Key findings: Business process outsourcing services
Key insights on the critical cost drivers and procurement best practices offered in this business process outsourcing services market intelligence report will help the category managers address the significant procurement challenges faced in the current market. The report also analyzes the US supply market and market entry barriers to help buyers and suppliers achieve cost-savings.
Challenges faced in the manufacturing sector which include lack of technical expertise, supply chain complexities, and customer attrition are driving the buyers to outsource most of the related functions. This is creating significant demand in the business process outsourcing (BPO) services market. To increase focus on their core area, the healthcare sector is outsourcing activities such as medical billing and collection, medical coding services, payment posting, revenue cycle management services, and medical claims processing services. This is accelerating the category spend momentum to a large extent. However, high attrition rate and inter-boundary regulations are posing as some of the critical procurement challenges faced in the current BPO services market.
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This business process outsourcing services market intelligence report offers detailed information on the pricing strategies to help the buyers procure from the top BPO companies at cost-effective rates. It covers the sustainability practices and the risk management/mitigation strategies that can help in identifying and addressing the procurement challenges faced in the BPO services market. Our reports offer a comprehensive overview of the global and regional supply market, cost drivers, category risks, and supplier ecosystem.
Our portfolio of reports for the professional services help buyers understand:
- Global and regional spend potential for business process outsourcing services for the period of 2017-2022
- Risk management and sustainability strategies
- Incumbent supplier evaluation metrics
- Pricing outlook and factors influencing the procurement process
Analyze the global category spend for business process outsourcing services
BFSI, retail, and the IT and telecommunication are some of the significant end-user sectors who are accounting for an accelerating spend growth momentum in the BPO services market. Focus on reducing OPEX is driving the retail sector to outsource activities such as sales support, real-time sales guidance, order inquiry and processing, and compliant management to the leading BPO companies. Currently, the retail sector claims the major part of the market share on a global basis.
For more information on the exact spend growth rate and yearly category spend, download a free sample.
This procurement research report offers coverage of:
- Regional spend dynamism and factors impacting costs
- The total cost of ownership and cost-saving opportunities
- Supply chain margins and pricing models
Optimize category spend for business process outsourcing services
Procuring skilled expertise within a minimal cost can be a challenge but not an impossible task in the BPO services market. Buyers are advised to adopt the best cost country sourcing (BCCS) strategy based on the following parameters that have been proven to facilitate significant cost-savings on the long-run:
- Labor costs
- Technology cost
- Supply market competition
- Tax rates
- Availability of skilled workforce
- Cybersecurity measures
- Attrition rate
This business process outsourcing services market intelligence report also offers coverage of:
- Key category management objectives
- Supplier cost breakup
- Category pricing dynamics
Assess category spend for the US region
Growing demand from the healthcare and airline industries in the US will increase the scopes for the vertical BPO companies. However, the horizontal BPO services market is predicted to take a hit because of the fierce competition exerted by the global counterparts and an increasing preference towards the vertical BPOs as they offer bundled sourcing opportunities.
Additional information offered in this procurement research report will help buyers analyze:
- Margins of suppliers in the US
- Category spend in the US
- Price outlook and forecasts until 2023
Build strategies for effective supplier selection
Because a high attrition rate is posing as a significant procurement challenge for buyers, it is quintessential to select a supplier based on their agent turnover rate. A high turnover rate can increase OPEX which will result in adding to the buyer’s procurement spend. The turnover rate can be calculated as the number of agent separations during the time period/ average number of agents employed during the time X 100.
This procurement research report identifies the major costs incurred by suppliers and provides additional information on:
- Competitiveness index for suppliers
- Market favorability index for suppliers
- Supplier and buyer KPIs
Devise effective category management strategies for business process outsourcing services
Ensuring optimal resource utilization while achieving cost-savings is crucial for buyers. Utilizing Lean Six Sigma methodology enables the BPO companies to maintain a high occupancy rate, thus provide services with optimum resource utilization. This will allow service providers to avoid additional costs that arise during project overruns. Adoption of Lean Six Sigma will also enable service providers to increase the number of FCRs and TAT along with reducing customer churn for buyers.
Key insights offered in this market intelligence report will help the buyers identify:
- Risk mitigation strategies
- Cost-saving opportunities: Supply-side levers
- Supplier relationship management strategies
Determine the spend dynamics for key geographies
APAC is expected to account for a significant increase in the category spend momentum. Prevalence of feasible business policies and better technological infrastructure that can readily adopt latest technologies are attracting outsourcing requests from significant industries across the globe. Low wage and lower office rent in most of the APAC countries allow them the liberty to offer BPO services at reduced rates. However, the shortage of skilled workforce will impede the category growth in MEA countries when compared to the global growth of the BPO services market.
Key geographies analyzed in this procurement research report include the following:
- North America
- South America
Information on the top BPO companies and significant procurement challenges faced while procuring business process outsourcing services is offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Business Process Outsourcing (BPO) Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for global BPO services supply market is the increasing focus of businesses on developing customer-centric engagement models and outsourcing non-core functions such as customer requests, order processing, technical support, and telemarketing.
Business Process Outsourcing Services – Procurement Best Practices
Buyers must engage with suppliers that can provide customized support service packages to different non-core business functions. Buyers must partner with suppliers that offer support services for various industries and ensure that the necessary services are available and negotiate based on the level of customization.
Business Process Outsourcing Services - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the difficulty in integrating services from various suppliers. SpendEdge’s procurement specialists predict that the buyers must engage with suppliers that have standard service level agreements, have a global delivery network, and are capable of providing integrated services across geographies to counter this specific procurement pain point