Business process outsourcing refers to the company's inspection of business processes and corresponding functional departments, outsourcing these processes or functions to suppliers, and the suppliers to reorganize these processes. The enterprise integrates and uses its best external professional resources to contract out some non-core, temporary, and relatively strong alternative services to professional business outsourcing companies, so as to reduce costs, improve efficiency, and give full play to its core Competitiveness and a management mode that enhances the enterprise's ability to respond quickly to the environment. Business process outsourcing providers provide comprehensive solutions for specific service businesses according to customer needs to help companies reduce or eliminate expenses and management costs in this business, so that customers can concentrate all their energy on core capabilities. In the final analysis, it is an important means for enterprises to reduce costs.
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Global Business Process Outsourcing Industry Market Status Analysis and Prospect Forecast
Through the implementation of business outsourcing, companies can not only reduce operating costs, concentrate resources to give play to their core advantages, better meet customer needs and enhance market competitiveness, but also can make full use of external resources to make up for their own deficiencies. At the same time, business outsourcing also It enables enterprises to maintain flexibility and diversity in management and business. Many industries have outsourcing services to a certain extent. With the gradual maturity of the outsourcing industry, business process outsourcing involves more extensive services. Common business process outsourcing mainly includes accounting and financial outsourcing, human resources outsourcing, knowledge process outsourcing, procurement and Supply chain outsourcing, customer service outsourcing. As of 2020, the market share of customer service outsourcing is 32.23%, ranking first; the market share of procurement and supply chain outsourcing is 14.70%, ranking second; the market share of human resources outsourcing is 13.91%, ranking first third.
Because business process outsourcing can promote enterprises to concentrate limited resources and capabilities, focus on their core business, create and maintain long-term competitive advantages, and achieve the purpose of reducing costs and ensuring quality, it has attracted increasing attention from enterprises in the market economy competition. In recent years, it has developed very rapidly, and it is a very common business in the production and operation of many companies. For example, Boeing-the world's largest aircraft manufacturing company, only produces cockpits and wing tips; Nike-the world's largest sports shoe manufacturing company, But never produced a pair of shoes. As of 2019, the market value of the business process outsourcing industry reached US$297.29 billion. In the future, with the development of diversified business needs of enterprises, business process outsourcing will have greater room for growth.
At this stage, the global business process outsourcing industry has formed an overall pattern with the Indian market as its core and emerging business process outsourcing markets such as China, the Philippines, and Malaysia. Large-scale IT companies, financial institutions, and other service-oriented companies in developed countries such as Europe and the United States, without reducing product quality as much as possible, use business process service outsourcing to optimally allocate corporate resources, reduce production costs and reduce operating risks. , Thereby enhancing the core competitiveness of the enterprise. Facing the international service outsourcing market with a lot of business opportunities, more and more countries with subcontracting capabilities are becoming ideal overseas subcontracting locations for European and American companies.
As the fastest-growing and most dynamic economy in the world, the Chinese economy has a stable political environment, a better legal system and infrastructure construction, huge market potential, and a large number of low-cost talents with basic technology and language skills. It indicates that China has obvious comparative advantages in the development of business process outsourcing trade. For other relatively backward countries, because business process outsourcing requires appropriate Internet infrastructure and intervention conditions, it is predicted that the region will have higher requirements for information infrastructure conditions. There are still imperfect network environments and slow server operation speeds. , Broadband lines often fail and so on. As of 2020, North America has a market share of 40.09%, ranking first; Europe has a market share of 18.29%, ranking second; India has a market share of 9.56%, ranking third.
The Impact of COVID-19 on the Business Process Outsourcing Industry
Affected by the epidemic, the international financial market is violently turbulent, and the world economy and trade are being hit by both supply and demand. In order to prevent and control the spread of the epidemic, measures such as delayed resumption of work, home isolation, and travel restrictions have been implemented successively, disrupting the normal office rhythm of all walks of life. Business process outsourcing companies generally failed to launch remote office systems in time, which was greatly affected. Small foreign companies have been hit harder, and sustainable operations are facing severe challenges. Affected by the out-of-synchronization of epidemics in various countries around the world, business process outsourcing companies in some countries have basically returned to normal, but most companies are still subject to changes in international epidemic prevention and control. This provides huge development opportunities and expansion for companies that have recovered first. Business, a good time to grab market share. But in general, the business process outsourcing industry has a sound and stable development foundation. It is expected that companies will continue to show their vitality for development after the epidemic returns.
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