A Clutch study reveals, 52% of businesses were willing to outsource processes in 2019. The business process outsourcing industry touched $100 billion milestones in 2016 but in 2018 it could only manage $85.6 billion. The emergence of Fintech and E-commerce start-ups has now added an anticipatory boost to the BPO industry.
With the need to furnish KYC, AMC and manage millions of documents, both Fintech and E-commerce organizations are relying on efficient BPOs. On the other hand, BPOs have leveraged state-of-the-art technologies to offer a matchless service.
While unicorn start-ups and one-third of small businesses are using outsourcing as an anchor of success, large-scale organizations are missing out. Fortune 500 countries consider BPOs synonymous with customer service but they are ignoring how BPOs are using technology to offer a competitive advantage.
Some of the BPO trends that organizations are willing to adopt and you should too include:
1. Tailored Outsourcing
Started in the 1760s, Outsourcing has evolved with time and tide. Earlier outsourcing helped businesses add speed to repetitive processes. Today, outsourcing is leveraged as a tool to enhance, amplify and anchor processes with new technologies and paradigms.
Tailored Outsourcing is one example where BPOs are relying on patented machinery and paradigms to help organizations achieve excellence. To support varied functions with BPO offerings, agencies are training their employees in specific skills.
The Fintech penetration increased from 16% in 2016 to 60% in 2019 in countries like India and China. The 100% in 2 years has got Fintech organizations frustrated managing KYC documents and handling customer complaints at the same time. By training employees in KYC handling skills, BPOs have provided these Fintech organizations with an alternative way of getting things done faster.
Benefits of Tailored Outsourcing in a Nutshell:
• Skilled individuals work on your processes
• The chances of compliance failure reduce
• Executives get time and resources to focus on core processes
2. Social Media as a Customer Service Platform:
A Gartner report reveals, by 2020, 90% of businesses will use social media channels for customer service. Doubling social media as a tool to offer quality support can go a long way in creating an online presence. With a vivid online presence, organizations can leverage social media analytics to optimize campaigns and garner incomparable results.
Only a handful of businesses have leveraged the power of social media analytics to predict customer behavior. By outsourcing customer service where social media is the preferred channel of communication, enterprises can kill two birds with one stone.
3. Process Automation
Agree or not the future we saw in movies 2 decades ago is here. Today, businesses are offered solutions and opportunities that can help them increase their market share. Process automation is an outsourcing trend that has been around the corner for a while now.
With the emergence of Artificial Intelligence and Machine Learning, where technology learns and creates new things on its own, automation was expected sooner or later. With Robotic Process Automation, where robots take care of customer service and other repetitive processes, businesses can expect an impressive boost in production.
Some of the most important benefits of leveraging Process Automation are:
• Getting work done in a timely fashion
• Cost-effective operation within the stipulated period
• No hazard to human life
• Improved customer satisfaction
• Improved compliance with internal guidelines and international standards
4. Businesses will Data-Driven with Cloud-Based Services
Data forms the basis of the implementation of artificial intelligence and machine learning. These technologies analyze data to decipher hidden patterns and then predict customer behavior. The conspicuous attribute of artificial intelligence and machine learning lies in the analysis of available data.
Businesses have relied enough on offshoring for getting things done manually. Now BPOs that leverage cloud-based technology to offer management and analysis of data will win contracts.
Also, Forbes predicted that 77% of companies are at least hosting one app in the cloud. With Fortune 500 companies following the suit, BPOs must bring in the requisite change in their system to remain relevant.
Here are the underrated benefits of Cloud that can empower BPOs:
• Improved delivery of services and reports
• Higher data security due to impregnable security features
• Supports flexibility and scalability
5. Improved Transparency
Multiple organizations have lost money while offshoring processes and functions. Today, start-ups with limited funds are scared to outsource processes because one loss and they won’t have the fuel to survive one more month.
BPOs from India and the Philippines understand the concerns and are actively working to build a transparent environment. By investing in technology, compliance, certifications and API integrations, BPOs have furnished all legal necessities. Compliances that help BPOs become more transparent and legally viable are:
1. PCI DSS Compliance to safeguard cardholders’ data
2. ISO to ensure smooth third-party integration
3. HIPP compliance to safeguard patient’s details
Going forward transparency will be the key deciding factor and BPOs that have leveraged the trend will benefit immensely.
Anyone who wrote off BPOs after the market share plumed in 2017 must change their stands. In the last two years, BPOs have garnered speed and now they are looking forward to becoming a $100 billion industry once again.
A unique mix of technology, transparency, and tailored outsourcing will usher BPOs into the new era of progress and success. Organizations must understand the benefit these trends are going to bring in for them and make the most of it.