BPO in the Cloud Computing Industry: Infrastructure as a Service (IaaS)

Cloud computing has revolutionized corporate activities, enabling widespread digital transformation. Thanks to companies in the infrastructure as a service (IaaS) sector, businesses of all types and sizes can lessen hardware expenses by accessing servers, storage, and networks online and on-demand.

However, what if these cloud enterprises struggle to balance their primary and non-primary resources and functions? 

Business process outsourcing (BPO) is the key. They adopt this practice to gain scalable human and technological resources at competitive prices.

This article explores how BPO helps cloud computing (IaaS) firms maintain streamlined workloads and cost-effective service offerings to meet high demand.

How BPO Supports Cloud Computing (IaaS) Businesses

The IaaS market reached $130.08 billion in revenue in 2023. According to Fortune Business Insights, the sector will expand at a compound annual growth rate (CAGR) of over 22% to reach $531.84 billion by 2030. 

The need to reduce physical equipment costs and support remote work drives the sector’s continuous growth. The increasing demand for high-speed data access and cost-effective information technology (IT) infrastructures also contributes to its expansion. 

Despite this uptrend, cloud service businesses experience challenges optimizing their non-core tasks. Employee recruitment and retention expenses, system maintenance costs, and increased backlogs also add to the burden. 

Fortunately, third-party service providers offer affordable access to expertise and technology. They use these scalable resources to ensure smooth front- and back-office operations. The discussion below shows what BPO’s actual role in the cloud computing (IaaS) industry is. 

Simplify Software Development and Testing

BPO firms employ skilled software developers and testers to support cloud computing (IaaS) providers. These professionals possess the skills and certifications to build resources for this cloud service model. They also know how to apply programming languages and frameworks effectively to this function.

Contractors use different tools to simplify IaaS software development and testing further. Here are the common technologies they deploy:

• Integrated development environments (IDEs) include code editors, compilers, and debuggers tied into a single application. Eclipse and Microsoft’s Visual Studio are some examples.
• Version control systems such as GitHub and Bitbucket help manage changes to source code over time. These tools maintain version history and facilitate code modifications, letting multiple developers work on a project remotely.
• Continuous integration and continuous deployment (CI/CD) tools (e.g., Jenkins) automatically add code changes to a shared repository and launch apps in production environments. They help maintain code quality and detect issues early.
• Test automation systems rapidly run trials and enable quicker feedback cycles during IaaS software development. This technology includes open-source systems such as Selenium and Appium.
• Performance-testing applications assess software responsiveness, speed, and performance under various conditions. Apache JMeter and LoadRunner simulate real-world scenarios to evaluate an IaaS platform’s ability to handle user loads. 
• Security testing platforms help determine potential IaaS vulnerabilities. Tools such as OWASP Zed Attack Proxy (ZAP) and Burp Suite imitate various attack situations to identify potential security risks. 
• Collaboration apps facilitate smooth communication between in-house and third-party development teams. Slack, Jira, and Trello have messaging and document-sharing features to ensure seamless project management and data exchange.
• Virtualization and containerization systems create and handle isolated environments for running apps. Docker and Kubernetes generate virtual machines and use lightweight containers to package and deploy IaaS platforms.
• Monitoring and logging tools track and analyze software behavior during the development and testing phases. These include ELK Stack and Prometheus, which generate logs and provide insights into potential errors to enable proactive solutions.
• Test management systems (e.g., TestRail and Zephyr) help teams plan and organize software testing. They allow for systematic test case management, execution, and reporting.

Boost Customer Service

Recent data shows that 70% of consumers spend more with companies that provide a seamless experience across all channels. BPO firms deploy skilled agents and robust solutions to help cloud computing (IaaS) companies deliver faster and more effective customer service. 

Third-party providers meet such demands by using omnichannel platforms. These cloud-based contact center apps consolidate customer interactions across multiple channels, such as phone, email, chat, social media, and self-service portals. 

This unified experience lets clients switch between channels without losing context or essential data. Moreover, the omnichannel system enables real-time communication. It allows agents to answer IaaS-related inquiries quickly and effectively.

