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BPOs switch gears, focus on inbound business
Sangeeta Kulkarni, 7th June, 2004.

US Caps On Client Calls Force Cos To Change Track


MAJOR third-party business process out-sourcing service providers have been witnessing a rise in the proportion of inbound business, which includes activities such as incoming voice, e-mail contact services and help-desk applications.

Much of this rise, firms state,has been caused by stringent restrictions put in place by several states in the US, restricting the number of outbound calls firmscan make directly to customers.

Firms state that inbound customer contact services are far more easier to pitch for and procure. Outbound services, on the other hand, require heavy training and comparatively higher investment.

For many firms, its been a conscious decision to stick to inbound services and reduce dependence on outbound activities, which are facing legal restrictions. A reduction in the number of hours during which telemarketing companies can call, setting up of the do-not-call (DNC) registry and a cap on the number of outbound calls made to the same number, has resulted in an increasing business mix favouring inbound work.

Healthcare billing and receivables management and outsourced transcription services firm CBay Systems' chairman and CEO Raman Kumar said, "A high proportion of inbound directly relates to the core competency of offshore (Indian) firms. When firms started out, they thought they could undertake outbound work but a reorganisation in the way business is now done, has changed the pattern."

The trend for off-shore BPO providers is now skewed towards inbound business services, while onshore service providers usually undertake outbound work. Inbound work is far more difficult in nature and therefore, the firms' ability to perform technical work and available skill sets also determine the shift towards such services, Mr Kumar said.

Inbound services for collection services firm EpicenterTechnologies have gone up considerably. Epicenter Technologies' CFO Sanjeev Dasgupta said there was an upward movement in the quantum of business related to inbound services.

"With legal issues in the backdrop, its still too early to draw a conclusion. The inbound piece of business is relatively more easier to outsource since out bound is bound by regulations," Mr. Dasgupta said.

 
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