Current BPO challenges to BPO Industry: Can we still satisfy our clients?

Top 10 BPO challenges that BPO companies are dealing with_2

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In the BPO industry, there are many BPO challenges that companies have to overcome. Demanding customers and tight budgets are examples of these challenging situations in this field! In addition to high levels of competition with other businesses, crazy work hours/schedules and customer satisfaction make up the most common problems within our community-at-large.

See more» 10 BPO service statistics to know in 2022

The following list will give you more insights into some common issues that may sometimes arise when we are operating a BPO business.

Challenge #1: Political Instability of outsourcing countries

Political situations have heavily impacted the BPO industry in regions like America and Europe. Citizen protests and wars- which have caused significant economic falls for countries worldwide – can force governments to pass specific bills that prevent outsourcing to other countries until today, when there is still some debate about whether this will affect business operations.

The Solution: Diversified client base and valued service lines

There is a need to adjust BPO’s operating practices so that they can better serve new, higher-value market segments. The shift from volume/complexity towards lower volumes and more complex cases currently won’t be easy for companies that are outsourcing, because of site location issues – involving staff skill set availability and technology requirements. They still need to differentiate so they wouldn’t become obsolete or irrelevant in the market, regardless of changes in political or regulatory environments.

When BPO companies like Innovature BPO can customize to offer valued service lines, focusing on expertise, flexibility, and a high level of responsibility-taking, we can serve more long-term clients and sustainably grow.

Challenge #2: Exceeding Clients’ Expectations

The BPO industry is struggling to meet customer expectations in the current market. With more social media channels and increasing competition, it’s harder for these companies than ever before.

The Solution: Accurate Definition of Task Areas

Try the 5 things to exceed Clients’ Expectations below:

  1. Understand Why Customers Contact Us: The first port of call when trying to exceed customers’ expectations is understanding why they contact us in the first place. We offer solutions like helping customers to find FAQs on the website, or preparing training packages, so they can easily find answers themselves, saving time and money for both sides! That’s how our Customer Services work – with less human intervention but more effectiveness.
  2. Be Proactive, Not Reactive: Contacting your customers before they’ve had a chance to complain is the best way of standing out from the competition. It builds not only trust but also loyalty for years into the future.
  3. Doing The Unexpected: Doing the unexpected is a great way to make your customers feel appreciated. We always try to outperform and finish more tasks in less time.
  4. Help Customers Understand Your Technology: Customers naturally want things done quickly and without hassle, which can be challenging when explaining the technology. The best way around this? Make sure customers understand the first time, so there’s no need for re-explaining yourself or your company policies–and they’ll leave feeling satisfied.
  5. Create Consistency Across All Channels: Once agents are equipped with intelligent workflows, they can offer our clients an unparalleled service experience.


Challenge #3: Tied Budget and clients wanting to cut costs

The budget is one of the significant BPO challenges for BPO companies. They have to get the most from their limited resources while still meeting expectations and producing high-quality work with little financial loss or gain on behalf of their clients, which can be challenging in itself.

The Solution: Offering Success-Driven Pricing

Visual support technology is a game-changer for companies that want to save money. It can help you implement performance-based pricing and monitor your costs more accurately than ever before, all while preventing the need for a costly appointment with someone from IT support.

When a company’s BPO can reduce service calls by 20%, where one technician dispatch could be 15x more expensive than an online support case, it is possible to propose that we can be bonused with percentage cuts on savings from reduced Onsite servicing. These tactics would help boost margins and lower operating costs for both parties involved, which everybody wins.

Challenge #4: Health and Working Environment Concerns

The major health concerns among the employees of an outsourcing company could be due to them working at all times of the day. This situation has been seen before in regions that come under different time zones, resulting in reduced efficiency and productivity.

The Solution: Prioritizing Communication and Mindful Scheduling across time zones

Prioritizing Communication

Companies working across time zones need to rethink traditional email channels and adopt flexible solutions to allow more space for effective communication.

When working on a report, globally distributed teammates won’t have the opportunity to ping their coworkers and get missing info immediately. So it’s crucial for written records of all processes & projects constantly assess each document’s clarity before sending it out! Ensure everyone involved has access rights, so there aren’t late-night calls or hold-ups due to accidents with admin accounts.

