What Are the Common BPO Industry Challenges Expected in 2024? 24 Apr 2024

BPO Industry Challenges

The Top 10 Challenges of the BPO Industry:

  • Shifting Political Landscapes
  • Brand value
  • Beyond Client Expectations
  • Channels of Communication
  • Budget crunch
  • Regular interruptions
  • Employee attrition
  • Customer Attrition
  • Health Concerns
  • Lack of Talent

Business process outsourcing (BPO) has been a common technique among enterprises throughout the world seeking to save costs and increase efficiency. Companies can focus on their core capabilities by outsourcing corporate functions such as human resources, accounting, and customer support to specialized third-party providers. However, the BPO industry will confront significant obstacles in 2024. One key difficulty is maintaining quality and compliance requirements across global delivery methods.

As companies become increasingly global, BPO service providers must ensure seamless integration and standardized best practices. Another big concern is data security, because offshore workers typically handle sensitive client information. Furthermore, BPO firms struggle to attract and retain top talent for lower-paying outsourced positions. With effective risk management and governance measures, the BPO business can continue to enable corporate agility and innovation through process outsourcing. However, tackling these common BPO sector difficulties is critical for providers’ success.

Shifting Political Landscapes

Business process outsourcing providers that use a global delivery model in several countries incur significant risks and uncertainty when political landscapes evolve. Changes in trade policies, data privacy legislation, tax codes, and other laws can all cause major disruptions in outsourcing operations. BPOs must constantly watch the regulatory climate in all jurisdictions where they operate and be ready to quickly adjust their rules, procedures, and service delivery strategies to ensure compliance.

Brand Value

BPO organizations must prioritize maintaining a great brand reputation and maintaining trust. Any perceived or actual quality concerns, security breaches, fraudulent operations, or unethical behaviors can have long-term consequences for a company’s brand value and public image. BPOs must have stringent quality control standards, security protocols, codes of conduct, and transparency practices to safeguard their reputation.

Beyond Client Expectations

Exceeding client expectations through exceptional customer service, high-value products, and prompt responses is a constant challenge for BPO companies with stringent service level agreements. BPOs must invest in the necessary tools, training, people, and performance management strategies to satisfy key performance indicators and exceed customer satisfaction targets.

Channels of Communication

Successful BPO engagements require reliable, effective communication channels between customers and offshore delivery teams. However, considerable coordination issues, technological gaps, language obstacles, time zone disparities, and frequent pauses are common. BPOs must examine these difficulties and apply remedies to ensure seamless communication.

Budget Crunch

BPO providers are pressured to execute processes effectively, generate business value, and work within strict client budgets and pricing limits. To succeed in a highly competitive market, BPOs must constantly innovate and identify ways to increase production, enhance speed and accuracy, harness automation, and reduce waste.

Regular Interruptions

Regular interruptions to typical work cycles, such as changing priorities, unexpected queries, meetings, equipment issues, and workplace disruptions, can have a significant impact on productivity. BPOs must assess the various interruption concerns and apply mitigation techniques to reduce the impact.

Employee attrition

Employee turnover causes BPO firms to incur significant recruitment, hiring, onboarding, and training expenditures. To prevent turnover, BPOs must provide competitive salaries, foster a healthy work culture, create development opportunities, and employ retention tactics.

Customer Attrition

Losing clients due to poor service quality, breaches, pricing issues, or failure to fulfil expectations reduces revenue streams for Custom BPO service providers. Conducting satisfaction surveys, addressing problems, managing relationships, and establishing “stickiness” through value is critical for BPOs to increase retention.

Health Issues

Repetitive jobs, demanding workloads, night shift patterns, and poor workplace conditions can all contribute to occupational health problems such as repetitive strain injuries and psychological distress. BPOs must create ergonomic work environments, assess risks, offer wellness programs, and promote healthy lives.

Lack of Talent

Recruiting and maintaining skilled individuals with the correct combination of language competence, technical abilities, cultural fit, and soft skills across global delivery sites is an ongoing talent problem. To meet skill demand, BPO organizations must improve their hiring methods and talent development pipelines.

Contact Velan Today for Any BPO Requirements

The business process outsourcing industry has significant hurdles, including changing rules, keeping people, and controlling health concerns. While these concerns create complexity for BPO providers, they highlight the necessity of selecting the proper BPO partner to handle complexity. Look for vast experience, strict governance, innovation, and customization. The ideal partner will have substantial subject knowledge, strict processes, advanced communication technologies, and a strong desire to understand and meet your objectives and needs.

When outsourcing important business procedures, find a partner who will feel like a member of your team. Velan has over 17 years of experience delivering efficiency and value through integrated BPO services that leverage best-in-class automation and analytics. Contact Velan’s specialists today to see how we can assist you in managing your entire process while you focus on your primary goals. Partnering with Velan means obtaining a trusted advisor who is ready to solve today’s and tomorrow’s BPO difficulties.


Jack Manu

Outsourcing Consultant

About the Author:

Jack Manu, an outsourcing consultant at Velan, has more than a decade of experience in assisting real estate companies and real estate agents to improve the operational efficiency. He has been helping real estate agents including many REMAX agents to focus on their core business by offering transaction & listing coordinator services, accounting service and social media marketing assistance.Jack can be reached at jack.manu@velaninfo.com


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