Thought Leadership Series

Change or Die? What’s Next For BPO?

How Business Process Outsourcing must become an Experience Delivery Provider.

Improving customer experience in Business Process Outsourcing contact centers

BPOs traditionally don't have a good image. When we think of a BPO, it is easy to imagine a sizeable on-premise call center with rows of overworked agents with minimal job satisfaction and often perceived to deliver a poor customer experience. A BPO is an organization that offers little in the way of innovation as they are focused on a race to the bottom on cost, bolting things together, sweating existing technology assets and repairing rather than replacing equipment so they don’t have to spend any more money than they have to.

However, this narrative is far from the truth.

Outsourcing a business process is transactional and often a cost-based decision, so it is little wonder that is how BPOs are perceived.  However, it is crucial to recognize that BPOs can also be solid strategic decisions. The global business process outsourcing market was valued at USD 261.9 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. BPOs offer businesses a way to streamline operations and reduce costs. As technology advances and global markets become increasingly interconnected, organizations turn to BPOs to help them manage their processes and achieve their goals.

BPOs can help companies focus on their core competencies, improve efficiency, and provide access to the latest technology and process expertise. They can also provide better customer service, reduce labor costs, and help companies become more competitive in the global marketplace. By leveraging the capabilities of an experienced BPO, companies can improve their overall performance and gain a competitive edge in the market.

Behind the scenes, a seismic shift is occurring in the BPO landscape, which has enormous ramifications for the industry's future if it does not change. But it also presents a huge opportunity to run a more agile and profitable business if it does.  

A new breed of BPO is leapfrogging the traditional outsourcing providers.

The modern BPO is a far cry from its outdated image. BPOs are now deploying innovative cloud and AI/ML technology to provide unparalleled customer service experiences. With new technologies such as AI and automation, BPOs can deliver services more efficiently and provide more value to their customers. They are also becoming more customer-centric by offering personalized customer service and solutions tailored to each customer's needs. By partnering with BPOs, organizations can access the latest technology and expertise to deliver a superior customer experience.

The digitalization of the BPO industry has already significantly impacted how outsourcing is done. Companies can now use cloud-based platforms, automation, and AI to streamline operations and reduce costs. Almost all contact center leaders (91%) report that automation is a critical priority in the next year. This shift has also enabled companies to access a global talent pool, which has opened up new possibilities for the delivery of services. At the same time, the digital transformation of the industry has also resulted in an increased focus on customer experience. Companies are now able to use data-driven insights to create personalized experiences for their customers, as well as to manage their operations better. This has allowed companies to stay competitive in an ever-evolving market. These changes have created a huge opportunity for companies to become more agile and profitable.

The Customer Experience Is Key To Success

Businesses around the world, more than ever, are focusing on delivering an exceptional customer experience. Companies that view customer experience as a value center drive more than triple the revenue (3.5x) growth of companies managing service as a cost center.

Naturally, some businesses need to outsource customer service, and therein lies the difference. All of a sudden, it is no longer a business process that is being outsourced…. it is an entire experience that needs to be carefully planned, managed and delivered. The customer experience is vital to business success by increasing loyalty and revenue. At the same time, businesses must also be aware of the cost implications of outsourcing customer experience. Working with an experienced partner who can provide the necessary skills, insights and solutions at a reasonable cost is essential. With the right partner, businesses can ensure that they deliver the best possible experience for their customers while also being mindful of their own bottom line. Remembering that customer experience isn't just about providing a great product or service is also essential. It fosters relationships, builds trust, and offers valuable solutions that meet customer needs. Ultimately, the customer experience should be tailored to each customer so they have a unique, memorable, and satisfying experience with the business you represent.

An exceptional customer experience requires data, insight, personalization and constant innovation to allow brands to remain profitable and competitive. Businesses need to be able to analyze customer data, develop customer insights, and tailor their products and services to the individual needs of their customers. 80% of consumers were more likely to purchase when brands offered personalized experiences. Brands need to be forward-thinking and continuously develop new and innovative solutions to stay ahead of trends and keep up with customer expectations. With the right data and insights, brands can use this information to create personalized experiences that keep customers engaged and loyal.

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

With the cloud, organizations can reduce their IT costs and increase their scalability, making it easier to meet the needs of their customers. An example of this is Highpoint Servises Network which has reported a reduction in expenses of 40% following their move to the cloud. Additionally, a cloud-enabled contact center allows for greater flexibility, allowing agents to work from anywhere with an internet connection. This allows for more efficient use of resources and improved customer service. With a move from the traditional on-premise/per-agent model to a cloud contact center, BPO organizations can benefit from significant cost savings. Cloud contact centers require no upfront capital expenditure on hardware and are often more reliable and secure than traditional models.