With the help of team chat apps and collaboration tools, organizations can find great use in safeguarding their work. These applications offer secure file sharing with unlimited history tracking and seamless search options, making it easy for teams to access files from anywhere at any time without hassle or delay! One key feature about these Team Chat Apps is their “pin” option – which helps keep your essential documents top-of-mind by keeping them easily accessible right where you need them most.

Mindful Scheduling

Mindful scheduling can provide a better way to manage meetings across time zones.

Organizations must set clear time zone boundaries, so their teams do not cross into other calendars without permission. For example, shared calendars can be created showing availability across different hours in a day, and everyone must agree on when they will work together before scheduling anything else.

Companies like us should rethink the overall effectiveness of each meeting. It’s a good practice to schedule appointments only for information that can’t be communicated in other ways, like chats on apps or documents shared digitally.

Challenge #5: Customer Attrition

The BPO industry is becoming more competitive by the day. Sometimes, you may find out that your project has been terminated and given to another company. This termination causes enormous consequences for other companies still working hard to complete projects.

The Solution: Enhancing Customer Experience

Customer experience is one of the essential factors in choosing a BPO. The best BPO companies can provide enhanced first-call resolutions, reduce onsite service calls and repeat business. We also have a clear advantage in reducing the average handling time for your customers.

Challenge #6: Talent Scarcity

The industry is faced with the challenge of finding talented workers. According to a recent survey, only about one out five graduates are qualified for this line of work and ready to take on such an opportunity.

The Solution: Enhancing Talent Management

Create development programs to optimize strengths: When we understand the strengths of employees, it allows us to provide them with a more effective and fulfilling job. This understanding can not only enhance performance but also create positive work environments where people are happy in their work environment.

Increase the diversity of our candidates: Some people might think that diversity is only vital for the creative industries, but there are many benefits. A diverse workforce brings us new ideas and perspectives, which can lead to better business decisions because they will have a broader range of experiences with different backgrounds at work every day.

Engage our current employees:  HR teams are looking for ways to keep high-performing employees on board. The Manpower survey found that more than half of employers report difficulties retaining their top talent, which can be attributed because they don’t have enough tailored development plans available or an effective way to communicate the company’s goals and expectations with these individuals.

Improve our onboarding process: With a structured onboarding plan, you can improve the chances that an employee stays at our company by up to 69%. 70% of workers decide whether or not they will be staying within six months, and 22 percent often leave before 45 first days.

Identify potential in our workforce: There’s a reason why many companies put so much effort into identifying and developing their top talent. The result is better management careers and more concrete succession plans for when those individuals reach retirement age or decide to leave the company altogether.

Challenge #7: Employee Attrition

The BPO industry is suffering from high employee turnover rates. As a result, companies spend large amounts of money each time they train new workers and have to hire additional staff members, which further adds up costs for them in the long run.

The Solution: Enhancing Leadership Management

It’s important to have the right leader in place who will help our business thrive. Here are five skills to enhance leadership management among your teams you should know.

  1. Learner: There are two types of people in a company that you can train your team leaders to learn from:
    • Staff: Leaders should always ask employees for help when they need it. The leader can learn about how things are done in-depth. So they better understand what is going on with their team members and their work responsibilities at any given moment.
    • Direct Superior: If you feel that your direct superior is not providing enough mentorship, then it’s time for some help! You can ask another team member with similar responsibilities or approach one of the experienced fellow leaders to receive guidance.
  2. Data-driven decisions: Great leaders use their gut and grit in making important decisions. They analyze data to come up with accurate conclusions. Still, they also innovate during this process so that the outcome will be more satisfying than what was initially thought “right.”
  3. Innovation: The key to success is innovation. Innovative people can use data and their knowledge of how things work to make creative decisions that will help them reach goals.
  4. Accountability: When a leader does not take accountability for projects, it can lead to resignations. Good leaders know how and when they need your help with ownership of tasks since this will show that you’re invested in what’s happening at work, which is crucial if there are going to be any repeats of past mistakes or issues outstanding by both parties involved. In some cases, an employee may quit because their leader doesn’t take their responsibility when something goes wrong – these types usually blame other people instead.
  5. Serving leadership: Leading a team is not just about leading the group but also understanding your employees and what they need from you to perform at their best. A good leader will be humble, listening before giving any guidance or orders; this way, it’s clear how much value each person has as part of an organization rather than looking out only for themselves.

