The last year saw the business process outsourcing (BPO) industry get hit hard by the global pandemic’s economic effects.
As the world continues to find its footing in this “new normal,” businesses are re-strategizing their outsourcing arrangements in the New Year.
In the second quarter of 2020, the BPO industry experienced a double-digit decline, with global spending decreasing by 16%.
According to a poll by Deloitte in April 2020, businesses predicted that the end of the pandemic would reduce outsourcing. Instead, it resulted in a rapid transformation of the conventional BPO model so it would be more focused on speed and flexibility.
Here’s what the future may hold next for the BPO industry:
Working From Home Is The New Normal:
According to a survey, 80% of companies providing BPO services had less than 10% of their employees working from home.
More than 52% of them shifted to a work-from-home model during the pandemic, yet most BPO companies are still hesitant to consider it a long-term solution.
Research shows that working from home is beneficial for both the employees and the company. But we already knew this before the pandemic came around.
A 2013 experiment found that working from home enhanced employee performance, work satisfaction and lowered employee turnover.
Recent studies also show that people prefer working at home, and some employees prefer the hybrid environment over the office. Therefore, it is crucial to invest in remote work culture to allow employees and companies to thrive.
Business Continuity And Disaster Recovery:
In the past, business continuity planning (BCP) was not seen as a requirement. Instead, businesses would create multiple physical backup locations to move to in the event of an accident.
However, this assumption is only valid if workers and systems are easily transferable to another location. This is relevant to BPO companies since they are dependent on remote employees.
While having multiple locations is an essential factor in BCP and disaster recovery, it won’t help in the case of a global lockdown, such as the one we saw during COVID-19.
Therefore, companies need to include mechanisms to deal with remote working when planning business continuity.
Focus On Data Compliance:
According to Deloitte, when outsourcing service employees started to work from home, businesses had to make quick decisions about important topics like data privacy and service obligations.
They may not have realized the full impact of their decisions then, but now, if BPOs use a remote work model, they will be answerable to strict data security requirements.
Their solutions must be compatible across different systems and devices, flexible enough for different workflows, provide accountability for non-compliant objects and people when working remotely, and create a balance between customer and agent data security.
Remote monitoring can help ensure that sensitive data stays secure no matter who accesses it.
Moreover, BPOs must demonstrate that their technological solution has the necessary performance, infrastructure, and endpoint security to allow for a safe and functional work-from-home experience.
3Alpha LLC provides expert outsourcing services to companies. We take care of all your bookkeeping, ecommerce data entry services, accounting, database management services, and more. If you want a way to improve your business process, we can help. Get in touch to find out how.