An increasing number of the companies that seek, or that are planning to seek, the services of the outsourcing solutions providers, particularly back office service providers that are coming from the different categories and the industries. This is because the back office outsourcing is not limited to a particular industry because just like a few other types of the outsourcing such as finance and accounting outsourcing and human resources outsourcing, the back office and knowledge process outsourcing KPO branches have rapid increase in growth. As to why companies seek the assistance of the back office solutions providers, the innovative solutions that outsourcing companies offer the market be one of the reasons as to why companies seek the assistance of back office solutions providers. The survey from Interim Partners showed that the 64% of their respondents who are solutions providers expect that they are poised for the growth due to the expansion in terms of the solutions.
In most parts of the world, this includes the European region, this is particularly in the United Kingdom companies of all sizes are now turning to the outsourcing to help them in conducting their administrative and the operational tasks. This is because the service offerings and the benefits that one can gain from delegating the tasks are becoming known to the public. In the United Kingdom, the small and medium sized businesses are now reaching out to the government to help them in sealing deals with the outsourcing companies. The outsourcing industry seems to agree with the small and medium sized enterprises that the government must pursue more efforts in helping the smaller businesses conduct their business and such efforts are pointing to the direction of the outsourcing.
The growing popularity of the back office outsourcing in the United Kingdom, the industry may still experience some setbacks in its margins as the region is currently experiencing a decline in the economy. In the economy has pushed top outsourcing customers to request a reduction in the rates demanded by the outsourcing providers. In the United States, which is another region in the globe rich in outsourcing customers, the retailers who are seeking back office and software services from outsourcing solutions providers are asking for rate reduction up to 15 percent. The Indian outsourcing companies including the Tata Consultancy Services and Wipro have begun reducing their billing rates to keep their United States retailer customers such as Walmart and Home Depot. Although the demand for the back office outsourcing solutions may be getting bigger, the outsourcing solutions have yet to design and product offerings at a lesser rate for the current and future, clients o address the economic concerns of those who are affected.
REFERENCE:
http://www.blog.infinit-o.com/back-office-solutions-providers-margins-low-despite-high-demand/
