What is vertical BPO? Is this the next big thing to hit the BPM industry? Well, many are likely to think so since this has led to setting new frontiers in the field of outsourcing. In BPO, horizontal services are function specific that are scattered over different sectors of the BPM industry. These include services with respect to data processing and payroll processing.
Vertical BPO services give emphasis to functional services that are required in specific domains of the industry such as health care, legal services, retail, and financial services. Business process outsourcing has been highly beneficial to many companies due to the cost savings and scalability that are possible from offshoring non-core tasks to a service provider, who is highly qualified and skilled in those areas.
The common trend in the BPM industry was that work was outsourced with respect to specific functions. For instance, a data processing center would handle only that task. A call center would be dealing only with operations related to that domain. The focus was merely on centralization, quality and labor arbitrage. The approach has changed in the last few years. What is vertical BPO and what are the benefits it has to offer is the latest buzz that has been going around in the BPM industry.
What is vertical BPO and what does it have to offer?
Many progressive service providers have joined the bandwagon of vertical BPO services. So, what is vertical BPO got to do with the renewal of the BPM industry? Companies that had initially looked to outsourcing as a means of reducing costs have realized the value of scalability and quality of delivered services from this sector.
Beyond the traditional front- and back-office operations provided by BPO companies, opportunities lie hidden in the large volume of work in specialized areas. This work is more complex and specific to each area in the BPM industry. This type of work requires a high level of expertise in specialized topics.
This new model is a practical approach to the changing scenario in the BPM industry. The present global economy and the emerging requirements in the industry have given impetus to, what is vertical BPO carrying out in specialized fields and services. Vertical BPO provides a suitable way to aid companies in creating new services and products and entering new domains of operations. Outsourcing companies stand to gain highly from this vast expanse of unexplored areas if they are ready to invest in such specialized areas.
As part of providing vertical BPO services, business process outsourcing companies have now forayed into research and development, thereby setting new standards in legal, financial, health care, life sciences and many other areas. This will herald the renewal and further growth of the BPO industry