Q1. What is Business Process Services outsourcing?
According to Gartner, Business process outsourcing is the delegation of one or more IT-enabled business processes to an external provider that, in turn, owns, administrates, and manages the selected processes based on defined and measurable performance metrics.
These services have two major categories: horizontal offerings (those that can be leveraged across multiple industries) and vertical-specific offerings (those that require specific industry vertical process knowledge).
Business process solution as a service gives businesses the staff, systems, and software they require to function as a pay-per-use utility. It reduces cost of operations and cost of ownership by using the accessibility and effectiveness of cloud-based technology.
Q2. What are the benefits of using tech-enabled Business Process Solutions?
- Better customer service: Tech-enabled BPS achieves a superior customer experience through focus on process improvement, quicker response rates, data-driven customization, and constant learning.
- Cost efficiency: Businesses that outsource tech-enabled BPS optimize their global workforce, and are able to automate procedures to become more cost-effective.
- Quicker turnaround time: With the use of multiple time-zones to deliver services, support for off-peak and overnight processes, and optimized processes, outsourced Business Process Solutions can promise consistently quicker response time.
- Scalability: Business process solutions that are technologically equipped, already have a pool of trained workforce, can accommodate a considerable increase in workload, demand, and client base including for seasonal or business -driven fluctuations.
- Better quality of deliverables: Tools and approaches for tech-enabled Business Process solutions minimize the scope of human error, use automated Quality control platforms and other methods - resulting in higher-quality completion of any work.
Q3. Give some examples of Business Process solutions that a typical provider can support.
Some mature areas of outsourcing include Business transformation in Banking (Retail, Commercial, Wealth Management and Investment Banking), Mortgage Services and Title Insurance/ Tax services, Life Insurance & P&C Insurance, Finance & Accounting, Call Center and Customer Experience, Quality Control and Compliance. The actual processes that benefit from outsourcing could be rules-based (e.g. data entry, document checking) or decision-based (e.g loan underwriting, company financial analysis) and any simple or complex process. With the use of automation, analytics, point solutions and platforms, processes can become more efficient and robust with fewer errors. A mature BPS provider like Coforge BPS can assure measurable and consistent outcomes in terms of lower cost, better quality and faster response time.
Q4. How do you reduce risk when working with a Business Process Solutions provider?
- Availability of a qualified talent pool and scale
- Robust methodology for transferring/ outsourcing processes
- Certifications – like ISO/ Info Sec/ SSAE/ HIPAA. etc.
- Quality, Governance, and reporting structures once operational
- Flexibility in pricing models and partnership needs (e.g. sudden scale-up/ down)
- Stability in the provider and an outlook for continuous improvement
Q5. How do BPS providers assure sustained process improvements?
BPS provider, like Coforge BPS, work with multiple clients, have deep domain knowledge of industries, have been providing these services for 2 to 3 decades, and have strong process mapping and reengineering skills.
They also focus on
- Use of the latest technology
- Ability to support end-to-end comprehensive processes to allow reengineering
- Use solutions that are an optimized mix of people and technology solutions
- Have structured programs for continuous improvement (Lean, SIx Sigma, etc)
- Engagement models that incorporate efficiency and productivity gains over time
Q6. What are some of the easiest processes to start outsourcing with?
Each organization, business and situation is unique. A quick assessment of processes across the area of focus typically delivers a matrix f processes that can be easily outsourced based on low to high risk involved, and low to high impact that it can deliver in the short, medium and long-term. Some examples that Coforge BOS typically suggest that clients can quickly start with, if they have no immediate problem to resove, include areas like
- Document management
- Data entry and checking
- Call Center, customer experience services
- Finance & Accounting services
- Technology services
If the provider has deep industry experience, then the initial scope can be much broader. For instance, an organization like Coforge BPS comes with a lot of experience in multiple industries like Banking, Financial Services, Insurance, Travel and Hospitality - so any process or need in these industries is an easy decision to make around initiating outsourcing.
Q7. What are some of the complex processes that Business Service Providers can support?
Outsourcing providers with a proven track record have become really proficient in the business processes of their customers. There is really no limit to the type of processes that may be outsourced. Here are some examples from the financial services world:
- Mortgage Underwriting support
- Claims management in Insurance
- Financial statement spreading and analysis for Banks
- Property Title & Tax Searches For Lenders
- Collections and default management
- Dispute management in Cards and payments
- Compliance and Quality control functions
Q8. What is an example of automation in Business Process services?
Almost all organizations have a need for quality control and compliance to rules. A trend in these organizations is to outsource quality checks so as to have a third party review the work. In such cases, cutting-edge automated quality control and compliance platforms like Copasys are used to take data from multiple sources from the client systems and apply AI and constructed rules to check for quality and compliance of processes. This optimizes efficiency and raises the standard of their enterprise risk, compliance, QC and quality assurance programs. Note that this is a comprehensive service using automated platforms to bring out exceptions, and trained professionals to remediate defects, and achieve 100% accuracy in processes. In addition, such outsourcing of QC and compliance provides dynamic BI reporting, and insights for process improvement to reduce future errors. This platform uses simplified audit and remediation end-user plugins, and a low-code, dynamic rule-based automation generator to make implementation quick and simple. Here is an example Copays case study
Q9. What is the size of Business Process Solutions outsourcing and its future?
The global business process outsourcing market size was valued at USD 232.32 billion in 2020 and is expected to witness a CAGR of 8.5 % from 2021 to 2028. The numbers clearly reflect a constant growth in the outsourcing market.
As this area matures, outsourcing of work is not just for large enterprises with significant workforce size or breadth of operations. According to Clutch, 8 in 10 small businesses (or 80% of them) plan to outsource their business tasks to save time, grow their company, and gain other advantages. And almost 37% of small businesses outsource at least one of their business tasks.
With advanced technological development and a need to use the best resources from the most appropriate location, the outsourcing industry is expected to grow quickly.