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When people mention outsourcing, they often think of its enhanced cost efficiency and improved service quality. However, service providers increasingly go beyond their roles as optimization partners to become innovation catalysts.
Business process outsourcing (BPO) companies house a diverse talent pool with specialized skills to meet evolving tech requirements and market demands. These firms leverage modern solutions to streamline back-office and customer-facing processes. They also partake in innovation ecosystems to propel the industry forward.
How exactly do BPO organizations navigate these innovation ecosystems? How do they adopt technological advancements to bring value to clients?
Continue reading to learn more.
The role of BPO in innovation ecosystems
Innovation ecosystems bring together stakeholders from private and public sectors to foster and sustain transformative efforts. They aim to co-create value and deliver impactful advancements based on market demands, societal needs, and technological trends.
What is BPO’s role and responsibility amid all these? Find out below.
Bring diverse perspectives
Innovation requires fresh and unconventional thinking; outsourcing meets this necessity by bringing diverse viewpoints. BPO companies employ a global talent pool with distinct cultural backgrounds, industry experiences, and educational achievements.
BPO workers typically serve clients across different sectors, such as customer service, information technology (IT), and healthcare. This exposure helps them hone cross-industry knowledge and understand various business conditions.
BPO employees also have unique market insights they can share with stakeholders within innovation ecosystems. Such perspectives include consumer trends, cultural nuances, and legal considerations that might not be readily available within a single-sector, innovative environment.
For instance, a U.S.-based provider of medical devices adopts strategic outsourcing to rapidly develop an integrated electronic health record (EHR) and telehealth system. The company also aims to make the platform global.
Here’s how a BPO team’s diverse perspectives contribute to the project:
- The BPO provider brings deep insights into local cultures, healthcare practices, and patient needs. This knowledge helps the client build a tailored EHR and telehealth system that is culturally acceptable in the target region.
- The third-party service vendor offers cross-industry and technical knowledge to enhance device functionality and user-friendliness. The BPO team leverages its experience developing internet of things (IoT)-based consumer electronics for other markets to produce a more innovative and interoperable EHR and telehealth system.
- The BPO vendor uses advanced analytics tools to accelerate big data processing to understand patients’ demand patterns and device preferences. The collected insights help sort diverse needs and create solutions for personalized patient care.
Address skills shortage
According to Wiley’s 2023 market insights, 34% of polled organizations outsource to close the skills gap. Usually, companies lacking the resources to implement upskilling and reskilling programs hire third-party workers to address the talent issue.
BPO companies help innovation ecosystems fill the need for diverse skills, some of which might be scarce or expensive to acquire locally. They provide access to a global workforce with specialized skills required for various innovation projects, including data science, engineering, or software development.
Because BPO workers are already well-trained and certified, they can be deployed immediately to support urgent innovative projects. Depending on the agreed-upon terms, clients can pay for their services per hour, per output, or per month.
Besides delivering varied perspectives, BPO teams act as a bridge between different players within the ecosystem. They handle market research, data collection, and documentation to streamline knowledge sharing and information analysis.
Optimize resources
Typical businesses work with BPO companies to lessen their operating expenses. In its 2023 Global Shared Services and Outsourcing Survey, Deloitte confirmed that cost reduction is the top objective of BPO clients.
Outsourcing routine tasks, such as big data entry and analysis, allows organizations to cut labor and infrastructure costs. This competitive advantage frees up considerable funds that the clients can allocate to core innovation processes, such as planning and designing unique products.
In particular, startups conducting an innovation program benefit from resource optimization. Their limited funds hinder them from procuring skilled professionals or advanced solutions. BPO gives startups access to such critical resources at affordable service packages.
For example, AppSumo leveraged BPO for low-cost innovation when it began. The software marketplace started with only $60. Its founder hired a software engineer who helped create the app’s payment channel for the said amount. With such a minimal initial investment, AppSumo secured $80 million in revenue in 2023.
Technological advancements facilitated by BPO companies
BPO companies adopt and deploy emerging technologies to deliver cost-effective support. They use modern tools to drive innovation across industries.
Here are some key technological advancements facilitated by service vendors:
- Robotic process automation (RPA) assists providers in automating repetitive, rule-based tasks. RPA helps speed up information gathering and input for an innovative project’s paperwork. The solution also minimizes human errors and streamlines operations.
- Artificial intelligence (AI) and machine learning (ML) power analytics tools that rapidly analyze datasets and generate insights into potential risks and opportunities. These tools help BPO teams and stakeholders within innovation ecosystems make data-driven decisions.
- Cloud computing provides secure and scalable digital data repositories, eliminating the need for on-premises data centers. Cloud solutions also enable smooth data exchange online, allowing BPO teams and clients to work together remotely.
- Cybersecurity technology helps information technology (IT) support providers implement robust measures to protect the sensitive data of innovative projects. It features security capabilities, including encryption, access control, and multifactor authentication.
- IoT allows BPO vendors to integrate their systems with the client’s platforms. It enables real-time data monitoring and supply chain management, especially during product testing and distribution.
The bottom line
BPO companies help establish a dynamic environment critical to fostering continuous innovation. They provide diverse and cross-industry insights to assist in producing creative and unique products and services.
Moreover, outsourcing addresses skills and resource gaps for innovative projects without requiring considerable investment. Service providers offer access to specialized skills at competitive pricing, helping save expenses while ensuring high-quality outcomes.
To ensure cost efficiency, BPO vendors facilitate the use of emerging technologies. These advanced tools allow them to help clients from innovation ecosystems fast-track their ingenious efforts.
Do you want to collaborate with an innovation catalyst at an affordable service charge? Let’s connect and discuss your possible options. Unity Communications leverages a skilled workforce and robust tech to help attain your innovative targets quickly and cost-effectively.
