Emergence of New Technologies Fuels the Need for Business Process Outsourcing

November 2022

Business process outsourcing is a partnership with service providers outside your business. The aim is to handle the duties and operations of various business processes through outsourcing partners. BPO services solve the hustle at work through their advantages, such as low prices, flexibility, and high service quality. It also enables businesses to return to maintain their integrity by providing clients additional value. Due to their advantages across end-use industries, including IT & telecommunication, BFSI, and healthcare, BPO services are in high demand.

One of the key elements driving the expansion of BPO services is the rising popularity of cloud computing in business process outsourcing. Cloud computing enables BPO providers with quick turnaround time, better quality control, and lower expenses. Furthermore, cloud computing in BPO enables immediate system and computer support, flexible provisioning, and all-access whenever necessary to satisfy corporate needs. During the forecast period, these advantages are predicted to favor adopting cloud computing in the business process outsourcing market.

The market for business process outsourcing was estimated to be worth USD 245.9 billion in 2021 and is anticipated to increase at a CAGR of 9.1% from 2022 to 2030.

The Allure of BPO

Businesses frequently choose BPO because it gives them more operational flexibility. Enterprises save a lot ooftime and resources consumed by customer interactions and product leadership. Outsourcing helps them in non-core and administrative tasks, giving them an edge over rival companies in their market.

BPO provides businesses with access to innovative technological resources that they might not otherwise have. BPO partners and companies continuously try to improve their processes by implementing the newest technologies and methods.

BPO aids businesses in rapid resource reassignment, enhanced productivity, and prompt and accurate reporting.


Working with a BPO provider presents the risk of a security breach because confidential information must be exchanged and processed.

An organization may grow acclimated to a BPO company's methods and develop an unhealthy dependence on them if work is outsourced to them for an extended time. If required, it results in the organization paying more than typical costs.

The language barrier may be a productivity obstacle when working with an offshore BPO provider. Miscommunication can result in errors when work is outsourced, especially when several individuals are involved, as with development or IT services. Sometimes, it can be costly.

The organization can underestimate the amount of work because it isn't always hard and fast, which could result in higher costs than anticipated. Working with a BPO business can result in legal costs if there is a disagreement or conflict. Indirect costs might also be a result of work delivery delays.

COVID-19 Impact

The COVID-19 epidemic has impacted global corporate sectors' outsourcing practices. There will be both immediate and long-term challenges for the BPO sector. This pandemic highlights the weak points in the brittle ecology of outsourced IT-BPO services. The BPO service sector, like other sectors, finds it difficult to adapt to remote work and work from home (WFH). Handling sensitive data and information between clients and the business is typical. They deal with personal back-office details, such as financial transactions, which makes the BPO sector less flexible in modifying and implementing the WFM model.

At the start of 2020, the significant rise in COVID-19 cases led to social and economic disruptions and difficulties with outsourcing tasks. However, it is anticipated that these disruptions' effects on corporate operations will ultimately fuel the industry. By reorganizing their Business Continuity Plans (BCP) to a distributed workforce, BPO organizations have altered their business models.

Businesses have acknowledged the significance of continuous operations planning and disaster recovery to create a more dependable business model that can withstand an unanticipated disruption like the COVID-19 pandemic. For instance, in 2020, the major players in the BPO sector, such as Accenture and Infosys Limited (Infosys BPM), claimed that more than 80–90% of their staff could not work during COVID.

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