The global Business Process Management (BPM) industry is constantly changing with continuous evolution in customer needs and behaviors. This change is depending upon a robust outsourcing market. Besides, customers currently are more empowered, more connected to the organizations and to one another, and more diversified worldwide. This is an indicator of how the businesses are going to perform in their near future.
The BPM industry is responding to this by deliberately embracing the cutting-edge technologies. Today, the industrial organizations are realizing that the legacy service models and platforms will make it difficult for them to cope with rapidly changing customer expectations. Thus, with the market transformation, businesses and their outsourcing partners are paving a creative way to transform themselves and stay relevant.
There are significant outsourcing trends that are impacting the BPM industry. These trends are evolving over time as the companies develop new capabilities and strategies to conduct business. These concepts also enable companies to outsource their business and take advantage of the new capabilities arising in the marketplace.
Automation and Digitization
An independent survey projected that most of the international companies will have digital transformation as their business strategy, by the end of this decade. The global outsourcing market is affected by this rapid influence of digitization. This will require wide implementation of disruptive technologies. Organizations need to look for and work with the efficient outsourcing partners that have innovative digital capabilities. This leads to the reduced human-based operations and allows the organizations to focus on their higher-value activities.
Digital transformation is enabled by the automation. The Robotic Process Automation (RPA) is also emerging as an exciting trend in the BPM industry. RPA cables the BPM software and cognitive processing to replace the human labor. Many BPM solution providers are embracing it to lower costs in a long run, regardless of the high initial costs.
Automation and digitization are transforming the economics and effectiveness of the global outsourcing market.
Innovation of Services
The innovation of services and operations is influencing the methodology of delivered services within the organizations. These changes are also extended in the delivery of outsourced services significantly. Customer feedbacks have often shown that the outsourcing and innovations are incompatible. The reason is the consumers expect extremely reliable services in a cost-effective manner whenever they interact with an outsourcer. On the other hand, BPM solution providers are driven by a robust bottom line to balance the costs of introducing automation and innovation, at least in a short time span.
Earlier the BPM industry was not in the favor to adopt creative and disruptive innovations. The reasons include the high initial cost of new technology, the time required for training, and well-established functional methods already in place.
But today, clients in the outsourcing space are expecting high-valued innovative services. Therefore, the outsourcing organizations need to adopt continuous upgrading processes through new-age technologies.
Influence of the Social Media
The interactions of customers with their service providers are shifting to the newer, faster networks of their choice as their daily lives are becoming more digitalized. This journey is becoming more dynamic, accessible, and continuous day-by-day. Currently, the clients focus on having a seamless, integrated, consistent, and personalized experience. Recent trends prove that they prefer interactions or self-service through the social media.
Enterprises are now relying on the BPM industry partners to engage with the customers on these channels. The adoption of these services is going forward as many of the BPM solution provider companies are offering professional services and analytics practices to address this demand. This requires agents with the well-developed skills for customer interactions. Therefore, to confirm that the new agents are furnished with better skill levels, majority of the BPM solution providers are re-evaluating agent hiring profiles and programs related to it, to engage effectively on social media.
Transformation of the Global Market Scenario
Outsourcing businesses are changing due to the fluctuations in the global market. The key enablers for this change are the currency fluctuations, process automation displacing low-cost labor in developed countries, and security situations in some outsourcing nations. However, there has been a reduction in the outsourcing costs due to the shifting of traditional datacenter-based business operations and services to cloud-based. Businesses now engage organizations that deliver services in the cloud and manage these services in-house.
So, many countries are offering services of greater specialization by which the workers in the service sectors like data analysts face foreign competition to get employed. In addition, it also creates other jobs in countries that outsource business. In some cases, it is about the overseas expansion of a company by hiring more workers domestically in management, logistics, or R&D. Altogether it is a win-win situation.
Future of BPM Industry
An independent market survey states that only nineteen percent of businesses that outsource consider their existing outsourcing partnership as a ‘strategic relationship’ and thirty-seven percent want their services to be more resourceful in the coming future. This indicates that the outsourcing customers are looking forward to more upgraded high-quality BPM services than available at the present. The future will witness the emergence of higher-value services in the customer care BPM market to address business outcomes through consulting, planning, and analysis.
BPM Trends are Deeply Impacting the Business World
