According to Keyur Maniar, a writer at Wipro.com, the latest trend in business process outsourcing is vertical specialization – meaning companies no longer align their outsourced service by specific function. Now, Maniar says, the idea is to focus on more complex, industry-specific work that reaches behind the traditional outsourcing arrangement.
Vertical specialization holds increased potential in the financial services industry, where it can help institutions deal with often overwhelming compliance requirements. The banking industry has been hit with a wave of regulations in the past several years, as governments all over the world try to put barriers in place that would prevent another financial crisis. Financial institutions now must devote considerable time and resoruces to complying with these regulations, but vertical BPO can make this process much easier.
That’s because vertical BPO relies on industry-specific, integrated systems that extract the needed data and create compliance reports – reports that are more accurate and less costly to produce for the institution. As financial institutions face increasing regulation and economic challenges, vertical specialization won’t just be a trend in the BPO – it will be the future of the industry.