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The future of outsourcing in 2024 has been a topic of much concern lately. The outsourcing industry is projected to expand at a compound annual growth rate (CAGR) of 6.69% to reach US$0.45 trillion in 2024.
This shows the growing demand for business process outsourcing (BPO) services and their potential to completely transform the way businesses operate.
However, there are challenges in the industry—the changes in the global economy, the scarcity of workers, and the increase in inflation. If these problems continue, how will BPO companies maintain their competitive advantage in 2024?
Let’s explore how the BPO industry plans to stay ahead of the game this year!
1. Technology Integration and Automation: Shaping the Future of Outsourcing in 2024
The future of outsourcing in 2024 is directly tied to integrating cutting-edge technologies like automation and artificial intelligence.
This integration can improve operational effectiveness, resulting in more advanced services and lower customer costs. Intelligent algorithms enable automation to simplify repetitive operations in BPO companies, resulting in quicker and more precise job processing.
Here are some anticipated technological changes in BPO operations in 2024:
- Service Delivery Automation (SDA)
By automating repetitive operations and applying cutting-edge technology for analytics and decision-making, the Automation of Service Delivery (SDA) approach aims to improve operational efficiency by optimizing processes using AI (Artificial Intelligence), ML (Machine Learning), and RPA (Robotic Process Automation).
- Over-automation
Over-automation, or hyper-automation, is the complete integration of various technologies, such as RPA and AI, to automate all processes from beginning to end. This minimizes the need for manual intervention and boosts overall productivity.
- Omnichannel Communication Platforms
By facilitating a unified and smooth customer experience across several channels—including chat, email, social media, and phone—omnichannel communication solutions help businesses promote customer happiness and loyalty.
- Call Quality Monitoring with AI
Artificial intelligence (AI) is used in call quality monitoring to evaluate customer interactions in real-time and post-call analysis. This provides real-time insights into how customer service representatives can handle customer interaction to improve overall conversation quality and communication tactics.
2. Global Expansion and Diverse Service Offerings
The BPO industry is expanding internationally in 2024 and providing a greater range of services.
BPO organizations are expected to branch into other markets, such as IT, finance, and customer service. Being more adaptable and technologically advanced enables them to maintain their competitive advantage.
The target is to branch out in areas where the economy is flourishing, which enables them to meet new customers and provide services to sectors of the economy that are seeing rapid growth.
As they expand internationally, these BPO companies may team up with local companies to gain access to local expertise and for them to easily know the ins and outs of the business in a new environment.
3. Hybrid Work Models and Remote Capabilities
BPO companies adopted a new operational standard during the pandemic. However, not all companies have adopted this work set-up. As soon as the pandemic improved, governing agencies ordered companies to return to office operations, especially those working on financial accounts.
Moving into 2024, BPOs are still exploring permanent hybrid work strategies. A 2022 McKinsey survey shows that 79% of employees prefer a hybrid word setup. This will give employees the freedom to work from home or on-site, which may increase their job satisfaction and result in cost-efficient operations.
In addition, by adopting a new hybrid model, BPO companies may aggressively search for qualified workers around the globe, breaking geographical barriers.
4. Focus on Data Security and Compliance
BPO companies must prioritize robust security protocols and follow regulatory requirements in 2024 as the cases of data breaches and cyber-attacks are increasing.
As per the annual report from telecommunications firm Verizon, over 5 billion sensitive customer records were exposed in 2021 due to various digital intrusions and system compromises.
So, as soon as customers provide their personal information, businesses are committed to data protection.
The data security is expected to improve through these measures:
- Robust Data Protection Measures
To enhance the security of client and customer information, BPO companies will adopt and improve robust data protection policies.
This progress requires putting safe data transit protocols, state-of-the-art encryption techniques, and secure storage methods into practice.
By employing these state-of-the-art security measures, BPO businesses aim to lower the likelihood of unauthorized access and data breaches, ensuring higher security and integrity for their confidential information.
- Use of Blockchain Technologies
BPO companies are exploring the potential benefits of blockchain technology for improving data management’s security and transparency.
Blockchain technology provides a strong way to guarantee the integrity, traceability, and immutability of important data through decentralized and impenetrable ledgers. This deliberate integration of secure technologies aligns with the industry’s commitment to supporting data protection measures and maintaining strict compliance guidelines.
- Compliance with Security Regulations
BPO companies, in 2024, are expected to actively adhere to international data protection regulations such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and other industry-relevant standards to ensure strict compliance with regulatory requirements.
5. Focus on Sustainability and Corporate Social Responsibility
Beyond just helping other businesses with work, the future of outsourcing in 2024 hopes to improve local communities and the environment through these efforts:
- Green Operations and Energy Efficiency
Energy-saving technology and environmentally friendly operating procedures can be implemented. To reduce the environmental impact of their operations, they should invest in sustainable infrastructure, energy-efficient machinery, and renewable energy sources.
Additionally, green operations may be achieved by prioritizing sustainability with vendors or suppliers.
- Employee Well-Being Programs
Taking care of employees is a part of corporate social responsibility. Programs that promote mental health assistance, well-being, and a healthy work environment must be implemented to foster a positive work culture among the employees.
Magellan Solutions: Innovating Outsourcing for 2024
As we look towards the future of outsourcing in 2024, are you set for the business transformations that await? We have over 18 years of experience offering small and medium-sized businesses worldwide quality BPO, inbound call center, and customer service outsourcing services.
At Magellan-Soutions, we have the knowledge and tools to support your expansion and success. Our exceptionally talented and devoted experts are committed to meeting and exceeding your expectations with our outstanding achievements.
Reach out to us right now to learn more about how we can support you in achieving your company objectives in 2024 and beyond!
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