To define business process outsourcing briefly, it involves delegating a business process to a vendor who manages the project according to defined parameters. These processes are typically not core business activities but administrative functions required to operate the business.
In terms of terminology, BPO and IT Enabled Services are interchangeable because ITES is a segment of BPO. When process that are outsourced deals in IT, then the process is referred to as ITES. In all other cases, it is referred to as business process outsourcing.
In this context, one of the new trends in outsourcing is Finance BPO. U.S. firms are now offshoring a lot of their accounting and finance related functions and they are also outsourcing Human Resource outsourcing. As far back as 10 years ago, Indian banks have been offering annual maintenance contracts. From this level, IT outsourcing in banking has shifted to Facilities Management.
During the early phase, BPO has expanded because of its foreign clients in Europe and U.S. However, there has been a consolidation in the BPO sector since profits have been low in the wake of a recession.
Often it is quite likely that companies outsource more than just one service. So it makes sense to outsource from a single vendor. Hence, the vendors in the BPO industry are flexible enough to provide a myriad of services to companies.
Specifically, HDFC Standard Life, ABN-Amro, ICICI Bank and UTI are currently considering business process management to improve returns on investment, employee productivity and customer relationship management.
Building and maintaining a long term customer relationship management is an arduous task since almost all banks offer similar products. A business process management system includes data imaging, workflow automation and other enhancements of enterprise application. The procedural steps and business processes of a company are outlined, integrated and analyzed in order to come up with a structure for the company. This, in turn, assists in delivering business solutions.