The remote first business environment constantly changes, making it challenging for BPO (business process outsourcing) companies to provide consistent and reliable services. Factors such as rapid technological advancements, changes in the work environment, economic uncertainty, inflation, and increased competition create a challenging environment for BPO companies to navigate, making it difficult to effectively plan and execute outsourcing strategies. As a result, enterprise leaders are hesitant to outsource their business processes. In response, BPO providers must tackle the four leading concerns raised by enterprises in our recent HFS Pulse Survey:
- Risk and compliance: Enterprise leaders are looking for BPO leaders to manage their key risk and compliance concerns, including data security and privacy laws, industry regulations, lack of oversight and control, intellectual property rights, contractual obligations, and technology risks. These concerns make it difficult to outsource their key business services. To overcome these challenges, BPO service providers must implement robust measures and ensure compliance with relevant laws and regulations.
- Value propositions: BPO companies often focus on cost savings as their main value proposition. BPO providers that offer added value propositions such as high-quality services, innovative solutions, agility, and excellent customer service will be more likely to win and retain clients in the long run.
- Unique scope of work: Most enterprise leaders feel their work is unique as it is specific to their organization and industry and, therefore, difficult for outside parties to replicate. They wonder if BPO providers can meet their quality and customization expectations within their budget. BPO providers that understand the client’s organization and industry and offer better-quality customized solutions will gain an advantage in the market.
The Bottom Line: To succeed in the dynamic virtual business environment, BPO companies need to implement strong measures for compliance, prioritize high-quality services, and maintain transparency and communication with clients to overcome negative perceptions and build trust. BPO providers should focus on addressing the specific industry challenges of their clients instead of solely emphasizing cost savings. By doing so, BPO providers can differentiate themselves from competitors and gain a competitive edge.
Explore the HFS Pulse Dashboard
Take a look at the breadth of data in our Pulse Dashboard, which showcases data about current and future demand trends for technology and business services and related emerging technologies. See more here.
