Outsourcing of back office processes such as data entry services remains one of the easiest functions to outsource as more companies are learning, becoming a popular choice to outsource for various industries.  Back office outsourcing is now seeing increasing adoption among different verticals including the banking and asset management sectors.

It may not be as big as the other industries falling under outsourcing, but back office outsourcing is as important as the more popular ones such as contact center outsourcing, finance and accounting and research outsourcing. Outsourcing back office solutions such as web data entry may not directly affect a company’s operations but it is seen to be an important factor in hastening business processes.

With the United States market still in slump, businesses project difficulties in profit increase in the next 7 years. Job cuts continue in the US and the rate of job creation of 25 per year is not sufficient to offset job losses in the next 5 years. On the other side of the world, Indian outsourcing firms show an opposite trend. Global IT service providers such as Infosys which provides technical consulting, design and development of business solutions have been aggressively increasing their workforce. Last week, the company reported that in the second quarter it has hired 6,069 people offsetting the 4,521 employees it laid off in the same quarter. Tata Consultancy Service is also bullishly hiring with plans of hiring 25,000 people worldwide for this year 2009 and 90% coming from India. Also part of the bandwagon is Wipro Technologies. In October 15 Wipro CEO Azim Premji said that the company is planning to hire about 500 local employees for a new service centre by Jun 2010. Manpower India Director Cherian Kuruvila also highlighted this hiring trend by Indian outsourcing firms saying, “Companies are expected to build a talent pool for upcoming projects as green shoots are visible”.

In an aggressive attempt of major technology manufacturing firms to diversify its markets for more consistent revenue streams, they have been buying and bidding for business process outsourcing services firms.