BPOs are said to be a great platform to choose top outsourced talent, especially when you have a reputed partner. Taking services from a known outsourcing firm, there are many perks businesses get to enjoy. However, outsourcing is cost effective and brings a plethora of benefits for clients but do BPOs get the expected outcome in return of giving such assistance? Business Process Outsourcing entities are expected to give enhanced solutions, but are they paid the same way as expectations are boosted? This is the main reason these outsourcing companies’ growth is being affected. Numerous factors are making it hard for BPOs to stay back in the market and here we have the aspects that are challenging these entities.
Every new article that we read talks about how business cost is reduced by taking outsourced services. The BPO industry is always called a money-saving business that helps access top talent at minimized cost. However, with time, the industry has evolved to be a revenue generator for firms, but its own cost of doing business remains the main concern. Outsourcing companies face an issue of cost shortage, as their clients take them as their money-saving agent and as a service provider that they can mold on expenses. BPOs are anticipated to give enhanced results within limited budget and due to high competition in the market, when charges are raised, competitors come up with low prices which eventually compels businesses to keep lower rates again to stand in competition. This hampers business growth and puts pressure on resources. Customer expectation is increasing with the change in technology but this change has not shifted to hike in business rates making it the biggest challenge for BPOs.
Quality of service
BPO firms are expected to provide effective results to clients and with the introduction of numerous social media platforms, it is more essential for companies to make their clients aware of their best practices. Transparency has increased with social media platforms, and now it is easy to access the outsourcing companies’ up-to-date information, which compels businesses to be relevant to gain customers’ trust. To give quality services, BPOs have to compete with established companies and for this expenses matter, where these firms fail.
This is a primary challenge faced by all reputed BPO companies. Even major enterprises face this issue and with time, it has not reduced but has grown in numbers! This highlights that employees are not so satisfied to stay back in BPOs and that companies need to find a way out for it. BPOs train their employees for call center/client handling services and after becoming proficient, professionals flee to other companies for a hike or other varied reasons. This disrupts the effective task performance as the unavailability of experts hinders business development functions. Due to employee attrition, companies have to hire new staff and look after their training, which is a time taking process that also demands huge expenses. Therefore, it is advised to BPOs to have a friendly environment for their staff, so that they have a reason to stay back and are influenced to work happily for the entity.
All these factors not only affect the efficient functioning of BPOs but also come as a challenge. Moreover, business regulatory environment, customer health, brand building, and equity, apart from the ones discussed above are some other add-ons that disturb BPOs effective task performance. There has to be a working strategy with employees’, a positive environment at the office along with effective techniques to solve the staffs’ problem to avoid such challenges to some extent.