AYMSOFT

Posts Tagged ‘Outsourcing’

It may be the last frontier for offshore financial outsourcing; typically wary of risk and historically cushioned by solid margins, investment managers have historically eschewed offshoring of business processes as aggressively as their counterparts in the credit card or mortgage space. However, as operating models and financial structures change dramatically due to economic conditions, offshoring must, of necessity, become a strategic tool for asset managers to manage costs, transform service levels and support the development of differentiated offerings which can effectively compete in a global, highly competitive marketplace. But it will take readiness on behalf of two parties asset managers and providers to make the change.

It starts with a change of mindset for asset managers in a changing world

What are the implications of what is likely to constitute a “perfect storm” to drive the adoption of offshore outsourcing by the investment management industry? First and foremost, it will represent a huge challenge for the asset management community in terms of mindset change, operational readiness and commitment to execution. The extent to which asset managers, traditionally part of the financial services industry’s more conservative and risk averse class, are willing to adapt will affect the pace of adoption.

]]>

Traditional business models will no longer be effective in an environment which is changing considerably. Firstly, there is a clear trend toward “globalization” with customers demanding a more international portfolio of assets and ever increasing interrelationships and linkages between international capital markets. For example, according to research by Oliver Wyman, fund flows into global and emerging market funds in the last 5 years have aggregated to over 0 billion, while there have been net outflows from US/Europe/Japan funds.  Read more...

With increasing competition for business and variability in the service demand for the financial institution; leads to tremendous pressure to manage their operations in most cost efficient and effective manner. Outsourcing of non-core and transactional services such as customer contact center to 3rd party outsourcing specialists (BPO’s, KPO’s) enables a financial institution to migrate from a fixed cost model to variable or a pay per use model. This KPO outsourcing enables the financial institution to budget its costs more effectively, actively matching the costs to utilization and revenue generation.

 

 

Tactical outsourcing enables the financial institutions to actively match demand by bringing in outsourced resources (from BPO) at the time of increased demand for KPO services such as one time bulk IPO application processing and scaling down the service capacity in other times. Also financial institutions outsource to mitigate certain operational risks such as cash handling, remote ATM management. This enables the financial institutions to focus more on operating the core business instead of devoting management time to non-core activities.

 

 

Outsourcing to specialist outsourcing companies (like KPO’s) enables experimentation with new ideas & concepts. This also enables faster prototyping and customer sampling leading to quicker launch of new services and products. The key benefits of outsourcing can be summarized as matching costs to actual utilization, effective variable demand management and risk mitigation.

   Read more...

Business process outsourcing of financial services

There has been a drastic change in the way people do business in today’s world. Business strategies have been altered depending upon the demands of the changing economy. For example take the case of business process outsourcing industry. With the emergence of BPO, the perspective on the way things should be done have changed. Most of the enterprises are outsourcing their work as the ITES/BPO sector is booming in many countries. In this manner, the companies make sure that they remain competitive and money is spent lucratively.

Being one of the fastest growing nations in the world, India has become a BPO hub in the recent years. All the four metropolitan cities; Delhi, Chennai, Kolkata and Mumbai have become the BPO center for almost all MNCs in the world. The companies prefer India as the nation has an abundant and well trained people who are used as resources at a lower wage. Since the labor charges are high in developed countries, Indian BPOs have been in huge demand. Also the people in India are known for their ease in adapting foreign working style and culture. Moreover24/7 support is enabled due to the unique geographical location and change in time zones.  Read more...

Business process outsourcing of financial services

There has been a drastic change in the way people do business in today’s world. Business strategies have been altered depending upon the demands of the changing economy. For example take the case of business process outsourcing industry. With the emergence of BPO, the perspective on the way things should be done have changed. Most of the enterprises are outsourcing their work as the ITES/BPO sector is booming in many countries. In this manner, the companies make sure that they remain competitive and money is spent lucratively.

Being one of the fastest growing nations in the world, India has become a BPO hub in the recent years. All the four metropolitan cities; Delhi, Chennai, Kolkata and Mumbai have become the BPO center for almost all MNCs in the world. The companies prefer India as the nation has an abundant and well trained people who are used as resources at a lower wage. Since the labor charges are high in developed countries, Indian BPOs have been in huge demand. Also the people in India are known for their ease in adapting foreign working style and culture. Moreover24/7 support is enabled due to the unique geographical location and change in time zones.  Read more...

In today’s global marketplace, the internet has become a crucial medium. In fact, the internet itself has become a virtual worldwide marketplace with websites standing as storefronts, showrooms and virtual offices where companies and individuals can display and explain the goods and services they are offering.

Website development and web design have replaced the interior and exterior design and industrial engineering of brick-and-mortar business sites, ensuring attractiveness and ease of client navigation. Search engine optimization, search engine marketing and social media marketing have become the virtual counterparts of traditional advertising and marketing campaigns.

E-commerce solutions, including online store applications for online shopping and online payment, have enabled companies and individuals to transact business safely through the internet.

It has become practically a requirement for any company or individual offering goods and services to have a presence online through a website in order to maximize business potentials. Ignoring this vast and almost limitless marketplace would mean losing out on immeasurable opportunities.

In this increasingly internet-based global economy, it was a natural progression for companies around the world to discover business process outsourcing (BPO). By seeking offshore partners to take care of back office data and business processes, companies are able to streamline costs and focus their efforts on their core business. Many first world companies have, for example, been successfully outsourcing in the Philippines, where there is a large workforce of highly qualified and motivated talent.

Web Dot Com Solutions  Read more...