Business Process Outsourcing of Financial Services

There has been a drastic change in the way people do business in today’s world. Business strategies have been altered depending upon the demands of the changing economy. For example take the case of business process outsourcing industry. With the emergence of BPO, the perspective on the way things should be done have changed. Most of the enterprises are outsourcing their work as the ITES/BPO sector is booming in many countries. In this manner, the companies make sure that they remain competitive and money is spent lucratively.

Being one of the fastest growing nations in the world, India has become a BPO hub in the recent years. All the four metropolitan cities; Delhi, Chennai, Kolkata and Mumbai have become the BPO center for almost all MNCs in the world. The companies prefer India as the nation has an abundant and well trained people who are used as resources at a lower wage. Since the labor charges are high in developed countries, Indian BPOs have been in huge demand. Also the people in India are known for their ease in adapting foreign working style and culture. Moreover 24/7 support is enabled due to the unique geographical location and change in time zones.

The BPO in India have recognized the need for quality office services and thus the firms have spurred the growth of the industry. With an increasing demand in the outsourcing services, there are a lot of companies and services to choose from today. Most of the service providers are located in the cities in India like Bangalore, Chennai, Delhi, Pune etc.

Financial services and accounting have become an indispensable part of the Business process outsourcing as the banking industry is witnessing numerous changes. Some of the key factors that redefine the industry are globalization, regulatory requirements, competition and technology. Hence the companies pertaining to the financial services are forced to increase and retain their customer base. There is a demand for a transition from a product centric to a customer centric approach and they need to innovate in a crowded market. More and more companies are outsourcing the financial services to offshore locations.

The financial services basically covers asset management, financial management, accounting and financial analysis. Even though these processes play a vital role in the financial state of a business, they may not be the support pillar of a business like manufacturing and production. It would be money wastage for such a company to invest in hiring accountant professionals and spending on in-house accounting department. So many companies rely upon the BPO in India for managing their work.

The financial service segment is expected to clock the highest growth in the coming years as it incorporates value added domains like insurance claims processing, financial management and mortgage processing. All these indicate that the business process outsourcing has a long life in the market.