South Asia has centred itself as the outsourcing hub of the world. From call centres to programmers to software engineers and beyond, multinationals have relied on the business model of Business Process Outsourcing: outsourcing key aspects of their business to South Asian companies. Now that AI has entered the chat, there is the idea of how BPO’s can best take full advantage of AI in terms of continuing to provide such services at the risk of becoming obsolete. Our contributor Hazel June takes a closer look.
[About the contributor: Hazel June has been a digital entrepreneur working with personal brands who want to leverage their online courses to grow and scale their business. (You can check out her free workshop on her website here). She also works for a BPO and shares her insights here.]
“AI will not replace employees. People who know how to use AI will.”
I heard this statement from one of my mentors and it stuck with me because it makes perfect sense.
Technology related to Artificial Intelligence (AI) has been growing rapidly. Many industries have started adopting it including Business Process Outsourcing (BPO). Not recognizing its impact across different aspects of a company is like refusing to upgrade a flip phone in the era of smartphones.
In fact, a report published in Statista predicts that the AI industry is forecasted to exceed a monumental milestone of “$2 trillion by 2030.”
Since South East Asia is a region filled with BPO companies (think third party coders, call centres etc.), how can these businesses and its employees thrive in these changing times?
Leveraging AI In BPO
What’s the deal with AI in the BPO sector? Well, it’s like having the ultimate sidekick that never tires.
BPO is the practice of outsourcing various tasks to third-party companies so that the business can focus their skills to key areas of their growing business.
AI, with its myriad features and tools like chatbots, machine learning, and automated analytics, is transforming different parts of the business. It can automate repetitive tasks, enhance the customer support experience, improve operational efficiency, automate data collection, enhance data analytics and more.
Here are the top advantages of using AI in the BPO industry (or any industry):
- Enhanced productivity and efficiency
- Better and more accurate data insights and analytics
- Scalability and cost savings
All these lead to improving the bottom line. By enhancing efficiency and reducing overheads, BPO companies can reinvest their savings into further innovations or even better, improve customer experiences. It’s a virtuous cycle that fosters growth, satisfaction, and, ultimately, profitability.
Let’s dig deeper on a specific use case for each of these benefits.
Cracking The Efficiency Code
In a world where time is money, efficiency is king. BPO companies can use AI to cut through the noise and focus on what truly matters. Automated processes can take over mundane tasks, allowing human agents to concentrate on complex issues and provide solutions that leave customers smiling. It’s like having an invisible helper, tidying up behind the scenes, ensuring everything runs like clockwork.
Collecting And Analyzing Data
Most BPO companies provide call center services and with AI, they will be able to quickly analyze data on call handling times, first contact resolution, customer satisfaction, and more. AI can also process huge amounts of data and identify trends or patterns, which can be really helpful in making data-driven decisions.
Scalability And Sustainable Growth
Remember the daunting task of training new employees? Or upskilling existing staff? They’re both time-consuming and costly initiatives. With AI, BPO companies can train or upskill new and existing employees at scale— regardless of time zones and locations. This not only slashes training costs but also helps meet the demands of a company’s expanding workforce.
Navigating The Challenges
Sure, integrating AI into traditional BPO operations isn’t without its challenges. There’s the initial investment, the learning curve for staff, and the ever-present concerns about data privacy.
However, an article of Unity Communications states the following and I couldn’t agree more.
“A close examination of the use of AI and the role of machine learning in BPO suggests that it will not replace people. Rather, developing new types of work requiring different expertise and skills will counteract the displacement of human employees.”
So how do businesses and employees stay relevant?
A research by Arntz, Gregory, and Zierahn in 2016 “emphasizes the need for organizations to invest in reskilling and upskilling initiatives, establishing a learning culture that empowers employees to adapt and grow alongside technological advancements.”
Bottomline: AI is not just changing the game but also setting a whole new playing field for BPO companies in Southeast Asia (and quite frankly, the whole world).
It’s not just about keeping up; it’s about leveraging the power of AI for increased efficiency and cost savings. And as we step into this new era, one thing is clear: like in any other industry, the integration of AI into BPO isn’t just a trend—it’s the future.
Main Image Photo Credit: Unsplash