What challenges do BPO firms face?

BPO firms tend to focus on the developing world rather than the developed world. For any company that wants to stand out in the market, the BPOs are the base that create a connection between the company and its customers through effective communication. If you don’t know what BPO stands for, it’s better to know that it means business process outsourcing. Some of the countries competing for a foothold in the BPO market are Malaysia, India, the Philippines, China and Mexico. Countries like Guatemala, Puerto Rico and El Salvador are gaining in importance. These countries face some challenges to do business. Some of the challenges facing the industry are as follows:

Changing political scenarios

The BPO industry can be heavily influenced by the political scenario of the region in which it is located. Outsourcing to other countries is also prevented by the passage of certain laws by governments. Economic collapse, wars, civil protests can be a major reason for the matter. The BPO companies can be severely affected.

Common disorders

Poor internet connections, frequent power outages and call traffic management have taken a heavy toll on BPO firms. Since they have to run their business 24/7, a small disruption can mean a big loss to the company.

Lack of talented workforce

Most countries struggle to find the right professionals. Of the total number of graduates that pass each year, only a meager percentage of graduates can qualify for the positions.

Growing resistance to outsourcing

The BPO sectors in one country are being fought by another country. Take India’s BPO industry, for example, which is being opposed by US politicians and British unions. These developed countries believe that BPO activities should not be relocated to developing countries like India. They are more interested in keeping the jobs in their own country to provide jobs to the citizens.

High turnover rates

Attrition causes a lot of talent loss and causes significant losses in employee training. In countries like India the turnover rate is much higher than in UK BPO firms. This is because the worker stays no more than 11 months in India but UK workers at least 3 years to change jobs. The high turnover rate in India is mainly due to the monotonous nature of the work, high stress level, lifestyle change, lack of career growth etc. but once the BPO stabilizes, the turnover rate is expected to decrease.

newcomers to the industry

There used to be only a handful of countries running the global BPO business. Now more and more countries like Canada, China and Malaysia are trying to gain a foothold in the BPO sector. Therefore, such countries must provide unmatched professionals who can take care of the business. Also, better infrastructure will be a practical benefit.

brand equity

Brand building is an important task of BPO companies. The HR professionals play an important role in this part by providing proper education and a good working environment. Even when employees leave the company, they become brand ambassadors for the company. If the employees are dissatisfied, this leads to falling equity with negative reviews.

health concerns

Most companies are located in regions with different time zones. Therefore, there is a good chance that employees will have to work all day. This can be a root cause of a major health issue that drastically reduces employee productivity.

Exceed customer expectations

The main criterion of all BPOs should be to fully satisfy customers. Due to multiple social media channels, customer expectations are increasing rapidly. They become a sphere of tough challenge for the BPO firms.

All of these are some of the tough challenges facing a BPO company today. Where they provide tough competition on the one hand and quickly learn how to deal with it on the other hand, a company can quickly achieve success. It is therefore the responsibility of companies to find a solution that makes sense for their work.