Insight and Trends

Developed in the 1990’s by business guru Greg Hackett, benchmarking and best practices have been the standard measures of business excellence for the past 15 years. Hackett says “If the bulk of your resources are still being spent crunching numbers, there’s not a lot of time for looking over the horizon.”

The latest trend in keeping companies competitive is to outsource transaction processing. Finance departments need to be more strategic in their outlook instead of wasting time tweaking processes. In this time of rapid change, successful companies need to focus on external factors as much as they do on internal tracking and measuring. Hackett states that when you outsource, costs will go down even if you already do a great job internally.

What is BPO:

For the pursuit of high performance, focus on core business activities or to reduce high staff cost the trend of BPO is getting common in today’s corporate world. Business Process Outsourcing usually referred as BPO, is a business strategy to transfer organization's repeated non-core and core business processes to an external service provider.

Effective BPO encompasses much more than just changing who is responsible for performing the process. In BPO, the outside provider not only takes on the responsibility to manage the function or business process, but also re-engineers the way in most effective, efficient and valuable manner.

It is important to recognize that outsourcing the processes doesn’t necessarily mean a complete transfer of control but more likely the utilization of third party services. Infact outsourcing is a shift of business resources comprising infrastructure, people, systems to a service company.

Research indicators:

Forrester predicts that by the year 2015, about 3.3 million US services industry jobs and $136 billion in wages will move offshore.

EDS, meanwhile, forecasts that the BPO market will grow at an annual clip of nine percent to 11 percent through 2007 Mckinsey and Company By 2008, global remote-service operations may undertake activities accounting for half a trillion dollars around the world and representing every element of the value chain. Such operations could generate cost and other savings of about $400 billion, to be shared by the users and the providers as profits

Deloitte study discovers 7% of Global Financial Institutions plan to outsource offshore.

It has been found that medium to large sized corporations employing about 5000 employees can get a cost benefit of $9.7 Mn - $18.4 Mn per annum by outsourcing their back office departments. The saving can vary from 35.8% to 50.7% of the total operations cost. This saving is accrued because of

a- saving in cost due to reduced in-house back-office staff and
b- better SLA deliverables because of outsourcing

How we create difference?
Prior to the implementation of any solution or providing service to our client we perform free of cost SCOPING STUDY. The purpose of scoping study is to set out requirements more formally. Exalter will deliver a formal presentation and a report that accurately describe your requirement, our solution and our quote. You are open to use this study and obtain quotes from other service providers. Only once you’re satisfied and decide to go with Exalter a formal contract will be signed.
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