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The latest technology trends help shape the business process outsourcing (BPO) landscape. Innovations have supported the outsourcing sector in overcoming the challenges of the pandemic and the worldwide business slowdown. They will continue to enable the industry to survive and thrive against future obstacles.
This article discusses how emerging technologies are changing the BPO industry. Specifically, it focuses on artificial intelligence (AI), blockchain, big data analytics, experience communication as a service (XcaaS), and the Internet of Things (IoT).
Read on to learn more.
How Is AI Technology Changing the BPO Industry?
AI technology is changing the BPO industry by taking the customer experience to new heights, reducing operating expenses, accelerating efficiency and output, and offering more scalable processes.
Employees in BPO companies are generally engaged in lengthy and laborious tasks, including data entry, database management, inventory handling, and administration. AI provides process automation to simplify repetitive and manual duties, allowing workers to concentrate on more urgent matters. It mimics human intellect to perform time-consuming operations.
Here are a few ways AI technology is revolutionizing the industry:
- Taking customer experience to new heights. AI adds smarter virtual assistants and chatbots to customer service activities. These advanced programs can resolve common inquiries and concerns during live conversations. They support human agents in delivering higher-quality consumer service and experiences.
- Reducing operating expenses. Integrating AI into the workflow is a possible cost-saving measure for BPO providers. The technology streamlines daily, routine, and time-consuming operations, reducing the need for more human employees. Decreased operating costs translate to more competitive service rates for clients.
- Accelerating efficiency and output. AI-powered solutions enhance the precision and agility of outsourced services. Aside from automating daily operations, they can identify sequences in information and records to form recommendations. They assist organizations in making data-based choices to improve performance and productivity.
- Offering more scalable processes. AI helps third-party vendors adjust outsourced activities quickly based on the client’s business situations, goals, and needs. Service providers use this next-generation system to be more agile in their operations, speedily increasing or decreasing load, team size, or demand without disrupting current activities.
How Is Blockchain Technology Changing the BPO Industry?
Blockchain technology is changing the BPO industry by guaranteeing more security and transparency, leveraging automation for faster service, and sharing and tracking data more quickly.
What is this BPO technology all about? Blockchain is a powerful database platform that allows for the open exchange of data or information within a company’s information technology (IT) infrastructure. It assists service providers in shifting to the new digital revolution by expanding their service and employment options for the BPO market.
Incorporating blockchain into their systems enables BPO providers to interact and share data more effectively, transparently, and securely within enterprises. This sophisticated database builds permanent records and files for tracking operations, purchases, sales, accounts, and similar transactions.
Here is how blockchain transforms BPO processes:
- Guaranteeing more security and transparency. Blockchain utilizes a centralized ledger to keep information and interactions consistent, up-to-date, and secure across various endpoints. Only authorized personnel can use these resources. Data is time- and date-tagged, preventing manipulation.
- Leveraging automation for faster service. This database technology capitalizes on “smart contracts” that lessen human involvement while maintaining accuracy and accelerating procedures. For instance, after filing an insurance claim, the technology automatically triggers payment because of smart contracts.
- Sharing and tracking data more quickly. Blockchain enables service providers to instantly exchange secure data with customers. It also features an audit trail that captures data and its sources at each stage. Monitoring data at each step allows a company to identify flaws or vulnerabilities in its supply network and processes.
How Is Big Data Analytics Technology Changing the BPO Industry?
Big data analytics technology is changing the BPO industry by unlocking hidden data and supplying real-time information.
Big data analytics is among the technological innovations BPO providers use to extract, examine, and organize large volumes of information. These sophisticated tools help service providers determine operational weaknesses and opportunities. They assist third-party vendors in designing procedures to quantify and enhance output and efficiency.
What is the IT BPO and general outsourcing industry’s interest in this technology? Big data analytics helps service providers identify trends and changes in outsourced operations, such as customer service and technical support activities. It uses various methods to transform unstructured data into meaningful insights for better decisions.
The high importance of data in achieving success prompts more businesses to invest in big data, cloud computing, mobile, and social media platforms. In particular, the global BPO business analytics market is likely to hit $64.9 billion by 2030. This segment will exhibit a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030.
Data analytics reshapes BPO in the following ways:
- Unlocking hidden data. Big data analytics enables service providers to dig deeper into outsourced processes to uncover more useful information. Discovering more relevant data can lead to better insights that enhance productivity and efficiency.
- Supplying real-time information. BPO providers using big data analytics can provide detailed information regarding the performance of an outsourced process in real time. As a result, using highly trustworthy data makes decision-making more effective.
How Is XCaaS Technology Changing the BPO Industry?
XCaaS technology is changing the BPO industry by lowering technical work, analyzing customer relations better, providing smoother team collaboration, and improving marketing strategies.
XCaaS is a cloud-driven communication technology that blends unified communications as a service (UCaaS) and contact center as a service (CCaaS) platforms. It takes customer support efficiency and experience to new horizons.
Providing all the communication tools needed to consistently deliver an excellent customer experience is one way this technology changes the BPO industry. It combines UCaaS and CCaaS systems to support every business aspect, including call center systems, data analytics, and customer relationship management, to help service providers gain a competitive advantage.
XCaaS technology revolutionizes the BPO industry by:
- Lowering technical work. XCaaS provides a single-pane monitoring and analysis solution even when running processes in numerous applications. This capability simplifies the work of IT professionals.
- Analyzing customer relations better. The system employs data analytics, AI, and machine learning (ML) to acquire immediate insight into customer interactions and a comprehensive perspective of their experiences. It also uses natural language processing (NLP) to interpret human words more accurately.
- Providing smoother team collaboration. XCaaS generates a single list of contact information for the entire organization. Hence, customer support agents and workers can verify their real-time availability at any contact point and benefit from seamless voice, chat, and video transfers.
- Improving marketing strategies. Integrating customer-agent interactions and using data from these encounters allows contact center management to obtain beneficial insights for improving product or service marketing.
How Is IoT Technology Changing the BPO Industry?
IoT is changing the BPO industry by delivering a greater customer experience, providing vital insights, decreasing operating expenses, and boosting productivity.
IoT is a network of devices that allow interaction with each other and the cloud platform. This technology gathers and analyzes cost reduction and efficiency improvement data, including sensors, digital machines, computer systems, and appliances.
Here are a few ways IoT technology is shaking up the BPO industry:
- Delivering greater customer experience. IoT-driven equipment helps companies track, assess, and extract customer data faster. Business analysts and customer service leaders can more precisely anticipate consumer behavior trends. So third-party teams can offer better customer experience based on real-time data.
- Providing more vital insights. IoT technology can change the BPO industry by gathering more internal and external data to gain deeper insights. IoT systems can offer additional value to organizations as more actionable information is accessible from IoT-enabled machines and devices.
- Decreasing operating expenses. IoT-powered tools help organizations optimize workflow and minimize ongoing costs by immediately providing accurate and updated information. These devices can send notifications regarding work progress and suggest actions to efficiently manage processes.
- Boosting productivity. IoT networks can manage, monitor, and alert third-party agents about operations or performance. They help BPO professionals make better decisions relating to duties and procedures.
The Bottom Line
So what will the BPO sector look like in the future? Expect more automation, connectivity, speed, and flexibility to address the increasing and changing market demands.
Understanding technology’s influence on the BPO industry is vital when considering outsourcing operations. Learning about its impact, benefits, and contributions can assist decision-makers in developing more effective strategies and adopting best practices.
Despite potential challenges in the future, the BPO industry will continue to flourish thanks to technological progress and developments.
Let’s connect to learn more about how the latest technologies are changing the BPO industry!