Business Process Outsourcing (BPO) has drastically changed over the years with the steady adoption of new technologies and business models. It has come a long way from offering customer-care call center services. Today’s BPO services can include end-to-end support for any business function in any industry across geographies.
The impact of the pandemic ought to be mentioned here. Remote working, touchless facilities, etc. — the almost-instantaneous shift of paradigms at the beginning of this decade also redefined BPO. And it was for the better, fortunately.
With that said, let’s peek into what BPO in the future will be.
The era of digital BPO
Digital technologies will be the cornerstone of next-gen BPOs. Digital BPOs are rapidly and steadily leveraging artificial intelligence (AI)/Machine Learning (ML), big data, real-time analytics and automation and continuously experimenting with the scope of these technologies to gain a competitive advantage.
5G and AR/VR/XR, currently a favorite of retail and entertainment industries, are close to being the staple features of BPO services. Together, these technologies can expand and supercharge the capabilities portfolio of BPO companies.
New-age technologies being a game-changer
BPOs have started mining for new solutions based on emerging technologies such as AI/ML, analytics and intelligent document processing, to name a few. For instance, Gartner anticipates that the use of AI for BPO services will surge from the current 6% to a whopping 40% over the next two years. This underlines potential investments from the BPO industry in leveraging AI for a wider service range with optimized outcomes.
These technologies are gaining traction primarily by allowing BPO companies to offer an improved customer experience via hyper-personalized services. Advanced analytics enables companies to predict customer sentiments and industry and market trends. Natural Language Processing (NLP) is simplifying documentation, recordkeeping and various clerical formalities. These new-age technologies are thus revolutionizing the personalization of customer experience on various fronts. Like the Italian-German car Pininfarina Battista that set its latest record, BPO providers are expediting footprint and performance growth with the latest technologies.
Evolving business models
Traditionally, outsourcing focused on labor arbitrage due to its obvious cost benefits. However, as the expectations in B2B partnerships evolved, organizations shifted focus to output and value addition. Today, the outcome-based pricing model is the most preferred choice in the outsourcing industry.
Modern-age BPO value proposition goes beyond labor arbitrage and encompasses SLA-driven business benefits and advantages. It enables companies to harness transformational innovation and incremental improvement in business processes. As a result, outsourcers realize many benefits, including but not limited to cost reduction, performance elevation and integration of standards such as LEAN and Six Sigma.
Emerging BPO hubs
Globally, tier 2 and tier 3 countries are experiencing a surge in outsourcing activities. BPOs are expanding their footprints to tap into unexplored landscapes. For instance, Poland, Brazil, Mexico, Malaysia, Argentina, Uruguay and South Africa are a few second-tier countries witnessing substantial Information Technology Enabled Services (ITES) proliferation.
Even nations that are not associated with ITES, in popular opinion, are also attracting outsourcing business deals. A few notable ones are Egypt, Morocco, Tunisia, Kenya, Ghana, Ethiopia, Rwanda and Nigeria. While India continues to be the top favorite BPO destination, China (which is typically known for manufacturing and heavy industries) is steadily expanding into the BPO landscape.
With the right expertise to leverage the advancements, BPO can play a pivotal role in offering new possibilities and delivering exceptional value worldwide.
The preferred partner for next-gen BPOs
Looking ahead, the future of BPO lies in its digital-first approach. The industry's future will be characterized by AI and other emerging technologies that will drive innovation, efficiency and global collaboration.
Innovative, strategic and sustainable use of existing and emerging technologies calls for partnership with a reliable technology enabler. With the right expertise to leverage the advancements, BPO can play a pivotal role in offering new possibilities and delivering exceptional value worldwide.
