BPO in the Information Age
From the late 1990s until the early 2000s, the Internet may not have been as good as it is now, but it has given us the structure and design of the BPO we recognize. Based on cost-effectiveness, an increasing number of companies currently rely on outsourcing partners in countries such as India, China, and the Philippines for their non-core business functions.
The leading BPO businesses entered a period of considerable market sophistication in the mid-2000s. Naturally, as with any growth-oriented field, they began wondering if they should do more. BPO corporations began to re-evaluate their position in the multinational supply chain and began creating their narrative: to take on the role of strategic partners and to expand into central and back-office activities. To improve consistency and effectiveness, prospective BPO service providers have been implementing methodologies for systems such as Lean and Six Sigma.
BPO services companies started to build new capabilities in their portfolios at the end of the 2000s, which introduced more dynamic and high-value processes with more expertise. Professional BPO service providers have achieved this development by using new strategies and expanding their workforce’s capability to serve growing business demands. This included the build-up of talent in different fields, the use of technological advances, and a highly educated workforce.
Today, BPO vendors also provide high-end capabilities such as financial and industry research, credit assessments, customer analytics, cybersecurity solutions, digital information processing, and more. Through their collective competencies, BPOs have been able to support their clients generate greater interest by assimilating a range of products and services. The change was part of the global expansion of the cloud as businesses started to pursue the Everything-as-a-Service model.
Over the years, more brands have embraced the convenience of outsourcing. Traditional in-house activities such as data processing, social media marketing, and customer support (chat or call) operations are now part of many conventional BPO companies.