The New Competency: Focus on Your Core Area
How companies are outsourcing parts of their business process functions to cut cost, remain flexible and focus on doing what they do best.
From mom-and-pop stores to brick-and-mortar companies to bristling online start-ups with no real physical presence, running a business is no mean task. With increasing regulatory oversight, complex financials, the penetration of digitization and electronic information systems, the leadership of a company can quickly get lost in the maze of business processes, which results in them losing focus on their core competency – running the business.
Fortunately, a new breed of entrepreneurs and companies has been emerging to help businesses navigate the narrow path to corporate success by performing the business functions. Predominant among them are the IT enabled service companies, which till recently were focussed on off-shore clients. Now, they have turned their attention to focus on the domestic market. This has led to a two-pronged effect on the market – more domestic companies are seeking out firms to finalize their accounts, manger their payroll function, handle logistics, strengthen customer relations and also to digitize their business. This has opened the market as the demand for providers of such services has boomed into a Rs 23,500 crore industry as per the NASSCOM Domestic BPM Market 2016 Report. While the key players continue to be handful of large corporations providing voice-based services, there exists a large unorganised sector that focuses on non-voice business processes.
For companies, this gives them a great opportunity to streamline their operations by outsourcing functions such as payroll, finance & legal, HR, procurement, social media marketing and analytics and content creation. Since, the service providers are specialized entities, they provide the best-in-class services giving a competitive edge to any company that utilizes them. There is the added benefit of cost savings as the company would have had to invest large amounts of capital for procuring and maintaining equipment and software, salaries, etc.
As more businesses seek such services, the opportunities for savvy entrepreneurs is also on the rise as there is plenty of space in the market for new entrants with lean models and focussed customer-centric models. And no more do these service providers need to be located in the top cities like Bangalore. They are mushrooming in cities like Kochi, Trivandrum and other tier III and tier IV cities which have lower costs and are easier to set up.
The business landscape may have become more complex but it provides opportunities galore for those who are willing to make bold decisions and strategic choices.