Considering the global competitive business process outsourcing (BPO) industry, the role of technology in outsourcing to the Philippines is fundamental to keep up with competition and stay ahead of the curve. Outsourcing has undoubtedly increased with technological development, thanks to significant improvements in automation, collaboration, communication, data analytics, and security. With the rapid and consistent advancements in technology, people have gained access to easier work. The existence of technology-based services has definitely changed the game in business process outsourcing, especially information technology outsourcing. Overall, technology is driving innovation in the outsourcing industry, enabling companies to take advantage of new tools and technologies to improve the efficiency and cost-effectiveness of outsourced processes.
The importance of technology in outsourcing
With the advancement of technology, business process outsourcing is made easier, more convenient, and more accessible. Information technology outsourcing has also been influencing and shaping the latest outsourcing trends, particularly the transition from a service-oriented to a technology-intensive process. Incorporating technology in outsourcing has given outsourcing companies and businesses significant technological upgrades and business model innovations. The Fourth Industrial Revolution is already here and is transforming the world of work through artificial intelligence, machine learning, advanced robotics, automation, analytics, and the Internet of Things.
“New business process services are emerging that integrate human process work with collaboration and automation via technology enablers and automation platforms. We’re also seeing next-generation technologies like cloud, social tools, and analytics much more effectively applied to deliver business process services,” says Paul Roehrig, a senior BPO specialist at Cognizant.
Advantages of using technology in outsourcing
Outsourcing gets better with technology. The new tools and technologies present today help improve the efficiency, productivity, and cost-effectiveness of outsourced processes, especially customer service and the customer experience in general. Deloitte reports that at present, close to 50% of business process outsourcing engagements are based on traditional models; however, a large number of companies are expecting transformational changes to this model in the next two to three years. While this does not mean that the traditional engagement models will disappear, it presents cost-saving and operational efficiency opportunities for service providers that are embracing change and adding more technological capabilities to their portfolio.
A notable advantage technology has given outsourcing is automation, which is a key trend in the outsourcing business. Automation enables companies to automate repetitive, low-level tasks to reduce costs and free up their workforce to focus on more strategic activities. With AI as its steam engine, it expands the possibilities for how businesses approach real-time engagement with their customers, manage their operations and ensure business continuity.
Communication and collaboration in outsourcing also gained significant advantage thanks to technology.
The creation of cloud-based collaboration tools and platforms has allowed teams to work together in real-time, no matter where they are located, making this particularly useful for companies that work with remote service providers or outsourced teams.
Data analytics in outsourcing has also improved with technology, enabling companies to benefit from better and more accurate data to enhance decision-making, track performance metrics, identify trends, and gain insights into the efficiency of their outsourced processes.
The most important advantage of technology in outsourcing is security, as technology is integral to security. CCTV, access control systems and alarms, as well as integrated IT management systems can support the outsourcing operations to keep organisations and their people safe. With enhanced security thanks to technology, it is now easier for companies and businesses to improve data security and protect sensitive information. Technologies such as encryption, secure file sharing, and identity management are all being used to improve data security in the outsourcing industry.
The impact of technology on the outsourcing industry
Incorporating technology in business process outsourcing has led to groundbreaking innovations especially in terms of automation and machine learning, which has led to the utilization of artificial intelligence to minimize human efforts by performing routine tasks and allowing people to concentrate on the main business goals. Businesses have been using business process outsourcing for years to cut costs and improve the efficiency and quality of customer experience and customer satisfaction, and technology has only increased this trend. Information technology outsourcing in particular provides businesses a faster operation processing and a wider information distribution and market reach. A recent study by Accenture has revealed that 40% of respondents who made use of BPO services rated the technology used by their provider to be an important aspect of their relationship. 56% also believe that gaining access to technology in a BPO relationship is important.
Utilizing technology in outsourcing to the Philippines
The Philippines has utilized cutting-edge technology in call centers to improve the efficiency and quality of the customer experience in outsourcing.
Artificial intelligence (AI) and machine learning (ML) are implemented to automate certain tasks and processes in both the front and back offices. Interactive voice response (IVR) is also commonly used, wherein IVR systems allow customers to interact with a computerized system using their voice or phone keypad, rather than speaking with a human agent. Other advanced technologies that are being used in call centers in the Philippines include cloud-based systems, which allow for remote access and increased flexibility, and omnichannel communication platforms, which allow customers to reach out through a variety of channels (e.g., phone, email, chat, social media) and have their interactions seamlessly connected across these channels, according to Business World Online.
Challenges and considerations
A recent study released by McKinsey Global Institute reports that roughly one-fifth of the global workforce will be impacted by the adoption of AI and automation, with the most significant impact in developed nations like the UK, German and US. By 2022, 50% of companies and businesses believe that automation will decrease their numbers of full-time staff and by 2030, robots will replace 800 million workers across the world. However, we can only automate 15-70% of digital work depending on the task involved, which means we still need humans for the remaining 30%-85% of all tasks to ensure quality customer experience, customer service, and customer satisfaction.
Focus On Business says that the successful deployment of automation and machine learning technologies requires a well thought-out strategy and needs to include three important elements: AI technology, data, and humans. Combining these three elements is essential for success. With this, AI can help outsourcing companies automate simple and mundane tasks, augment human workers and allow them to focus on higher value tasks, provide managers with insights into complex decision-making processes, change how companies work and increase their business velocity and work efficiency, and of course, reduce costs.
Frequently asked questions
Why should you outsource your business to the Philippines
According to Colliers, the Philippines has remained a top-tier outsourcing destination for the business process outsourcing industry. It is a market leader in terms of voice-related services, and it is rapidly expanding its capacity to provide non-voice Business Process Management (BPM) and IT services for the expanding list of global clientele. The Philippine economy is also one of the fastest growing economies in Southeast Asia, with support from the national government significantly investing to position Manila as the leading global provider of outsourcing services. The outsourcing industry is currently valued at $250 billion, foreign investment is welcomed and government support is very much alive. The national government continues to actively invest in the nation’s infrastructure and technology to support the outsourcing business. Tax and non-tax incentives are available to support foreign investment.
How does outsourcing help your business grow?
Outsourcing is a critical tool for innovation.
The shift in industry thinking led to more businesses relying on automation to get things done. Through outsourcing, you can integrate innovative technologies to your business processes as a way to ensure success and improve customer experience. For small businesses, in particular, being able to reduce existing overheads and use the freed-up capital to develop the core, income-generating areas of the business results in stronger and faster growth. Due to advances in technology, outsourcing has become a powerful tool that businesses can utilize to streamline their operations and improve quality control. By outsourcing certain functions of their business such as customer service, tech support, marketing or back office organization, companies can benefit from a range of advantages and automatically open up opportunities for business growth.
If you’re a business owner looking to try outsourcing services for the first time (especially information technology outsourcing) or you’re in the market for the ideal partner to push your business to even greater heights, you don’t have to sweat looking for your outsourcing partner when you can turn to a reliable outsourcing company like The Outsourcer who can provide you everything that you’ve been looking for (and more) with their cutting-edge team of Filipino virtual assistants.
The Outsourcer is a game-changer in the Philippine and Australian outsourcing industry, having only the best talent for whatever job you need to be done. We will work on continuous training and coaching to give you the best results for your outsourcing needs in improving your business processes and customer experience. Save on recruitment and training expenses, while maintaining successful operations to grow your business by scheduling a free consultation with us today.