Outsourcing activity has gained considerable pace in the recent years and the prime reason still remains the need for cutting down cost. Today when organizations grapple with the challenges and opportunities presented by globalization and emerging new technologies such as social media applications and cloud computing, they have started expecting more from the BPO service providers. Organizations looking for BPO’s are now assessing the IT capabilities and systems of their outsourcing service provider along with their domain knowledge and resource capabilities.
To meet the challenging demands of the clients, BPO companies in general are integrating high end IT capabilities to their business model. Outsourcing companies are adopting latest technologies like cloud computing, social media platforms and are integrating business analytics software and other process automation software into their business processes. This is helping them to reduce cost and to deliver services more effectively.
According to a recent research, high performing BPO companies use technologies as a tool to deliver high business value services to their clients. Nowadays companies seeking BPO services are considering the technology provided by the provider as an important factor while firming the relationship or deal. They also feel that it is important for the BPO providers to have access to latest technologies to provide them the desired outcomes. According to industry experts, adopting latest technologies will help the BPO companies to reduce their operating cost, helps them to streamline and standardize their process.
Use of Big Data largely by the companies to analyze and improve their business model requires the BPOs to go for automation. Large amount of data in terabytes are being generated everyday and it is getting difficult for the companies to extract these data and analyze them. Moreover they lack the expertise and technology to extract this gold mine. Because of this limitation, companies are outsourcing to BPOs the process of analyzing the data. The clients expect their service providers to identify new opportunities that add value to their business by analyzing data.
BPOs with their industrial expertise and experience tap the transactional information for the clients. For this, the BPOs need to upgrade their technology and automate their process to analyze the data. Technology play important role by helping the service providers to extract the most relevant data that are generated and help them to analyze the data more effectively and provide useful insight for the clients.
As outsourcing relationships are more like an alliance where both partners expect value from the relation both the parties are careful while choosing their partners. While clients benefit by the way of gaining more value for their money spend on outsourcing, the outsourcing companies achieve more efficiency in their service delivery process by adding new technologies. By integrating IT to their service delivery process, the BPOs are evolving new business model. As the capability of BPOs increase with new technologies, the clients expect their vendors to provide them with better services to improve their bottom line.