According to a report from Statista, 74 percent use the business process outsourcing industry to meet their IT requirements.
This report is from 2021. Crazy, isn’t it? Three years later in 2024, we can see through everything around us now and say that things have drastically changed since then and many other BPO trends are expected to come by in the future again.
In such a scenario, the need of the hour is to answer questions like:
- What are the current business process operations trends?
- How will AI revolutionize the BPO sector?
- What trends will help BPO providers to stay ahead of the competition?
Do you also want answers to the same questions? If yes, it is time for you to dive into the blog as we have discussed some new and interesting business process outsourcing trends in 2024 and beyond.
What is the State of BPO Industry Today: A Quick Glance!
UnderstandingĀ how does business process outsourcing worksĀ and what its current state is can help you get more clarity of the time ahead.
Back in 2020 when the COVID-19 pandemic hit the world, business process outsourcing was one of the most affected industries. The BPO sector faced many challenges but found its way out. Slowly but steadily, the BPO providers came back to track with the help of exceptional innovations and technological advancement.
Cut to the present, the BPO sector has now become more flexible as well as accessible. Leading market research companies like Technavio has estimated that Indian BPO services market size will be increased by USD 151.59 billion between 2022 and 2027. Such forecasts clearly explain that no turbulence could stop the growth of BPO industry.
The credit for this growth goes to exceptional technologies we have todayāfrom cloud-based solutions facilitating operational efficiency and AI tools improving quality of services to advanced cybersecurity measures cutting down on security issues.
All these technologies combined with effective strategies and quality tools have helped BPO industry to stay ahead of the curve.
As we are now in 2024, the BPO sector awaits more trends, which we will discover in the next section.
Top 5 Business Process Outsourcing Trends in 2024 You Must Know
Here are the top five business process outsourcing trends that will rule BPO industry in 2024 and beyond:
1. Demand for Next-Generation Services
Next-gen BPOs have become a thing of the present and the cornerstone of these BPOs are, undoubtedly, digital technologies. From Artificial intelligence (AI) and real-time analytics to Robotic Process Automation (RPA), BPOs are utilizing almost every digital technology to:
Examine a wide range of datasets Retrieve actionable insights Improve operational productivity Offer customized & responsive customer experience And the list continues…
With digital technologies ruling the industry, some experts say that call center jobs are at high risk. Tata Consultancy Services (TCS) CEO, K Krithivasan, in an interview with Financial Times, forecasted a major shift in the BPO sector with AI reducing the need for traditional call centers within a year. While this prediction remains a debate, it calls out one thing very clearly that AI and several other digital technologies are being extensively used today (and there is no escaping this demand!).
2. Implementation of Cybersecurity Measures
With the advancement of digital technologies, security is a big concern for BPOs today. As per India Threat Lanscape Report by Cyfirma, India is the most targeted country across the globe that faces 13.7 percent of all cyber-attacks.
In such a scenario, BPO services/call center outsourcing providers can pose a significant risk to the security of any business. Given that they manage numerous sensitive client data, there will always be room for different security threats.
This is where the need for cybersecurity comes into the picture! BPO providers are already relying heavily on advanced cybersecurity technologies to keep breaches at the bay.
In the coming times, cybersecurity will no longer be a choice but a necessity, which will help business process outsourcing providers to maintain customer trust.
Leverage the next-gen solutions for your digital customer experience
3. Advanced Voice Recognition Technology
Voice recognition technologies are not a new concept. It has always been considered and utilized by BPO providers, but it is recently that this technology has seen a drastic leap forward with machine learning. As a result, it has now become a must-have tool for BPOs as it offers multiple benefits such as-
Enhanced customer experience Increased productivity Improved data collection and analytics Customized client journey Reduced operational expenses
Additionally, unlike traditional IVR systems, intelligent voice recognition technologies can understand nuanced commands, decipher accents, and analyze communication styles of different individuals.
We believe these are some definite reasons why it is predicted that the global voice recognition tech market will reach almost 50 million US dollars in 2029 (Statista).
4. Expansion of Cloud-Based BPO Solutions
Cloud-related BPO services are yet another important business process outsourcing trend you must know. For the uninitiated, cloud-based solutions, simply means, outsourcing services through cloud computing mediums.
In this, BPOs can use remote servers that are typically hosted on the internet to store, handle, and optimize data rather than utilizing physical infrastructure.
All that said, here are some top reasons why BPOs are currently considering cloud-based BPO solutions:
Improved flexibility and accessibility Saved expenses Accurate & quick response to clients More business agility Enhanced collaboration Zero maintenance requirements Seamless business scalability
In short, cloud-based business process outsourcing solutions are here to stay to transform customer experience in a way that no one had ever thought possible.
5. Embracing Blendshoring
This is also a very recent business process outsourcing trend that everyone is going all gaga about.
This strategic concept helps organizations to get multiple benefits, like:
Saving expenses from offshore centers Aligning cultures from nearshore partners Availing excellent expertise from onshore teams
Blendshoring model empowers businesses to stay ahead of the dynamic conditions of the market, ensure compliance, and ensure continuous operations.
The Future of Business Process Outsourcing in the Next 10 Years
In our blog we explored five emerging trends in the business process outsourcing sector that offer a glimpse into the industry’s future. It’s safe to say that the future appears bright and full of transformation.
The industry experts predict expansion foreseeing the BPO market to hit $435.89 billion by 2028, which is equivalent to around $1,300 per person in the US. This growth is anticipated to be fueled by advancements in technology in AI and automation.
Additionally, the sector is set to pivot towards knowledge centric services with an expectation that 60% of BPO providers will offer specialized analytics and AI driven insights by 2025.
In essence, as the industry evolves, only those companies can succeed who are able to stay ahead of all the trends that lie ahead in the dynamic world of business process outsourcing.
