What should BPO service providers expect this 2014? With a global economy that remains in the process of recovery, outsourcing and offshoring is still enjoying growth. Even though this had slowed down compared to its performance in the last few years. In this post, KMC Solutions runs down some of the upcoming trends to watch for in the industry this year.
1. Vertical integration
More clients are looking for service providers that offer a complete package to reduce costs and turnaround time. For example, a business thinking of outsourcing to the Philippines would prefer a one-stop shop that offers all the services they need. This is preferable instead of hiring a separate firm for staff leasing and another firm capable of providing their serviced office requirements.
2. More opportunities in mid-market sector
The market of outsourcing and offshoring within Fortune 500 companies and other multinational firms is quickly becoming saturated. This should tell outsourcing and offshoring services providers that they need to start focusing on SMEs. With this result, service providers need to be able to build trust and good relationships with clients and at the same time, adapt a new pricing structure and process that works for these companies.
3. Increased investments in disaster recovery sites and business continuity plans
The rise of massive and devastating storms (i.e. Typhoon Haiyan) highlights increased risk in outsourcing hubs like the Philippines and emphasizes the need of having comprehensive business continuity and disaster recovery plans in place. More companies need to review organizational plans and invest in disaster recovery sites in locations with talent and proven infrastructure.
4. Emergence of lower cost consulting
Consultants need to create a lower cost consulting model responding to the requirements of the mid-market BPO sector. This model can be designed for SME clients who wish to retain relationships but with less intense financial commitments.
5. More emphasis on IT infrastructure and capabilities
Competition is expected to become tighter among IT-BPO service providers, and winning the contract or account can boil down to a facility or company’s IT infrastructure and capabilities. Investing in the newest equipment and improving workflows and processes are necessary to ensure that the provider offers the best value, and ultimately creating long-term business relationships with both potential and existing clients.