Cloud contact centers are not limited by geographic boundaries, making it easier to access talent worldwide. With the ability to rapidly scale up or down and the potential to provide employees with a more flexible working environment, there are many advantages to leveraging the cloud for contact center services. Investing in a cloud contact center is a smart move that can benefit any BPO organization.

Local Measure’s Cloud Contact Center Platform For BPOs

At Local Measure, our vision has always been to build a world where every customer experience is exceptional. Our intelligent contact center platform, Engage for Amazon Connect, is designed to make this vision a reality by providing the most straightforward experience for customers and agents alike.

Local Measure is working with several of these new breeds of BPOs globally. Once migrated to the cloud with Amazon Connect and Local Measure’s Engage Platform, each has been able to quickly and easily spin up new end-customer assignments (sometimes within hours), innovate on the brand experience in seconds and deliver new routes to the customer.  This is game-changing for a BPO market traditionally constrained by long-term contracts and strict rules. Local Measure’s technology allows these new BPOs to deliver better customer service, faster times to market, and more cost-effective operations. It’s just one example of the great customer experiences enabled by cloud-based technologies.

More importantly, these BPOs can now use the data captured from their agents to play back insights to the brand client to move from a low-cost outsourcer to a provider of real-time business insight. This enables them to deliver exceptional and scalable customer experiences and more profitable engagements.  Not only are BPOs leveraging data to offer insights to their clients, but they are also using advanced technologies to provide even more innovative solutions and services. BPOs can offer more cost-effective solutions, improved scalability, and streamlined customer experiences. With the help of these cutting-edge tools, businesses can not only save costs but also stay ahead of the competition.

Local Measure and AWS have been quietly changing the BPO landscape - for good.

Local Measure works closely with AWS to bring innovation and cost efficiencies to BPOs in a bid to change the landscape for the better. “Amazon Connect, the omnichannel cloud contact center service helps the new breed of BPO to be agile and innovative. Amazon Connect usage based pricing, embedded AI & ML, scalable capacity, and pace of technical innovation enable the BPO to undertake low cost experimentation that contributes to an enduring culture of innovation”. - Simon Burke, Head of CX Go-To-Market APJ, Amazon Web Services.

Read on to learn about two BPOs successfully transforming their business with the cloud:

Highpoint Service Network Improves Contact Center Performance with Amazon Connect to Attract Enterprises Seeking Tier-One BPO Services

Highpoint Service Network has significantly enhanced its contact center performance by transitioning to Engage for Amazon Connect. This cloud-based contact center as a service has enabled them to provide superior customer service to multinational corporations, thereby giving them a competitive advantage. Additionally, the platform has helped HSN lower its call abandonment rates by more than 50% and reduce expenses by 40%. They intend to modernize their contact center further using services such as Amazon Polly and Contact Lens for Amazon Connect. Read the entire case study here.

Another example of a BPO that is challenging the status quo is SupportZebra.

SupportZebra - The BPO Innovating Towards Better Customer Experience

SupportZebra, a BPO company in the Philippines, uses Amazon Connect and Local Measure's Engage platform to offer better services to its diverse clientele of US-based businesses. They faced challenges with their previous system while working with TelemedRN, which delayed patient responses and hampered QA and training. To address these issues, SupportZebra chose Engage for its omnichannel capability and consumption pricing model, leading to a 30%-50% reduction in handling time and better training. The platform offers multiple channels and reduces complexity, resulting in a better customer experience. SupportZebra's hybrid model allows agents to work remotely and onsite, ensuring continued growth and innovation for improved services. Read the entire case study here.

The Future of BPOs is Bright

The future for BPOs is bright – as long as organizations are willing to embrace change and invest in the right resources and processes. Seeing how technology enables these new BPOs to transform customer service and support operations with actionable data is exciting. By leveraging automation, artificial intelligence and analytics, these new BPOs can offer far more advanced services than the traditional outsourcing providers. Companies must be willing to invest in the right technology, highly-trained staff, and strong management practices so that their clients and they can reap the full benefits of outsourcing. By leveraging the right resources and expertise, BPOs can unlock new opportunities and maximize efficiency and cost savings.

To find out more about how your BPO can easily become one of the “New Breed” with Local Measure and AWS, Click Here

October 11, 2023

Sheila Walthoe

Marketing Director

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