Did you know the growth rate of the global BPO market? Its CAGR is 9.4% from 2022 to 2030. A report by Grand View Research revealed that the Indian BPO market is likely to rapidly grow at a CAGR of 12.7% from 2024 to 2030.
Certainly, advanced technologies are storming in, and this industry is the hub of innovative technologies for automation. Global companies invest in outsourcing because of the money factor as well. They find it a cost-effective option, which helps them adapt to changing business dynamics and customer expectations consistently. What keeps them going and being in demand—have you ever done that?
It is its ability to evolve and adapt to digital trends. It is likely to be more valuable when organisations require customised and scalable services from these BPO service providers.
Future Digital Trends for BPO Services
BPO service providers are dominating because of digital solutions. What trends will keep them going on and on? Let’s find out.
- AI Evolution and Continuous Automation
Artificial intelligence (AI) is a big game changer. It is able to automate data entry, cleansing, migration, or data mining. These are some crucial processes that lead to decisions or strategies. The integration of AI can minimise efforts to discover business intelligence through data collected from chat bots, reviews, or applications. The integration of AI eases the handling of repetitive and lengthy tasks. This integration will release the burden of handling data meticulously. All data-based tasks will be automated. And in-house teams would be able to spend more time on complex tasks and strategy-making.
A study by McKinsey & Company found that up to 30% of human-based BPO tasks could be replaced by automation by 2030. The way this trend increases and minimises operational costs, the chances of its widespread use are more prominent.
Let’s consider an example of a renowned automation technology called robotic process automation (RPA). Companies are lessening the effort of tasks such as data entry, invoice processing, and customer service interactions via automation. Gartner has found that the RPA software market is likely to reach USD 2.9 billion by 2024.
In essence, it is obvious that an increasing number of BPO providers are going to invest in next-level technologies like RPA. And of course, automation is likely to be in every domain, which AI can do with accuracy and consistency. So obviously, AI evolution is going to rule for being accurate and consistent in data deliveries.
- Aggressively Depending on Analytics for Decisions
BPOs are providing data analytics services, and this service is going to be more in demand in the coming years. For sure, the trend towards data-driven decisions is going to be overwhelming, which will increase the need for a vast amount of data to be collected for in-depth analysis and actionable decisions. Overall, BPO companies emphasise analytics-driven solutions that continue the trend of making informed decisions like how to optimise backend processes and how to win customers’ trust, or more.
Data analytics is primarily required to analyse the target market, customers, their intent, and their behaviour. Overall, research helps in discovering the scope for business opportunities. Its trend is surging. Allied Market Research conducted research and reported that global big data and analytics marketing is going to be worth USD 420.98 billion by 2027 at a CAGR of 10.9%.
This forecast reveals that the need for advanced analytics tools is going to be exaggerated. That’s why it’s certain that BPOs will overwhelmingly evolve and use advanced analytics tools to catch up with insights into back-office operations, customers, and markets. So, it will remain a trend in the digital future.
- Cloud-Based Business Operations
A report by MarketsandMarkets reveals that global cloud-based BPO marketing is likely to expand from USD 42.2 billion in 2020 to USD 94.6 billion by 2025. And this growth rate is measured at a CAGR of 17.5%. These statistics clearly indicate that cloud-based solutions are going to be the next trend for enhancing data security, scalability, and saving money.
With these services, beneficiaries are able to scale up, attain flexibility, and obtain economical business solutions. Considering how these cloud-based BPO services provide companies with a convenient option to process data from anywhere, Businesses attain and will continue to attain continuity while experiencing minimal downtime.
- Booming Knowledge Process Outsourcing (KPO)
KPOs are knowledge producers. They are such efficient outsourcing entities that process data and deliver knowledge, which can be called business intelligence, customer intelligence, process intelligence, or market intelligence. However, BPOs also provide these services, but these outsourcing entities integrate values and specialized ideas for intelligence. Because of its incredible contribution and unparalleled role, the KPO industry will scale and become a market worth USD 124.29 billion by 2025.
These entities are typically involved in complex processing and analytics. Simply put, their dimension covers data analytics, knowledge consulting, research, and system development for industries like healthcare, finance, and legal firms. These outsourcing services are likely to trend more because of their increasing capabilities to offer value-added and specialised strategies for effective business operations.
- Upskilling Human Talent
Despite the fact that technologies are pivotal in evolving BPO services, human talent is still imperative. For sure, automation is going to challenge human involvement. But upskilling and reskilling are more important to save their existence in the machine-dominating digital age.
A report by the World Economic Forum reveals that 50% of all workforces will need upskilling by 2025 because of pervasive technology usage. Being aware of this need, BPO companies have started investing in AI, data analytics, and other digital training programs for their employees. This is going to be helpful in attracting and retaining top talent in the BPO industry.
· Client-Centricity and Customisation
Customers never get satisfied with what they have. They expect more than just saving money from their BPO partners. They want bespoke solutions that align with their business goals and, hence, deliver results that are measurable. Overall, the future of BPO is and will be based on customer-centricity. They continue to provide tailored services.
In this regard, Deloitte surveyed and revealed that 79% of companies find customer experience a core strength. That’s why BPO providers are increasingly embracing a customer-first approach, which appears crystal clear in their personalised solutions. They decrease labour in data analytics for excellent customer experiences. So, this inclination towards customisation and client-centricity is going to be as-is.
Conclusion
The future of BPO services in the digital age is pervasive and bright. The demand for digital solutions will continue to skyrocket, which these service providers will fulfil by evolving AI, ML, RPA, and many other technologies. These technologies are able to offload the burden of repetitive business operations through automation.