Overview of Key BPO Outsourcing Trends Affecting the Industry


The business process outsourcing industry owes its existence primarily to the IT revolution. Without technologies like high-speed Internet and remote networking, it would have been impossible for organizations to exploit the cost benefits of outsourcing business processes to third-party firms situated halfway across the world.

In such a scenario, it is obvious that changes in improvements in technology will have a significant impact on the BPO industry. Read ahead for an overview of the latest outsourcing trends affecting the BPO industry.

1. Growing Popularity of Cloud Computing

Cloud computing helps organizations delegate establishment, maintenance, and improvement of IT infrastructure to third-party service providers. Until now, BPO service providers relied on conventional business models by establishing elaborate offices and investing in IT infrastructure to provide services to foreign clients.

Now, cloud computing will allow BPO outsourcing firms to encourage employees to work from home. With these solutions facilitating real-time sharing of data, information, and software services, BPO companies can reduce costs and improve efficiency by making the switch to cloud computing.

2. Shorter and More Flexible Contracts

BPO outsourcing companies will no longer be assured of long and stable contracts. Instead, more and more organizations are demanding shorter contracts with more flexible options. With the business environment changing at a very rapid pace, firms are relying on innovative strategies to boost revenue and profits. In such a scenario, outsourcing companies too are witnessing a transition to contracts with shorter time frames that seek agile facilities.

3. Omni Channel Services

With customers relying on multiple channels to interact with sellers and service providers, BPO outsourcing services too will have two embrace this change. Focusing solely on voice-based outsourcing services will not work at a time when more and more people are using social media to purchase products and services. Just as commercial organizations are using multiple channels to engage with their customers, BPO service providers too will have to utilize these new-age channels to offer more versatile services.

4. Emphasis On Gamification

Attrition has always been an issue for the traditional BPO outsourcing company. High attrition results in higher expenditure towards HR management and training, along with the inevitable reduction in quality of service until the new employee is fully trained. In such a scenario, BPO service providers will look towards gamification strategies to keep their employees engaged during the performance of repetitive and monotonous tasks.

5. Switch to Mobile-Based Services

With growing broadband penetration, even a firm offering BPO outsourcing in India can rely on wireless Internet technology and mobile devices to offer mobile-centric services to customers. Such a change will result in lower infrastructure costs, a flexible working environment for employees, and more versatile services for clients.

6. Domestic Outsourcing

With organizations aggressively pursuing cost-reduction strategies by utilization of new technologies, there is a possibility that domestic outsourcing may become the preferred choice for firms in developed countries. This can prove to be a significant challenge for companies based in developing countries. However, the high rate of growth in these countries will mean that domestic outsourcing may prove to be an attractive opportunity as well.

Changes in business environment and introduction of new technologies are expected to dominate the BPO industry in the coming years. While conventional and traditional strategies may no longer be effective, an innovative company relying on versatile and nimble strategies can experience faster and more sustainable growth.

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