For various industries, outsourcing of back office processes such as data entry services remains one of the easiest functions to outsource as more companies are learning that becoming a popular choice to outsource for different industries. Back office outsourcing is now seeing increasing adoption among different vertical including the banking and asset management sectors. The banking industry drew attention as a report from research and consulting firm Markets and markets found that US banks are outsourcing bank office processing duties at an increasing pace with the growth estimates at $67.2 billion in 2015 from $38.1 billion in 2008 with the IBM and Accenture dominating tha bank back office outsourcing market.
In a previous article, banks such as HSBC have been looking into fund back office outsourcing in China while the other banks Citigroup and Bank of America are also setting estimates could be on course. The asset management industry meanwhile is taking a lead from the banks as rising regulatory costs and increasing competition among the asset management firms is placing pressure in profits. The financial times reported that more than half of asset management companies surveyed forecast their return on equity to fall below 15 percent, down from the average 20 percent which will likely push more of these companies to outsource non core business functions, including the back office process.
The law firms are also looking at the outsourcing back office processes as seen by Morgan Cole’s deal with the Integreon. The law firms signed a deal with the legal process outsourcing company Integreon to run its library and information service. Commenting on the deal, Integreon’s head of global sales John Croft stated that the fact that another law firms is signing up to the center that is just a sign that more firms are realizing that some parts of their support services can be provided more effectively through outsourcing. This is especially true for library and information services where it means gaining access to a wider range of material lower cost.
As global document management and outsourcing company, even other outsourcing companies are seeing the benefit of outsourcing back office process. Xerox undertook restructuring efforts which included outsourcing some of its back office function s. As reported, the company went ahead with its downsizing as part of the restructuring efforts Xerox CFO Larry Zimmerman spoke of in a conference call with Wall Street Analysts, according to Zimmerman, Xerox is undertaking the restructuring efforts in part due to its strategy to outsource some of its back office functions to its subsidiary ACS.
REFERENCE:
http://www.blog.infinit-o.com/industries-turn-office-outsourcing/
