When the BPO industry faltered a bit in 2015 and its global worth dipped to $88 billion from $104 billion in 2014, many leaders labeled outsourcing as an obsolete practice. Cut to 2020, BPO is standing stronger with a global worth of $92.5 billion.
When the recession hit the USA in 2008, experts called out outsourcing as a potential reason. By 2009, 9% of recession-hit companies stopped outsourcing but 56% of companies almost doubled their reliance on outsourcing.
Why BPOs started growing again?
During the early years, organizations leveraged BPOs as a tool to offer incomparable customer service but with time the dynamics have changed. Today, E-commerce, Fintech, and Health industries are relying on BPOs to streamline their disorganized processes.
In the age of tech companies and heavily funded start-ups, outsourcing organizations are playing an eminent role in settling the chaos. Be it catalog management for E-commerce, KYC verification for Fintech or Claim settlement for Healthcare companies, BPOs have aced it all. Soon, BPO trends like tailored outsourcing will help start-ups and Fortune 500 companies find the right balance.
Statistics Proving the Impact of Business Process Outsourcing
Why Businesses Outsource Processes?
1. 57% of businesses outsource processes because it helps them focus on core processes.
2. 31% of organizations witnessed a rise in service quality with outsourcing.
3. 17% of enterprises believe “outsourcing drives broader transformational change”.
4. 78% of organizations find their relationship with outsourcing partners to be positive.
Which are the Business Processes Outsourced?
5. 37% of companies are outsourcing Accounting processes.
6. With 37% after accounting, IT services are the most outsourced process.
7. After the accounting and IT services, 34% of organizations are outsourcing Digital Marketing processes.
8. Lead-generation and cold-calling are also one of the most outsourced processes. 28% of companies will outsource business development to cut-cost.
9. 24% of organizations believe “outsourcing HR and Customer Service leaves them with enough time to focus on other processes”. Source
Amusing Outsourcing Statistics that proves the Impact of BPOs
10. Africa, Middle-East and Europe contribute the largest share of the global revenue of BPOs.
11. During 2017-19, India bagged the maximum contracts that originated in Africa, Middle-East and Europe.
12. In 2017, Accenture alone paid $17 billion to BPOs across the world.
13. A BPO named, Manpower Group earned $22 billion in 2017 globally. Statista states that 25% of it originated in the United States of America.
14.1 million Outsourcing jobs are at risk owing to the innovation in the automation sector.
15. One management level is created in BPOs for every four jobs that are lost due to automation.
16. The Philippines backed 16 out of 20 offshore customer service projects in 2016. The country has an impressive English speaking talent pool. With a literacy rate of 95%, the Philippines is now the most preferred destination for outsourcing customer service.
17. 54% of companies from the United States together create jobs over 300,000 every year.
Concerns Related to Outsourcing
18. Data security concerns have got companies to rethink their decision of outsourcing.
19. 68% of companies are facing issues with BPOs when trying to upgrade to cloud-infrastructure.
20. 35% of organizations are always anxious about the data shared with the outsourcing agencies.
21. Even with all the concerns, 44% of chief intelligence officers are willing to collaborate and share data with outsourcing agencies.
How BPOs can Address These Concerns?
Getting compliant and certified by varied agencies will open new doors of opportunities for BPOs. The concerns raised by Fortune 500 companies related to data security and unauthorized access are alarming. With the average cost of data breach touch $4 million mark, BPOs must apply for the following compliances:
ISO Family: ISO Family has a series of certification that helps BPOs seamlessly integrate third-party APIs. The certification is a symbol of safety and security. All ISO certified organizations are known to follow safe and secure practices in the work environment.
PCI DSS: Any organization that receives, stores or transfers cardholders’ data must get PCI DSS Compliant. The 12 requirements of PCI DSS compliance ensures that organizations have prioritized steps that restrict access to cardholders’ data.
Getting PCI DSS helps with the following:
• Safeguard cardholders’ data from unauthorized access
• Improved customer confidence
• Easily convince third-parties to collaborate with you
Statistics that Highlights a Bright Future for BPOs
22. 65% of companies that rely on BPOs for application hosting are willing to increase their investment in outsourcing.
23. Banks are willing to outsource 40% of help desks positions for better efficiency in customer service.
24. Organizations saved up to 18% compared to other businesses by outsourcing payroll management processes.
25. The information technology BPO industry reported revenue of $154 billion during 2017-18 in India alone. Source
In times of trade wars and international sanctions, BPOs have played a crucial role in bridging the gaps between the two countries. With India, China and Singapore being the highest rated partner for outsourcing, Canada and the US have found reliable outsourcing partners.
While robotic process automation and AI are set to cut some jobs but trends like tailored outsourcing and Omni-channel experience will keep the BPO industry hot and attractive.