Business process outsourcing (BPO) is undergoing a metamorphosis from a generic, one-size-fits-all solution to the rise of what has been called “BPO 2.0”: a shift to specialization and niche outsourcing.
Evolution of BPO
Expense reductions and streamlined operations drove BPO’s initial growth, with companies outsourcing non-core functions. As the industry matured, companies demanded more expertise while seeking more value, innovative solutions, and tailored services to address their unique business needs. Indicative of the increasing demand for more specialized and high-value outsourcing services, the global BPO market is projected to reach $405.6 billion by 2027, with a CAGR of 8.0% between 2020 and 2027.
Specialized and Niche BPO Grows
By working with specialized and niche BPO providers, businesses can access more profound industry knowledge, custom services, and innovation. Deloitte studies have found that 59% of companies prefer outsourcing to providers such as Accelergent Growth Solutions, which can offer industry-specific and niche expertise.
Specialized BPO providers are experts in specific industries, like finance, payments, healthcare, insurance, or benefits, delivering tailored services for unique needs. For example, an insurance-focused BPO provider might offer claims processing, payments, and customer experience services. A finance-focused provider typically offers accounting, compliance, and risk management services.
Niche BPO providers specialize in specific business functions or processes. For example, a digital marketing BPO provider handles social media, content creation, and SEO, while a data analytics BPO provider focuses on data analysis, reporting, and visualization services.
Specialized and Niche BPO Benefits
Working with specialized and niche BPO providers offers several benefits, including:
- Services tailored to meet your specific needs rather than generic solutions.
- Industry-specific technology and ideas that can help your business in ways that may not have been achievable otherwise.
- Extensive understanding of your industry can help you launch new products and services faster.
- Deep knowledge in a narrow area can be challenging for your business to replicate in-house.
- Cost savings, since they usually require less investment in training and infrastructure.
Additionally, niche providers, in particular, are often at the cutting edge of their fields, expanding your opportunities for innovation and differentiation.
Looking Ahead
“BPO 2.0” is a significant shift in the outsourcing industry, driven by the demand for expertise and tailored services. The future of BPO lies in its ability to adapt and innovate, and as the industry continues to evolve, we can expect to see more specialized providers emerge.
Accelergent Growth Solutions offers expert business process management and outsourcing services, technology and automation services, a customer contact center, and award-winning marketing services for the benefits, financial services, and insurance industries.