Major Challenges Faced by BPO Industry


Major Challenges Faced by BPO Industry

The BPO industry is a multi-million-dollar industry that is expanding widely across the world. As it progresses further, the challenges get more stringent.

FREMONT, CA: Factors such as cost advantage, risk mitigation, utilization improvement, and high competency have collaborated in sync to contribute to the tremendous growth of the BPO industry. The high level of development and peer competition in the domain have also created a set of challenges for the BPO management of the companies. The challenges top management has to endure while working in the BPO industry are listed here –

Varying Political Scenarios

Political situations of the country can significantly affect the BPO industry. Any disruption can force the governments to pass certain bills, which might prevent outsourcing to other countries. 

Meeting Customer Expectations

Ensuring a sense of satisfaction among customers is a difficult task for BPO companies. The increase in social media awareness and market competition has boosted customers’ expectations, raising challenges for the BPO industry.

Shoestring Budgets

The outsourcing companies need to produce best results with barely minimal costs. Hence, they are forced to maximum out their limited number of resources.

Health Concerns

Outsourcing companies have to adhere to the local timings that come under different time zones. Hence the resources end up working at all times of the day, resulting in significant health concerns. 

Customer Attrition

Sometimes, the client may terminate the deal and hand over the project to the competitor for several reasons. The costs may plummet, leading to termination, affecting BPO companies.

Scarcity of Talent

To find the aptly talented workforce to work in the company costs significantly. According to a recent survey, it was noted that only a fraction of graduates is suitable and ready to work in the BPO industry.

Employee Attrition

The employee attrition rate in the BPO industry is quite high as the companies fail to retain their employees for an extended period and thereby suffer huge losses every time they train new employees.

Communication Channels

Communication via multi-channels has drastically improved over the past decade. The option of calls, emails, and messages in social media, has proven to be quite challenging for BPO companies, especially when deciding which channel to concentrate on to extend interactions with the clients.

Frequent Disruptions

Disruption in various processes like call traffic management and a poor internet connection can cost the companies a lot and can be challenging.

Brand Equity

Brand building is a critical task performed by the HR professional. HR managers are expected to offer adequate training and the right working environment. If the employees are unhappy, it can lead to negative word-of-mouth, thereby causing diminished brand equity.