Table of Contents
Sticking to legacy systems might reduce costs, but it does not save your business process outsourcing (BPO) enterprise from the headache of countless bugs and lags. These issues delay service delivery and decrease workforce productivity.
Thus, many BPO providers must undergo digital transformation to mitigate such impacts. They must leverage cutting-edge tools to improve efficiency and reduce expenses in the long run, enabling them to provide clients with streamlined support at competitive pricing.
Do you want to learn more about how emerging solutions revolutionize outsourced services? Sit tight as we dissect each of their contributions in this article.
How emerging technologies transform BPO operations
Digital transformation fundamentally revamps how service providers operate and deliver value to their clients. This pivotal approach involves using digital technologies to develop or enhance new and existing business processes in alignment with fluctuating market dynamics.
Such advancements empower BPO companies to unlock new levels of efficiency, innovation, and customer-centricity. By adopting emerging solutions, providers can seize opportunities for growth, differentiation, and sustainable success that extend to customers.
The discussion below illustrates what BPO companies gain from embracing digital transformation and how certain technologies impact outsourced operations.
Generative AI for enhanced content creation
In its latest report, Deloitte Digital noted that the demand for personalized, timely, and relevant content grew by 1.5 times in 2023. However, marketing units only achieved 55% of this need.
Generative artificial intelligence (AI) has helped companies produce high-quality content while improving employee productivity. In addition, Deloitte found that early adopters of the solution experienced a 12% return on investment (ROI).
BPO providers specializing in marketing are among the enterprises that benefit from generative AI for improved content creation. They use this modern tool to augment their human workforce’s creativity and capability to perform the following tasks quickly and effectively:
- Create prompts and outlines.
- Research credible sources.
- Complete sentences or paragraphs according to the writer’s intent.
- Summarize or paraphrase long and complex thoughts.
- Apply search engine optimization (SEO) techniques.
RPA for accelerated customer service
Third-party contact centers optimize robotic process automation (RPA) to deliver faster and more efficient customer service. They deploy RPA alongside chatbots to speed up data collection and guarantee round-the-clock inquiry responses.
Based on predefined rules and metrics, RPA automates ticket routing to reduce wait times, regardless of the channels used. The tool automatically categorizes and routes customer support requests to the appropriate departments upon receipt, ensuring consumers receive the best resolution at the right time.
In addition to accelerated support services, RPA enhances the customer experience by personalizing interactions and product recommendations. RPA bots leverage historical transaction data to tailor responses based on customers’ preferences and current needs.
Cloud computing for streamlined project management
BPO companies simplify project management and execution using cloud computing. They invest in cloud-based platforms to safely store and share important digital files with authorized team members.
Because many outsourcing transactions occur online, cloud computing is crucial to streamline remote collaboration between dispersed clients and BPO teams. Cloud-native tools facilitate smooth virtual meetings, document exchanges, and real-time interactions.
Furthermore, cloud-based project management platforms enable the real-time tracking of task milestones and potential bottlenecks. These applications provide visibility into project status and employee performance, allowing proactive decision-making during unexpected disruptions. Here are some of the project management tools BPO providers use:
- Jira
- Trello
- Asana
- Basecamp
- Smartsheet
- Monday.com
- Google Workspace
- Microsoft Office Suite
Blockchain technology for robust data security
Cybersecurity Ventures expects the annual cost of cybercrime worldwide to reach $9.5 trillion in 2024. The company warned in its report that cybercriminals consider small businesses easy targets. It identified ransomware as the most immediate threat.
BPO companies use blockchain technology in their digital transformation efforts to protect small and medium-sized enterprises from such detrimental impacts. Blockchain utilizes cryptographic algorithms to secure virtual transactions, preventing unauthorized parties from altering sensitive data.
Providers also employ blockchain for outsourced supply chain management to gain end-to-end visibility and traceability of goods and processes. The tool helps detect counterfeit products and mitigates the risk of logistics fraud.
AR and VR for improved sales and marketing
Augmented reality (AR) and virtual reality (VR) help sales and marketing BPO providers deliver immersive product demonstrations to potential customers. Through digital showrooms and mobile apps, they showcase their clients’ products in a compelling and immersive manner.
AR and VR platforms also let online shoppers customize product features based on their preferences, personalizing the experience. Customers can interact with the virtual models by changing their colors, sizes, and specifications.
For instance, Dulux Paint leverages AR to show actual paint colors virtually. The company’s Visualizer App lets online buyers see how over 1,200 paint colors would look on their walls.
How BPO firms address adverse digital transformation impacts
BPO companies might overlook issues during digital transformation, impacting its execution and preventing them from experiencing its many advantages. These issues might include skill gaps, cyber threats, and ethical considerations.
Service providers constantly explore ways to address such challenges. They perform the listed best practices to transform their operations with digital tools:
- Conduct comprehensive risk assessments to identify and resolve potential issues.
- Closely work with tech partners to accelerate digital transformation initiatives.
- Upskill and reskill staff to adapt to continuously advancing technologies.
- Implement effective change management to foster emerging tech adoption.
- Communicate to employees the rationale behind digital transformation efforts.
- Educate clients about digital transformation benefits and drawbacks during a contract.
- Adopt agile and flexible service delivery models.
- Prioritize data security and compliance while implementing digital transformation efforts.
- Take a client-centric approach to digital transformation.
- Regularly monitor and evaluate the effectiveness of digital transformation projects.
The bottom line
BPO companies experience significant boosts in productivity and cost savings due to digital transformation. Technologies from AI to AR and VR positively impact operational efficiency, team coordination, and service quality.
However, adopting tech advancements poses challenges; if companies are unprepared, they might do more harm than good. Service providers can prevent issues by implementing the best practices discussed. These methods help them ensure smooth operations while delivering value to clients.
Do you want to experience working with a digitally transformed BPO vendor? Let’s connect and explore possible options to upgrade your daily office processes.
