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Part - IV

Vertical Segments in BPO in India

The currently available BPO services portfolio is fairly large to include finance/accounting, administration, logistics, human resources and sales/marketing functions. ITES occupies the major share of the BPO pie and HR is the second major shareholder followed by finance and customer services. Therefore there are predictions for extensive growth in finance and accounting vertical and big corporates which have not yet started their BPO ventures can take advantage of the existing scenario and leverage the massive opportunity to become a top shot in this rapidly emerging vertical BPO segment.

The following pie chart shows the vertical segments that are there in the BPO industry in India and their relative shares.

Finance & Accounting BPOs

Globally, BP led the way by outsourcing its F&A work to Accenture in 1991 and, during the last decade, leading service providers gained the history, context and actual experience to develop best practices in this area.

Today's companies are realizing that outsourcing accounting is a smart business proposition as compared to the costly and elaborate in-house accounting capabilities. Additionally, there is a growing need to cut costs, centralize accounting operations and adopt best practices by transferring the ownership of running the accounting processes to experts. The economic downturn and intense competition in the industry is forcing companies to optimise their back-office processing capabilities, including capabilities for non-core processes.

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*Contributed by -
Pankhuri Jain,
PGP I,
IIM Kozhikode.