What Is Business Process Outsourcing?
Business Process Outsourcing (BPO) is when a company or organization assigns a specific task, or tasks, to an external third-party provider.
The functions selected for BPO are often essential to running the company but aren’t unique to the company’s market; this work typically involves standard services like payroll, accounting, and other aspects of HR. These tasks don’t usually differ from company to company, so there is value in hiring a third-party partner specializing in handling them smartly and efficiently.
Companies and organizations choose to engage with BPO mainly for two critical areas of work: back-office functions, referring to processes that do not involve the client, such as accounting, IT, payroll, and HR; and front-office operations, those processes that do interact with clients such as sales, customer services, and marketing.
Being aware of current business trends is essential to keeping ahead in your industry, for both companies looking for BPO providers and the BPO providers themselves.
Here are 7 key trends you can expect to see in 2022:
- Rise in Remote Work
The pandemic has made working from home a more frequent reality across many industries. A survey conducted by Upwork in 2021 found that over 50% of the American workforce was working remotely (source).
With employee health and safety being paramount, it is not surprising to see companies turning to full or hybrid remote work schedules to continue operating.
There are also other indirect benefits of remote work, such as reduced operating costs and greater ease in global expansion.
BPO services providers can put you ahead of the competition in integrating the systems required to run a hybrid office.
- Higher Demand for Cybersecurity
Cyberattacks have increased in staggering numbers with the expansion of technology and the increased reliance on it–particularly in light of the pandemic and the move towards online work.
A report in 2021 found that cyberattacks had increased 600% since the start of the pandemic, with attacks varying such as malicious software, phishing, data breaches, and more (source).
Now more than ever, companies are looking for services that can provide robust and impenetrable security to protect their files, data, and client information.
- More Progressive Web Apps (PWAs)
Progressive Web Apps function as both web and phone apps. These innovative solutions eliminate the need for users to download the application on their phones, which can sometimes be a time-consuming process.
With PWAs, both the company and the client can communicate comfortably and efficiently through the application. The interest and demand for such this technology are projected to grow with an ever-expanding market value (source).
- Increased Market for Cloud-Based Technology
With more and more remote offices, cloud-based technology remains crucial to companies across industries. Cloud-based technology allows for file storage, data, and software; authorized users with access to the cloud can also share files and information quickly and securely.
Maintenance costs are reduced without the need for physical hardware for storage, and lost files or data can be covered swiftly, minimizing work delay.
- Greater Focus on Specialization
Considering the changes that companies have seen in recent years, it is no surprise that the demand for specialized experts in tech and IT has increased exponentially.
Handling a company’s numerous websites, apps, and cyber-related issues can be overwhelming, causing many to seek out professionals specifically trained and proficient in helping a company or organization keep their online systems updated, efficient, and problem-free.
- Continued Development of AI
Creating artificial intelligence (AI) that can take over manual tasks continues to be a sought-after goal.
The aim is to achieve more effective product control and reduced labor costs. For example, having AI in customer service could minimize handling time and process data faster. This can allow the staff members in customer service to give more time and attention to the more complex customer issues.
- Focus on Global Teams
In light of the current world situation and many borders being closed, the need to strengthen the global network of a company has risen as well. Many companies have part of their staff working at home in other countries. It is paramount to ensure that each global team member feels valued and supported despite the physical distance.
Communication between the staff and understanding the needs of every team member’s current situation helps build a sense of unity that isn’t disrupted or damaged by the lack of physical presence.
It is no surprise that the technological aspects of business management have increased, especially with COVID-19 and the increased risk around in-person workspaces.
These business process outsourcing trends reflect a dynamic shift towards remote and technologically driven work. This will undoubtedly continue to do so in the years to come.
The BPO industry is continuously evolving to meet global demands. The technologies becoming more commonly used to meet these demands can boost your company’s security and efficiency. To make the most of these technologies and opportunities they represent, you can contact INS Global today to learn more about the way BPO solutions can aid your global mobility and expansion.