Challenge #8: Communication Channels

With the rise of social media, it is increasingly difficult for BPO companies to decide which channel to concentrate on when interacting with their clients. People are moving away from traditional phone calls and emails in favor of messages through Facebook or Twitter. This means that these businesses need a firm grasp on what type and how often people use specific platforms if they hope to maintain any communication relationship at all.

The Solution: Tech Support and Agent Empowerment Technology

With innovative customer support technologies, we can now provide a broader range of solutions. For example, visual aids make it cheaper and more accessible for generalists to handle higher-value technical issues without extensive training on how each solution works. Because they see what’s happening within an end user’s screen as soon as they click onto that particular knot hole in need of help from one agent!

Innovature BPO is using this to empower staff and provide more complex services. The integration of intelligent visual support also wins customer mindshare. This solution demonstrates a strong ability to think outside the box. Because it improves customer experience, they can engage in conversations that could not happen otherwise.


Challenge #9: Digital Disruptions

The BPO industry requires 24/7 coverage to keep up with the high demand. However, due to all sorts of reasons, such as poor internet connection or power outages, it can be difficult when disruptions result in lost revenue for companies and challenges within their work schedules too.

The Solution: Problem-focused, data- and customer-driven approach towards innovation technologies

The world of business is constantly evolving, with new technology emerging every day. As a result, BPO companies need to be responsive to the technology trends to succeed and grow in this ever-changing market. The top technology trends helping BPO companies at the moment are as follows:

  • Artificial Intelligence
  • Cloud Communication
  • Data Analysis & Management
  • Unified Communication Services
  • Consumer Journey Mapping
  • Vocal Recognition
  • Social Media Tools

Challenge #10: Brand Equity

HR managers are the key to building a strong, positive brand for their company. They must provide adequate training and working conditions so that when employees leave, they can be influential representatives of what made this place great in people’s minds.

The importance of being an excellent ambassador cannot be overstated- if workers feel unhappy or fulfilled, the negative word-of-mouth will inevitably lead even more customers away from doing business with you.

The Solution: Solid People Strategy

Our human resources department is in charge of managing and boosting employee retention. They do this by creating work policies that are beneficial to their employees. Still, it’s not just about being “fair” – retaining good workers can be a significant strategic move for any company looking at its long-term prospects.

Create a flexible working environment

When you provide your employees with the flexibility and convenience of a flexible work environment, they will be more engaged in their jobs. This can lead to an improved balance between life outside of employment.

Working from home is an excellent way for employees with children or those who need to take care of their household duties while at work. The commute time can be cut down to ensure you get enough sleep, which will help improve overall productivity as well.

Provide opportunities for career growth

The number of BPO companies offering a formalized career path is rising. This means more opportunities for employees to grow and succeed within these companies, making them less likely to leave their job in favor of employment elsewhere with less potential or adventure each day at work.

The best way for a company to grow and develop its employees is by providing them with opportunities for constant self-improvement. This can be done in many ways, such as conducting seminars or training programs to help each individual reach their full potential on the job; giving tailored advice about what path would work well based on skill set preferences/aspirations. BPOs might also open up counseling teams made up primarily of qualified candidates wanting career guidance from those who know exactly where they’re going–the individuals themselves.

Competitive salary and address concerns of health, security, transportation, and food

To keep up with the demands of modern life, employees need more than just career opportunities. They want their essential benefits and salary rates competitive so they can afford a comfortable standard lifestyle in today’s busy world.

The study has shown that companies who provide employee benefits such as Health insurance, security coverage, and transportation allowance have seen positive results. Increased productivity leads to better morale among workers in those organizations – they’re much more engaged with their jobs.

Offer recreational activities, and basic facilities

The latest trend in the workplace is to create a more welcoming environment for employees. Companies are investing money into activities that will make them happy and productive, such as gyms or coffee bars with trendy interiors so people can enjoy themselves during their break.

The more engaging an environment they are in encourages them not to be burnt out from the excessive number of jobs given by employers. Ultimately, this makes it easier for both parties involved because there will likely remain loyalty towards one another if each party feels welcomed into something that provides personal fulfillment or happiness, separate from financial gain, as most traditional positions usually do nowadays.

The BPO industry is growing and is expected to grow at a rate of 20% in the next five years. This industry has come up with various solutions to overcome these BPO challenges. The future looks bright for the BPO industry, and we can expect more innovative solutions to tackle the everyday challenges we face.

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