If you have to point out the fastest growing industries globally, Business Processing Outsourcing (BPO) is on the list. How top BPO trends will affect the future of BPO Industries in 2022 and the ongoing years might greatly surprise you.
The covid-19 pandemic triggered more growth for Business Process Outsourcing (BPO)
While the Covid-19 global pandemic might have negatively affected the economic growth around the world, in the long run, we are still seeing an increased demand for BPO. Grand View Research in 2022 stated that, by 2030, the global BPO market could hit USD 525.2 billion, registering a CAGR of 9.1% from 2022 to 2030.
The Covid-19 pandemic has created the need for effective remote workplace management and operational cost-efficiency. We see 2021 as the year of transformation in many industries when companies decide to outsource their business processes. Especially the tasks that require a large pool of skilled and specialized individuals, which is quite complicated and costly to manage, or the tedious and time-consuming but essential tasks.
Some BPO Outsourcing facts and figures
- IT Sourcing is reported to reach US$ 526.6 billion in revenue in 2021 and expected to reach US$ 682.3 billion by 2027, forecasted to register a CAGR of 4.13% during 2022-2027 (Mondor Intelligence)
- 70% of businesses choose to outsource to reduce costs (Deloitte)
- Total IT Outsourcing Budget was increasing from 12.7% in 2019 to 13.6% in 2020 (Computer Economics’ IT Outsourcing Statistics 2020/2021)
- 66% of larger companies (50+ employees) are ready to outsource, compared to only 29% of smaller companies.
Top 5 BPO trends that create the future of the BPO Industry
As the BPO industry is thriving, here are some BPO trends that bring an impact and make significant changes for the end of the BPO industry.
1. Strategic Partnerships in BPO become significant
Flourishing sustainable relationships with BPO partners is what businesses are aiming for. To benefit all values from BPO partners, businesses now have involved their BPO partners in the decision-making and strategic plans. It’s common in small and medium-sized companies, where resources are limited.
The BPO partners’ expertise is beneficial during the challenging business situation since the Covid-19 pandemic. However, businesses only pick strategic and long-term partners to share their confidential information.
A long-term partnership does not solely impact a business’s brand image but also directly affects the business’s work efficiency. A long-term BPO partner will understand what their clients want and plan for the future. Based on those, BPO partners will look further to find creative solutions to aid their clients in achieving their goals.
2. Increasing needs for Cloud-based BPO Services
The Covid 19 has changed our traditional work style. Since the pandemic, remote work has become a popular trend, growing the demand for cloud-based tools.
Gripping that remote work is cost-effective but still maintains productivity and improves employee efficiency, many businesses invest in cloud-based tools to optimize the remote work process.
According to a 2022 Cloud-based BPO Market statistic, The global Cloud-based BPO market size is projected to reach multi-million by 2027, compared to 2022.
This opens up enormous opportunities for cloud-based BPO services. They must understand clients’ needs and what they want from a cloud-based tool. Then, creating an efficient tool to help clients effortlessly solve all tasks remotely.
Cloud-based tools that help delegate and manage tasks like Asana and Trello are no longer new. Besides, we also have chat apps and video telephony software like Slack, Zoom, or Skype.
These are all vital tools in the context of work remotely preferred. And it’s cloud-based BPO services era to improve and develop excellent means to meet or anticipate client demands.
3. Automation has become the most effective to solve massive amounts of data.
Multi-channel marketing is rising, so customers can approach and learn about a company’s products via different platforms. On the other side, businesses can also reach their customers through social channels. As we all know, customers hate waiting, always wanting an immediate response. Therefore, if a company can’t manage to deliver a quick return, it may lose its potential buyers.
But with a vast customer density on all platforms, it’s challenging for businesses to take care of individual customers. The practical solution now is automation tools.
Generating automation tools is a high priority to BPO services when providing customer services to clients. These tools will help BPO companies achieve advanced service efficiency, reduce labor costs, and retain clients.
4. Outsourcing is still the most cost-effective strategy for businesses
Comparing in-house and outsourcing staff, outsourcing will prevail. When recruiting an in-house team, companies must pay them a salary, insurance, travel, lunch allowance, and work equipment (computer, phone, software, etc.).
Not to mention, growing staff also requires a bigger workspace. Businesses may need to rent a new, larger office or expand their workspace to set room for new members.
And yet, businesses may even waste money on training courses and replacement costs if the new one quits immediately after the training period.
Meanwhile, using outsourcing personnel, businesses only pay the price for the service plan they ordered. The package already includes agents’ payments and training.
They don’t need to worry about taxes or employee financial benefits. There is no need to rent a new office, or no fear of wasting training costs.
If businesses hire in-house staff to handle Finance & Accounting, they need a more extensive investment in training and maintenance due to expertise requirements. At the same time, outsourcing can help enterprises to cut down on that costs.
By hiring outsourcing services, business owners have more time to focus on business goals. For example, they are building a long-term strategy or raising revenue.
5. Data Security is the most concerning issue in BPO decision
Data security is always a sensitive and persistent issue for every business. Partnering with BPO services, companies may need to provide them with some confidential data for work. It ignites the risk of information leaks at any time.
Therefore, businesses tend to choose BPO partners who apply modern software and methods to ensure data security. It is an opportunity and a challenge for BPO services.
If a BPO firm can perfectly meet clients’ security demands, it may be their chosen one. However, it costs a lot to own top-notch security software, so not all BPO businesses are willing to spend money or can afford such tools, pulling down BPO businesses’ chances of success when working with clients.
Here is a summary of the latest BPO trends that substantially impact the BPO industry’s development. Thanks to these trends, BPO businesses will know what they lack and need to improve to meet clients’ needs.
BPO services that can catch these trends are expanding their chances of getting more clients and making better revenue.
At Innovature BPO, we keep up with the above trends and always have the proper investment to bring our clients excellent service. We also constantly learn, improve and research clients’ insights to anticipate their needs and be sensitive to the latest trends.