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Business process outsourcing has always been viewed as a means to cut down costs and improve the profitability by the corporate sector. In the recent days, however, BPOs have emerged as a value proposition that has brought about a major transformation in the sector. Several technologies like cloud computing, social media networks and website analytics are the reason behind this transformation. Gartner defines business process outsourcing as, “the delegation of one or more IT-intensive business processes to an external provider that, in turn, owns, administrates and manages the selected processes based on defined and measurable performance metrics.”
Here is how the BPO sector has transformed over the years:
1. With the robotic process automation and such other automated systems, the BPO sector has been able to offer high-value creation with quicker time-to-value and cost savings.
2. Cloud storage has made the entire process of storage extremely organized. Data retrieval and sharing have also become easy and fast, thanks to Cloud. The storage of data in Cloud eliminates the need for unnecessary storage space. It also reduces the consumption of energy. Cloud computing is economical as well as cost-effective when it comes to infrastructural costs.
3. Instant messengers, social networking platforms, video calls and mobile apps have taken over the traditional phone calls and emails as communication channels for vendors, businesses and customers. The latest advances in communication technology have facilitated easy and quick resolutions to any queries.
4. A very critical line of business that can demarcate competition and help organizations to reach the desired position is real-time business intelligence. The emergence of data metrics and tools that will assimilate and deliver the related strategies will continue to transform the BPO sector for the better.
As companies and business continue to outsource for the cost-effective, the trends that will help them further in 2019 are as follows:
1. Strategic alignment: As stated already, one of the key reasons for companies to outsource is to reduce costs. Corporate leaders are rewarded for and are focused on bottom-line performance. Outsourcing is a cost-effective way that helps them reach financial performance goals. But this does not mean that cutting down on the cost will not have negative effects in future. Hence, a clear vision for the future that has been backed by appropriate investments is the only way to achieve growth targets. Corporate strategic alignment is the trend that all business will look forward to. It is extremely important for all the partners to be on the same line of thought. BPO partners will have to align with the company’s vision and integrate the company’s culture while making management communication a top priority.
2. Protection of vital assets: BPO partners are able to protect the vital assets by offering long-term contracting and deep expertise that brings some relief to the accounting department. Apart from financial stability, BPOs also help out with data security. BPO partners who have the proven technology and secure systems effortlessly protect their client’s data and integrity.
3. Improving customer experience: Companies will need to share their insights on what they require and want with their BPO partners. This will enable the BPOs to provide predictable and standard processes which are backed by innovative technology that will give the companies an improved customer experience.
4. Investments in technology: Companies often are conservative when it comes to making investments in technology that will bring solid returns. BPO partners will be able to provide the basic AI tools to the companies, along with advanced tools like visual IVR (Interactive Voice Recognition) at a pace that will ensure solid profits.
5. Continuing the partnership: It is extremely important to continue and make the partnership stronger, once the investment in the BPO partnership is finalized. Some challenges which the BPOs and the companies will continue face are that of marketing communication, cost control, improving productivity and enhancing the technology.
According to a research article published in Management Study Guide, “India has emerged as a hot destination for BPO work in recent years. The success is mainly due to the fact that there is a ready availability of large numbers of resources fluent in English and the diligent and hardworking efforts put in by the companies in India that do BPO work.” The best BPO partners will work with companies to evaluate and provide a clear path to meet the targets while offering effective communication strategies. 3i Infotech is a BPO provider that is a strategic partner who will meet and exceed every management, communication, technological requirements and staff for the betterment of its partner company.