Progressive or Non-progressive- What Holds The Future of The BPO Industry?
With the evolution of time, there is a tremendous change in the way organizations are working today. By the inclusion of robotics and automation, operations are managed composedly. Digital transformation has indeed alternated the working processes. Considering the enormous growth of intelligent automation and RPA, it is certain that the experts will come up with more astonishing innovations leveraging the functionality in the organizations in the coming days.
However, with the emergence of technologies and sciences, perhaps, a thought arises which may also compel you to wonder. It is anticipated that amidst the glorifying addition of automation and robotics, the need for humans will reduce. If so, then it is for sure that the future of the bpo industry will also be affected. Thus, there are many speculations regarding the bpo industry, whether it will continue shining on or will face gloominess? Let’s find out assimilating the entire services of BPO!
But first, what is BPO, and Is It the Same as a Call Center or Different?
Business process outsourcing (bpo) is a method of subcontracting business functions to a bpo vendor. Herein, a third-party service provider is assigned to maintain all the back office and front office functions for the organizations. The services typically include IT services, customer services, financing and accounting, payrolls, human resources, and other supply chains as per the requirement.
Now, talking about the difference between the call center and bpo, a call center is a subset of bpo, wherein only the call processes are handled. In contrast, a bpo is inclined to manage all the operations outsourced by an organization. So, bpo is not different from a call center, and it is rather a business model that comprises a call center under its thread.
Types of BPO
Relying on the nature and the location of the provider, there are three types of BPO for your business process management, including:
Offshore Outsourcing
Offshore outsourcing refers to when a company hires a third-party vendor from a different country. For example, a company in Spain outsources its service to a company located in the USA or India.
Onshore Outsourcing
When an organization subcontracts its functions to a bpo vendor located in the same country, it is known as onshore outsourcing. They may be located in the same country, yet the state or the city usually differs.
Nearshore Outsourcing
Nearshore outsourcing defines the process of a company handing over its core business functions to a neighboring country.
How are BPO Works initiated?
Delegating in-house work to a BPO company requires modified management to impact employees, workflow practices, and business operations as a whole. The outsourced services include the assessment of the following factors:
- The organization executives come to outsource the entire business process or some part of it.
- The company examines the pros and cons of the vendor and sees if their working strategies make sense to their business or not.
- They go for the best BPO for the tasks and shift the preferred operations from in-house to the external service vendors.
Merits of BPO
BPO has many perks, and its excellent working management benefits the companies with these factors:
- Outsourcing the operations gives you the flexibility to focus on other aspects. It increases the adaptability in the resources management.
- It is cost-effective. First of all, you don’t have to create your department or invest in the assets. With outsourcing, you receive everything that is needed to handle your activities.
- Outsourced services offer you skill sets; since they are trained in handling the client work, the entire workforce has determination and dedication.
- They provide your customers a pleasing experience and have a better speed in tackling the works.
The Latest Trends in BPO
It all started in the 60s from data entry works, but today, BPO can manage all the core activities for a business. This exceptional transition is witnessed because of the consistent demand arising for the outsourced services.
The foremost revolution of outsourcing embraced a new and decentralized operational model globally. The advancement of telephone technology extended its help to cement call center services as the BPO industry’s primary services to offer. The new BPO revolution influences the power of the internet. The addition of high-speed networking and social platforms has boosted the BPO companies to offer phenomenal work to their clients. On that note, let’s check out the new emergence in the subtypes of BPO:
- Knowledge process outsourcing (KPO)
- Legal process outsourcing (LPO)
- Research process outsourcing (RPO)
- Information technology-enabled services (ITES)
The knowledge, legal, and research POs move outsourcing functions outside the realm of excessive office tasks, stretching it out to include highly-skilled professional services. By employing KPOs, companies preferably increase their business’s footprint, drawing on expertise that is typically unavailable in their geographic region. This shift can open up new markets and open many doorways for business growth.
Final Take on the Future of BPO
It is evident how rapidly the competitions are growing. Today, every person wants to own their business and taste the sweetness of success. As the businesses are expanding and the start-ups and small businesses are stepping into the industry, the demand for work distributions is certain. These companies will require employees to handle their operations. Therefore, no matter how high-tech the world will turn into, the demand for BPOs will remain constant.
Moreover, not everything can be removed with artificial intelligence; they are probably consolidated for complimenting humans and giving the marketers a better result.
The working method of business process outsourcing could be at least partially adjusted in upcoming years by technology. Robotic process automation (RPA) and artificial intelligence (AI) can manage some of the business processes now frequently outsourced. These techniques can often perform those functions at low costs and high acceleration.
As mentioned, not everything can be processed through automation. So, there are more chances for BPOs to utilize these technologies in a way better approach that eases the work and offers great productivity.
Another prompt example to understand this would be; television and the internet. Today, we have various platforms endowed by the internet that provide the same luxury as the television does, yet the demand for television isn’t declining. Still, people watch televisions and at the same time used the internet too. Similarly, when people just had a radio, and then television stepped in, the demand for radio didn’t diminish. Even today, a person is hooked to radio and enjoys every drill of it.
In the same manner, the inclusion of high technologies doesn’t mean the extinction of another aspect. Rather, the urge of BPO is much more vibrant and ambitious. In the coming years, bpo will show a greater development practicing more extra services that will ease the workload of organizations.
With the facts mentioned above of business process outsourcing, it is crystal clear that the BPOs have a progressive future. The future of BPO is compelling; the experts are implementing many other features that are enhancing the bpo industry, making it a radiant one.
Today, BPOs are ruling the world with 6 trillion outsourcing businesses in the market, and it is giving a clear indication that BPOs are here to stay forever, making your business the finest and the successful one.
Rest is over to you!