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The Future of Business Process Outsourcing

It's easy to imagine a large call center with overworked agents and minimal job satisfaction. Many BPOs focus on cost-cutting rather than innovation, repairing equipment instead of replacing it.

However, this is only the case for some BPOs. And those BPOs are quickly being left behind.

BPOs can be a strategic decision that streamlines operations and reduces costs. The global BPO market is valued at USD 261.9 billion and is projected to grow at a CAGR of 9.4% from 2023 to 2030. BPOs offer access to technology and process expertise, improve efficiency, and reduce labor costs. They help businesses become more competitive and gain a competitive edge in the market. And the BPO landscape is changing, presenting an opportunity to run a more profitable business.

A New Breed of BPO is Leapfrogging the Traditional Outsourcing Providers

The BPO industry has undergone a significant transformation in recent years thanks to the integration of advanced technology and customer-oriented solutions. By partnering with BPOs, businesses can capitalize on the latest technology and expertise to deliver highly personalized and customized customer experiences. This strategic approach has enabled companies to maintain a competitive edge by providing exceptional customer service and support, which is crucial in today's fiercely competitive business landscape.

The digitization of the BPO industry has already had a profound impact on outsourcing practices. Companies now have the ability to utilize cloud-based platforms, automation, and AI to streamline operations and reduce costs. In fact, 91% of contact center leaders cite automation as a top priority for the coming year. This shift towards automation has also opened doors to a global talent pool, offering new opportunities for service delivery. Simultaneously, the industry's digital transformation has emphasized enhancing the customer experience.

The Customer Experience Is Key To Success

Businesses have recognized the significance of providing exceptional customer experiences. Companies that prioritize the customer experience observe a 3.5-fold increase in revenue growth compared to those that perceive it as a mere cost center. Entrusting customer service to external entities needs comprehensive planning, effective partnership, and seamless execution. Achieving success in this endeavor requires businesses to balance outsourcing costs and collaboration with a proficient partner. Furthermore, customer experience encompasses more than just delivering a superior product or service; it involves fostering relationships, instilling trust, and offering tailored solutions to individual customers.  In addition, BPOs need to develop a culture of innovation to foster experimentation, agility and change so that the status quo is not considered normal.

By leveraging data-driven insights, companies can create personalized customer experiences while improving operational efficiency. This adaptability has allowed companies to thrive in an ever-evolving market and presented a significant opportunity for companies to enhance their agility and profitability.

In order to remain profitable and competitive, BPOs must leverage data, acquire valuable insights, personalize their offerings, and foster innovation. Studies show that personalized experiences drive 80% of consumer purchases, underscoring the need for brands and the BPOs they use to continuously innovate, anticipate trends, and surpass customer expectations.

The New Breed of BPO

Welcome to the new breed of BPO - “The Experience Delivery Provider” - a cloud-first, innovative business model delivering exceptional customer experiences at scale.

  • Cloud-enabled
  • Saves cost on traditional on-premise/per-agent model -
  • Foster a culture of innovation that supports experimentation and agility
  • Realtime data and reporting
  • Personalized service
  • Multi and Omni Channel
  • Secure Hybrid working models
  • Customer Experience led
  • Profitable

Organizations can significantly lower their IT expenses and enhance scalability by adopting cloud technology. This enables them to better cater to their customer's needs, and offers added flexibility with a cloud-based contact center. Agents can conveniently work from any location with an internet connection, resulting in optimal resource utilization and improved customer service. Additionally, transitioning from the conventional on-premise/per-agent model to a cloud contact center can yield substantial cost savings for BPO organizations. Cloud contact centers eliminate the need for upfront hardware investments while offering enhanced reliability and security compared to traditional setups.

In addition, cloud contact centers offer the advantage of global talent accessibility unimpeded by geographical boundaries. With the ability to swiftly adjust capacity and enhance employees' work flexibility, leveraging the cloud for contact center services brings many benefits. Opting for a cloud contact center is a strategic decision that can greatly benefit any BPO organization.

The Future of BPOs is Bright

The future of Business Process Outsourcing (BPO) is promising, given that organizations are willing to adapt and invest in the right tools and processes. Technology can enhance BPOs' customer service and support operations, offering more advanced services than traditional outsourcing providers. BPO companies must invest in the right technology, well-trained staff, and efficient management practices to achieve optimum results. By leveraging the right resources, BPOs can unlock new opportunities and maximize efficiency and cost savings.

So whilst the traditional, inflexible, on-premise BPOs may be a dying breed, the cloud-enabled, agile, and innovative BPOs will surely thrive.


Local Measure, Engage is a pre-built contact center platform powered by AWS and available via the AWS Marketplace.