Accelerate IaaS Billing and Payment Collection

Billing and payment collection are crucial but tedious tasks for IaaS companies. Fortunately, BPO organizations can scale their resources to deal with this financial process. They let IaaS providers focus on their core functions by implementing the following strategies:

• Generate and distribute timely invoices. Service vendors use artificial intelligence (AI) and robotic process automation (RPA) to produce and send digital invoices on time based on a client’s usage, subscription plan, and billing cycle.
• Integrate payment gateways into the billing systems of IaaS businesses. The approach facilitates seamless and secure online payments. It lets clients settle payments via credit cards, bank transfers, or electronic wallets.
• Manage a subscription-based service model. This process involves handling the setup, modification, and cancellation of user subscriptions. BPO providers also help cloud computing (IaaS) companies provide accurate bills that match the services consumed.
• Implement late payment management strategies. These techniques include sending automated reminders and charging late fees. They ensure IaaS providers maintain cash flows and reduce instances of overdue payments.
• Develop and execute customized billing solutions. These systems match the specific needs and complexities of IaaS pricing models. They may include tiered or usage-based billing structures.
• Conduct financial reporting and analysis. BPO companies give IaaS businesses insights into revenue streams, client transactions, and trends. The data informs decisions and efforts to optimize billing and payment processes.

Secure IaaS Data Entry and Management

A recent IBM report revealed that 82% of data breaches involved cloud platforms. These incidents led businesses worldwide to spend an average of $4.45 million on data breaches in 2023. BPO firms help IaaS providers avoid significant expenses through the following practices:

• Use encryption tools to safeguard data during transmission and storage. Robust encryption algorithms prevent unauthorized access within IaaS platforms when performing these processes.
• Implement strict access controls. This approach ensures that only authorized personnel can modify IaaS platforms. BPO companies designate specific permissions based on job responsibilities to avoid confidential data leaks.
• Enforce multi-factor authentication when using IaaS platforms. This additional layer of security requires users to provide multiple forms of identification, such as passwords and biometrics. It reduces the risk of stolen identities and unlicensed access.
• Perform regular IaaS audits and monitoring activities. These include reviewing access logs and identifying suspicious activities to promptly address security threats.
• Apply data masking and anonymization techniques. Service providers replace or encrypt specific data elements to prevent the exposure of personally identifiable information (PII) during data entry and processing.
• Execute secure data transmission protocols. BPO companies apply these rules to enable communication between users and IaaS systems. This method prevents data interception and man-in-the-middle (MITM) attacks during transit.
• Hold regular security training programs for BPO teams and client staff. These sessions emphasize the importance of data security awareness, especially when worker mistakes cause 88% of breaches.
• Adhere to data residency requirements and legal industry standards. Providers help process the necessary IaaS data storage and management certifications per a country’s applicable laws, such as the General Data Protection Regulation (GDPR).
• Draft and execute incident response plans. These strategies include procedures for reporting incidents, mitigating threats, and implementing corrective measures. Contingency techniques ensure quick recovery during unexpected security incidents.
• Install regular software updates. BPO companies keep IaaS solutions up-to-date with the latest security patches. This strategy addresses vulnerabilities and protects the platforms against potential cyberattacks.

Risks to Consider When Outsourcing

BPO brings numerous benefits to cloud computing (IaaS) companies. However, the practice also introduces several challenges that require careful consideration and planning. Here are the common BPO risks and drawbacks that IaaS businesses should note:

• Security challenges. Outsourcing involves sharing confidential information with remote workers. Online transactions may risk compromising data if IaaS companies let their guard down. Implementing robust security strategies and defining clear requirements in service agreements are crucial.
• Data privacy and compliance issues. Working with BPO companies overseas may pose data privacy challenges. Conduct thorough due diligence to ensure the provider complies with data privacy regulations and industry-specific compliance standards. Ensure it knows international and local laws to avoid costly penalties and lawsuits.
• Service reliability and downtime. Entrusting tasks to remote service providers may include unexpected downtime. Thus, IaaS companies must assess the vendor’s reliability and transaction history. Confirm that the BPO company has a robust infrastructure and disaster recovery plan to minimize service interruptions.
• Communication and coordination concerns. Partnering with a provider from a different region introduces cultural and language differences. This diversity may lead to misunderstandings. So, effective communication channels and rules must be established to overcome these barriers. 
• Financial risks. Budgetary concerns arise if the BPO deal leads to unexpected costs, such as additional fees for services not initially anticipated. Select a service vendor with transparent pricing models. Most importantly, understand all cost components, potential additional fees, and any conditions that might cause cost overruns.

The Bottom Line

The absence of physical equipment does not mean IaaS providers have it easy. They also encounter challenges when handling their front- and back-office functions. BPO can streamline non-core cloud computing (IaaS) tasks. 

Providers perform the above strategies to enhance daily productivity while reducing expenses. However, IaaS companies should still implement the recommended steps to ensure smooth operations and returns on their outsourcing investment. 

Let’s connect if you need customer service or secure data management support. We have flexible human and tech resources to help meet your IaaS company’s efficiency requirements.