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These are the Problems of Business Process Outsourcing (BPO) Firms

Business Process Outsourcing (BPO) firms establish themselves more in the developing countries than in the developed countries. A solid foundation is important for the BPO firms that have a link between their companies and their clients through effective communication if such companies really want to do extremely well in the market. Countries like Mexico, Philippines, India, and Malaysia are vying to have a stand in the BPO market, while EL Salvador, Puerto Rico and Guatemala are gaining popularity. But the fact is that all these countries confront some problems because they actually want to carry out business.

Here are some of the challenges:

1. Beyond Customer Expectations

Providing customers with absolute satisfaction should be the major criteria of all BPOs. The expectation of the customers is increasing rapidly as a result of several social media channels. They are turning out to be the subject of a tough issue to the BPO companies.

2. Recurrent Disruption

Frequent power outage, poor Internet connections, and call traffic management are the order of the day in the Business Process Outsourcing firms. A little disturbance can cause a great loss to the business even as they have to run their outsourcing business 24/7.

3. Lack of Skilled Workforce

To ensure a successful business outsourcing, there must be knowledgeable and skilled workforce in place. But the issue now is that nearly all the countries lack the right skilled workers.

4. High Attrition Rates

Attrition causes many losses in the aptitude and acquiring major losses in training the employees. The attrition rate is much more than the UK based BPO companies in countries like the Philippines. This is due to the fact that an employee in the Philippines doesn’t stay more than 11 months but those in the UK stay for at least 3 years before changing their job.

5. Changing Political Situations

The Business Process Outsourcing industry can be very much affected by the political circumstances of the area they are situated. Outsourcing of services to other countries is as well prevented by certain bills being passed by the governments. Citizens’ protests, wars, and falling economies can be major reasons for the issue. The outsourcing companies can be affected majorly by this.

6. New Countries Entering the Industry

Only a few countries are in the business of international outsourcing services in the past. But at present, new countries are coming into the BPO industry. As a result, such countries need to offer matchless skilled professionals that can operate the business. In addition, good infrastructure will be a concrete improvement to the outsourcing services group.

Other challenges are brand equity, the increase of opposition against outsourcing and health issues. These are a number of serious challenges of international outsourcing services. However, understanding how to tackle these challenges quickly can make a business outsourcing company experience a tremendous success.

Daven Michaels is a New York Times Best Selling Author and CEO of the premier global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

One Response to “These are the Problems of Business Process Outsourcing (BPO) Firms”

  1. Thanks for the tip. Will check it out.

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