‘Onshore trend’: BPO business getting a hit

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floor area call centerBusiness process outsourcing (BPO) companies, specifically those in the contact center space, are reversing the trend of moving most outsourced work to low-cost locations such as the Philippines and India, chasing higher-value ‘onshore’ business in exchange for working closer to their clients, a study by advisory firm Everest Group shows.

“On-shore” and “near-shore” presence is increasingly becoming an important area of differentiation that is helping those vendors who can demonstrate the capability garner a larger share of business.

In the 2008-2010 period, more than 71 per cent of the contracts were delivered mainly offshore. In the 2011-2012 periods, that fell to 59 per cent, Everest Group said. And the trend is further picking up.

FirstSource Solutions, Aegis, WNS and Serco are among firms that have been spending on big-build delivery in places such as South Africa, Eastern Europe, Scotland and the US and more investments in this space are expected.

“Having a flexible set of delivery locations is often in a provider’s interest so that it can accommodate different client requirements. Where work is moving back on-shore or near-shore it is primarily to try and improve the quality of customer service – typically with the use of native speakers,” Cathy Tornbohm, analyst with technology consultancy Gartner, said.

The pace of the global economic recovery is also an important factor is driving work back to the home markets, particularly from clients who want to cut costs but are unwilling to send the work out of the country.

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Reading Time: 1 minute

Business process outsourcing (BPO) companies, specifically those in the contact center space, are reversing the trend of moving most outsourced work to low-cost locations such as the Philippines and India, chasing higher-value ‘onshore’ business in exchange for working closer to their clients, a study by advisory firm Everest Group shows.

Reading Time: 1 minute

floor area call centerBusiness process outsourcing (BPO) companies, specifically those in the contact center space, are reversing the trend of moving most outsourced work to low-cost locations such as the Philippines and India, chasing higher-value ‘onshore’ business in exchange for working closer to their clients, a study by advisory firm Everest Group shows.

“On-shore” and “near-shore” presence is increasingly becoming an important area of differentiation that is helping those vendors who can demonstrate the capability garner a larger share of business.

In the 2008-2010 period, more than 71 per cent of the contracts were delivered mainly offshore. In the 2011-2012 periods, that fell to 59 per cent, Everest Group said. And the trend is further picking up.

FirstSource Solutions, Aegis, WNS and Serco are among firms that have been spending on big-build delivery in places such as South Africa, Eastern Europe, Scotland and the US and more investments in this space are expected.

“Having a flexible set of delivery locations is often in a provider’s interest so that it can accommodate different client requirements. Where work is moving back on-shore or near-shore it is primarily to try and improve the quality of customer service – typically with the use of native speakers,” Cathy Tornbohm, analyst with technology consultancy Gartner, said.

The pace of the global economic recovery is also an important factor is driving work back to the home markets, particularly from clients who want to cut costs but are unwilling to send the work out of the country.

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