Boosting Utilis: How back office support can help with vertical specialization.

Boosting Utilis: How back office support can help with vertical specialization.

Most BPO businesses and the clients they have acquired have been aligned horizontally, by specific functions, only to reduce operational costs of non-core business processes. 

However, in order to deal with shifting management and growing markets, most businesses have adopted vertical specialization with the help of progressive and proactive BPO services which have enabled them to achieve economies of scale.

The opportunities for clients and businesses to adapt to vertical BPOs rather than traditional back office support can be really favorable as the work is optimized, integrated and regulated.

The processes can be done seamlessly while reducing total cost of operations with competent expertise and efficiency. 

Most of the BPOs which have a vertical-specific approach cover the outsourcing of services but mainly with the expertise of domains. An example of this could be processes such as transaction processing, credit analysis, insurance policies etc. 

However, there are also disadvantages when a business decides to do vertical specialization with their outsourced processes. Bounded rationality, loss of control and uncertainty are a few key problems businesses face while adapting to integration. 

On the other hand, companies are so eager now to shed fixed-cost overheads that they are now willing to outsource vertical applications that are crucial to their core business. 

Since vertical-specific BPOs are more business critical, the one variable that businesses need to look for in their potential BPOs is if they have the time management and expertise to support vertically-oriented functions. Vertical specializations in BPO models require commitment as they are directly associated with direct customer relationships and customer service. 


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