Creation, the latest and updated technologies and global contest are said to be the continual driving constraints for the expansion and growth of the industry of business process outsourcing globally.
In between the years 2012 and 2016, the industry of BPO expanded at an annual rate of growth compounded annually at the percentage of 4.4% so as to reach the added up revenue of one hundred and forty billion dollars in the year 2016.
With regard to the early months of the year 2017, the field had main concerns in relation to the increment of skill shortages, increment in political gridlock and trade protectionism.
This continued for few months, on heading forward, the industry regarding BPO is fully showing an increased level of optimism spread over the market construing growth and a level of reduced regulations.
The companies are as well encouraged in relation to the advantages garnered via creative technologies like the process automation and cloud computing.
The outsourced global service providers are thought to utilize updated technological oriented innovations so as to address effectively the market challenges, thereby enhancing the services and product so as to maintain the talent shortages at the same time assist in keeping the cost incurred in operations low.
What does the year 2018 behold for Business Process Outsourcing Industry?
In this particular blog, I will highlight the 2018 trend on the basis of BPO industry.
Trend – New Emerging Technology
For years, the BPO industry has provided the businesses with a solution which is cost effective in nature. The evolving technologies like social media, cloud computing, automation, and software are utilized by Business Process Outsourcing to accelerate the growth and decrease costs. This is a trend which is likely to continue in the year 2018.
Below mentioned is a trend which is expected to rise in the field of BPO technology in the year 2018.
- Great level of significance on process automation:
The newly build technologies which have emerged recently over the years involving RPA or Robotic Process Automation has impacted the BPO field significantly. Basically, the manner of work which gets outsourced to various remote areas acts as a bottom of the pyramid for the work. Moreover, as the capabilities of automation advances, the processes become ripe for removing the candidates. With its basic level of cost savings, efficiency and speed, the RPA have slowly but steadily made its way straight into all the industries and various kinds of businesses. This turnaround has impacted the operations of BPOs significantly leading to loss of jobs. The expanded enterprises do not feel the requirement to hire a lot of employees for meager tasks like insurance claims processing and for the entry of data because these are the tasks which can easily be handled by various computers.
The service providers and enterprises are generally adopting tools which can aid the automation. With relevant customizable software, the cloud-oriented tools can promote adequate automation; therefore the less skilled BPO sectors are facing high risk.
The BPOs in India expect to shrink by 14% in the year 2021. However, on the greener side, the automation can also make considerable way for employees who are highly skilled. In the place, the Philippines, about 700 thousand high and medium skilled jobs are likely to be created by the year 2022.
While it is considered a task which is uphill for most of the Business Process Outsourcing service providers, the basic top-level players in this particular industry have been working efficiently to make the RPA part articulately effective, this will soon become a relevant portion of their portfolio for client services.
This is considered necessary because the automation is a process which is accessible to all the customers of the Business Process Outsourcing service providers. The third party or vendors can support easily the generation of the onsite shared teams so as to develop the internal abilities for the RPA. Hence, in case an outsourcing related firm is not able to give cost efficiencies which are headed by the automation, then the client might readily thrive on the process in-house.
This is a particular trend which is likely to dominate in the year 2018 while the outsourcing firms are said to automate more such processes so as to bring their innovation to the prevailing clients to ameliorate the productivity and gain back the advantage for labor cost.
