How Is Technology Changing the BPO Industry?November 23, 2022
Innovation through technology continuously changes the way industries work. The evolution of disruptive technologies is reshaping the legacy work approach. The Business Process Outsourcing (BPO) sector is also facing technological change with the paradigm shift.
BPO is a tech-savvy industry experiencing a significant up-thrust in the use of technology in this industry. According to Managed Outsource Solution, the global BPO market size will grow from 195.2 billion USD in 2017 to 343.2 billion USD by 2025, reflecting a compound annual growth rate of 7.4 percent during this forecast period. So, let’s understand how technology is aiding this growth every single day.
What Are BPO Solutions?
It is the practice of sub-contracting business-related resource-intensive tasks and operations to third-party vendors or companies. A firm or organization contracts another firm or company to carry out its business operations to maintain its core operations and provide value propositions.
According to the Grand View Research report, the global BPO service market will expand at a compound annual growth rate of 9.1 percent from 2022 to 2030.
An Overview of the Technology-driven BPO industry
In traditional BPO systems, business customers must wait in long queues to resolve their queries. In this cut-throat competitive customer-centric market, keeping customers waiting impacts the customer experience. The latest technology trends have sparked the surface of the outsourcing industry, producing a tremendous transformation in the business outsourcing field.
The BPO sector started leveraging modern technologies like cloud, BPO solutions, automation, data analysis, etc., to uplift the bar. These modern technologies cut the unnecessary time of repetitive work, enhance productivity, and help in scalability. With these technologies, customers can resolve their queries in an instant.
Technologies That Are Changing the BPO Industry
BPOs know it will be difficult to woo customers in this competitive customer-centric market without bringing efficiency and cutting-edge technology. Let us closely look at the various technologies that help change the BPO industry.
1. Big Data and Data-Driven Analytics
Since data is the new oil, extracting insights from it makes it a valuable tool for understanding the market. Thus, businesses, irrespective of any industry, have adopted this technology. Real-time business intelligence is a critical tool that gives a competitive advantage to the BPO industry.
BPO companies use data analytics to render superior-quality business solutions. With predictive analysis, BPO companies can differentiate the quality of service and comprehend customer responses. This data-driven, proactive approach enables executives to take the right step to enhance customer experience.
2. Cloud Technology and Storage
With the advent of cloud computing, every industry leverages certain benefits. The BPO industry is no different. Whether we talk about hosting BPO solutions/software in the cloud, storing massive customer data, cloud-based call centers, or providing scalability—everything becomes seamless through the cloud. BPO businesses can easily share data through the cloud.
Leveraging various services, such as voice-over calling, analytics, data storage, etc., has also become systematic. Also, the pay-as-you-go model reduces unnecessary costs of using multiple IT services and infrastructures within the BPO industry. According to some reports, cloud-based services account for 78 percent of the total BPO industry revenue.
3. Automated Systems
Customers want a fast and seamless customer experience. In this fast-growing market, leading-edge technologies can impact BPO by eliminating repetitive tasks with automated systems. Businesses can make various business processes and customer outbound calls (for call centers) involuntary through auto-dialling and machine learning solutions like chatbots, voice recognition systems, etc.
Additionally, the advent of the Robotic Automation Process (RPA) emerged as a new trending technology that can offer high-value business process management with exceptional cost savings and fast time-to-deliver. Thus the BPO services have started leveraging automated systems to ease various tasks and enhance customer satisfaction.
4. Diverse Platforms and Services to Reach Customers
Messenger and video calling software development services has gained momentum, giving rise to the latest and some of the best communication tools and platforms. With the growth of social media and various network platforms, it has become easy for the BPO industry to reach target customers or potential leads effortlessly.
Gone are when emails and high-charging phone calls were the only possible means of quick communication. Modern BPO systems can use private communication channels, instant messengers, video calling apps, and other cloud-based VoIP Calling services. These options have changed how the BPO industry approaches a customer and made communication cost-effective and smoother. These advanced communication systems also embrace streamlining quick & easy query resolution.
We hope this article provided a good idea of what BPO service is and how trending technologies enable a paradigm shift in the BPO sector. If you want to outsource your business operations and processes, you must leverage the power of BPO solutions, catering to their services with the latest tools and technologies.