Top sectors outsourcing their services


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Top sectors outsourcing their services

  1. 1.  The global outsourcing industry is growing rapidly, and its set to grow 5.1 percent in 2013 where India total size of BPO industry is $20 billions.  The total market size for the BPO industry is expected to reach $304 billion this year with industry-specific services representing $185 billion of the total.  F&A BPO will see 7.8% year-over-year growth, HR BPO will undergo 5.6% year-over-year growth, and industry-specific BPO will see 5% year-over-year growth.  North America and EMEA (Europe, Middle East, Asia) will continue to account for the vast majority of global BPO contracts.
  2. 2.  Information Technology  Telecom  Banking, Financial services & Insurance  Retail  Manufacturing  Healthcare  Legal services  Telecom, Retail, Healthcare are the top potential sector for outsourcing services
  3. 3.  The worldwide IT outsourcing (ITO) market is forecast to reach $288 billion in 2013, a 2.8 percent increase in U.S. dollars.  The reason for the growth in this area is expansion of the multinational companies expected to drive the growth in Asia Pacific, Latin America and Greater China and expected to grow over 13%.  IT outsourcing services always have the highest share in comparison of other vertical industry.  According to Nasscom, in the last five years, India has lost about 10 per cent market share to the rest of the world in the world BPO space.
  4. 4.  The global telecom outsourcing market is expected to reach a total value of around $76 billion by the year 2016, and will grow at a CAGR of 4% between 2012 and 2016.  The main growth driver in the global telecom outsourcing market will be carriers' desire to reduce their operating expenses and CapEx  The main players in this industry include Alcatel-Lucent, Ericsson and Huawei.  Earlier telecom companies have looked to service providers for intermediation services, database services, and various OSS/BSS support but The next stage in evolution is to outsource value-added services.
  5. 5.  Customer Acquisition  Order entry  Order fulfillment  cross selling and up selling  Operations and CRM  Logging and Monitoring Service Requests  Collection Analytics  Usage Analytics  Collection Analytics
  6. 6.  Sales & Contracts Administration  Sales order tracking  Ordering support  Pricing  Contract preparation  Order management  Billing  Data management  New product and services  Service delivery process creation  Technical Validation and Support
  7. 7.  The second most booming sector for outsourcing is Retail.  US hold the biggest market share that outsources their services in retail sector.  The share of outsourcing in India is still 8% but it is a potential sector for outsourcing business  Biggest retail companies are looking for service providers to get better outcomes by improving customer’s experiences and loyalty
  8. 8.  Customer services  Sales support  Account management  Complaint management  Coupons  Gift card management  Financial services  Accounts payable  Order to cash  Credit management  Order & billing management  Cash applications  Reconciliations  Disputes & deductions
  9. 9.  The global healthcare BPO market is growing at a healthy CAGR of 21.4%.  Healthcare provider outsourcing has the highest growth rate of 31.9% Healthcare payer outsourcing market will also grow at about 30% in the forecast period.  U.S. is the largest source of outsourcing, followed by Europe.  In Europe UK is the largest outsourcing market in public sector. In Public healthcare sector NHS is now outsourcing 38% support services like financial, procurement and payroll services.  UK is the most potential market to pitch for healthcare outsourcing services.  Healthcare companies are looking to companies redefine their operating model and maximize value from their business processes.
  10. 10.  Pre-service  Bill preparation  Receivables management  Debt analysis  Billing and submissions  Collections  Claims administration  Overpayment recovery  Fraud detection and investigation.  Customer care
  11. 11.  The worldwide outsourced manufacturing industry reached $404.5 billion, up 4.5 percent from $387.0 last year(According to IHS).  this year OEMs are expected to increase their outsourcing activities to gain opportunities for expansion across multiple industries.  These industries include consumer electronics, industrial electronics and automotive electronics.  The next few years also look set to see rates of increase, by 2016 revenue is expected to amount to $451.9 billion
  12. 12.  Companies in the manufacturing sector have been facing a number of problems such as reduced demand, lower productivity, supply chain inefficiencies, rising cost of raw materials and aggressive competition.  Outsourcing service provider helps manufacturing companies streamline existing processes, improve productivity and optimize the performance of their manufacturing facilities.
  13. 13.  Marketing and Order management:  New Customer Set-up  Order Processing  Billing and Invoicing  Collections  Order Status  Customer Acquisition  Master Data Management - Customer - Product - Pricing
  14. 14.  Operations:  Fault Management  Change Management  Sales Performance Reports  Store Planning  Market Intelligence  After sale services:  Product and Warranty Registration  Warranty Analysis  Warranty Claims Processing
  15. 15.  The United States of America is the largest outsourcer in terms of both volume and value.  United states is the largest outsourcer in Healthcare, Information Technology, Legal, Financial services and retail services.  The next largest outsourcer is the United Kingdom.  Other European countries are the third resource for outsourcer to the emerging economies like India.