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Business process outsourcing (BPO) heavily depends on information technology (IT). Therefore, BPO companies constantly evolve to deploy the latest technology to empower and grow their services.
The BPO industry has been providing clients with effective ways to reduce costs, but recent IT trends will likely change the industry landscape. A perfect storm is coming with automation on the rise. Clients will seek more cost savings while vendors develop additional services to adjust.
This article discusses the role of information technology in catalyzing change in the BPO industry. It also explores the tools that will transform BPO services.
The Role of Information Technology in BPO
So what is BPO? This strategy involves contracting out certain business processes, such as human resources, application development, and customer service, to a third party. BPO companies use cloud computing, social media, business analytics software, process automation, and other technologies to enable efficiency and lower operating costs.
The BPO firms that benefit clients the most use technology as a value-add instead of a delivery infrastructure. Many outsourcing clients find the technology their partners provide crucial to the BPO relationship.
Effective technology enables efficiency in outsourced services by minimizing the number of systems used, streamlining the system environment, and standardizing the technology environment on a unified, centralized platform.
Technology continuously changes how businesses operate, and BPO is no exception. The outsourcing sector has witnessed several significant transformations thanks to technological developments. Below is a deep dive into the role of information technology in BPO.
Enabling Automation
Artificial intelligence (AI) and robotic process automation (RPA) allow BPO companies to automate routine tasks, freeing up staff for more complex work. About 70% to 80% of all rule-based business processes can be automated with RPA and AI.
This capability leads to higher efficiency and lower costs for BPO firms, resulting in more affordable pricing plans for clients. For instance, technical support chatbots can answer simple questions and only pass complex issues to human agents.
Offering More Services
Information technology allows BPO service providers to offer more solutions. One example is cloud computing, which enables software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS) platforms. Outsourcing firms thus offer various solutions to clients, from marketing to data security, data management, and IT support.
BPO in the IT industry uses a third-party provider to deliver IT-intensive business functions, infrastructure solutions, and application services.
Allowing Better Personalization
Technology also empowers BPO firms to deliver more personalized solutions. Big data analytics collects and analyzes large amounts of consumer data. It allows BPO vendors to personalize service for end customers based on their behavior and preferences.
For instance, a BPO firm working with an e-commerce company can utilize customer data to offer personalized product recommendations.
Ensuring Security
Security is a top priority for BPO companies, especially with the rise of cyber threats. The damage cost of cybercrimes in 2025 is estimated to be ten times larger than today. Nearly 40% of all cyberattacks in the United States cost over $25,000.
Information technology has allowed BPO firms to provide more secure services. Access controls, firewalls, and encryption help protect confidential data and prevent security breaches. Moreover, outsourcing firms can now provide risk management and cybersecurity solutions.
Improving Flexibility
Technology also allows BPO vendors to improve flexibility in their services, with cloud-based solutions being one example.
With the rise of remote work, cloud-based platforms allow outsourcing teams to offer services from anywhere in the world. The cloud and collaboration tools also allow BPO employees to work from home, extending flexibility for the staff and the outsourcing client.
Enhancing Precision
BPO providers try to avoid making mistakes as much as possible, even if human error is inevitable. So they look for precise systems that allow for error-free production. Information technology can help BPO companies do exactly that.
BPO clients are also after precise tools for the same reason. Automation tools help reduce workers’ errors by eliminating manual data entry, standardizing processes, and simplifying complicated workflows.
Adding Greater Value
Recent developments predict that information technology will have a larger role in BPO. More service providers plan to go beyond human labor by incorporating value-added services through technology. With more technology-based services, clients get more bang for their buck, while BPO companies can rely less on human resources.
Offshore service providers have heavily relied on selling affordable labor. This move from BPO companies, known as “non-linear growth models,” is a rising trend to move past legacy services.
Transforming Processes
Information technology also allows process transformation. Client companies outsource non-core processes to BPO providers to reduce costs, but many want more.
Data and the technologies that allow organizations to leverage their data are significant trends in business today. BPO firms can help their clients utilize big data. Client companies can use the provider’s tools, analytics, insights, and industry expertise to tap into information that can help them operate more efficiently and drive better business outcomes.
Driving Innovation
Technological innovation makes work transparent, easy, and productive. The goal is to have increased production while keeping costs low. BPO firms and clients can make this possible with the help of technology.
Information technology is advancing rapidly and will continually change the world of business. The developing technology is an opportunity for BPO firms to lead and adapt. The future of the BPO industry relies upon its flexibility and willingness to adapt to technological drivers and new growth.
Technology That Will Transform BPO Processes
Advanced technology, such as AI, data analysis, cloud communications, and unified communications, can uplift outsourced services. BPO organizations know this. So they are enhancing services to combine modern technologies for better outcomes.
Below are tech advancements that will transform BPO processes:
- Artificial intelligence. AI and machine learning (ML) are some of the top technology trends for BPO. BPO providers can use AI to automatically go through accounting spreadsheets for financial services clients. They can also use voice recognition and chatbots to accurately and efficiently complete customer service requests.
- Unified communication. Unified communications as a service (UCaaS) aggregates all business channels into one central platform. UCaaS allows companies to communicate, collaborate, and get insights quickly.
- Big data analytics. Data analytics helps generate accurate and fruitful insights from a business’s financial information, sales data, surveys, and market research. Accurately analyzed and logically supported data significantly reduces the chances of making improper decisions.
- Cloud-based platforms. Cloud-based solutions paired with AI changed legacy call center-based BPO to cloud BPO, leading to better customer service. With the cloud, BPO firms need not establish costly data storage centers. Cloud storage ensures a higher level of security for storing data.
The Bottom Line
Developments in information technology have had a massive impact on the BPO industry, allowing automation, driving innovation, expanding services, improving personalization, and increasing precision. As technology advances, one can expect that the outsourcing sector will continue to adapt, providing new and innovative solutions to businesses worldwide.
Unity Communications is your best bet if you want to be part of technological development, optimize your work, and provide high-quality customer service. We provide innovative, customized BPO solutions to clients of all sizes. Take your first step, and let’s connect!
