The Year of the Wood Dragon 2024 is the year of opportunities and evolution. In the Business Process Outsourcing (BPO) industry, this theme means technological advancements and shifting dynamics. Below we explore the four key trends poised to reshape the outsourcing landscape this year.
Hyper-Automation Revolutionizing BPO Operations
Hyper-automation involves integrating advanced technologies like artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) to optimize business processes. It’s automation but a step ahead. This approach allows BPO companies to increase operational efficiency and enhance customer service while reducing or eliminating legacy process costs. Investments in hyper-automation are reportedly set to increase in 2024, making it a strategic technology trend to watch out for.
Small/Mid-Sized Companies Redefining CX and EX Expectations
By centering on a people-centric approach, smaller and mid-sized companies set new benchmarks for Customer Experience (CX) and Employee Experience (EX) excellence. They personalize the customer journey using data analytics, sentiment analysis, and AI. Investments in their employees are equally prioritized. Training and development programs are available to equip the workforce with the resources to become assets in delivering seamless and unified customer experience.
Frontier Cities Emerging as New BPO Destinations
Challengers have emerged in the BPO industry. Frontier cities rank well against traditional outsourcing destinations by offering fresh perspectives on talent, cost-effectiveness, and business-friendly environments. Cities like Cagayan de Oro (Philippines), Cyberjaya (Malaysia), and Katowice (Poland), for instance, are gaining traction due to well-established technological infrastructure, skilled workforces, and favorable business climate. These cities provide excellent options for companies seeking alternative global outsourcing solutions.
New Industries Outsourcing for Operational Efficiency
The benefits of outsourcing are extending to new industries. In the healthcare sector, the turn to outsourcing is a response to the need for a resource-saving strategy for providers grappling with understaffed teams and ongoing software and equipment maintenance. The shift’s impact is centered on administrative efficiency. Functions like billing, coding, and claims processing witness streamlined processes, translating to improved overall performance. According to a Black Book Market Research survey, hospital outsourcing, valued at around USD 304 billion in 2022, may reach USD 650 billion by 2027.
True to the theme of the dragon year, outsourcing providers must embrace innovation and adapt to emerging trends to stay ahead in the competitive BPO landscape. After all, these trends are here to stay and evolve.
Contact OP360 to experience how we’re harnessing these trends to deliver a better way to outsource.
