BPS has significantly changed with the constant adoption of new technologies and business models, including end-to-end support for operation function worldwide across industries.
Artificial intelligence (AI) has changed the commercial landscape since the beginning. Contemplate conversational AI for client service, machine learning (ML) for data analysis, and automation for human-to-human processes. Highlighting few AI tools and technologies used in the BPS sector:
- Self-service Portals: include integrated voice response (IVR) systems, AI-powered chatbots, and knowledge base centres
- Robotic Process Automation (RPA): used for automating routine, repetitive tasks and accelerating processes
- Computer Telephony Integration (CTI): used in call centres with advanced features such as automatic dialling, intelligent call routing, and automated screen pops
- Contact Centre as a Service (CCaaS): best for contact centres with multiple communication channels (phone calls, emails, and chat support)
- Machine Learning (ML): ideal for fraud detection in financial services, customer segmentation in marketing, and predictive analysis for call centre forecasting
- Natural Language Processing (NLP): used for customer service as it can interpret conversations in customer interaction
- Big Data Analytics and Predictive Analytics: best for targeting potential customers in sales and marketing as well as analysing customer data required for forecasting contact volume
The BPS sector is among the many areas in which AI technology is quickly altering and increasing. According to Technavio’s report, the Indian IT and BPO services market is expected to increase USD 214.8 billion between 2024 and 2029, at a CAGR of 12.3%. Although AI appears to have a bright future, there are hazards and difficulties associated with this new technology.
AI is no longer an addition to BPS, it is the engine redefining its speed, precision, and purpose.
– Kathiravan K
Sr. Practice Lead-BPS
MOURI Tech
Exploring Business Opportunities
Implementing AI solutions in the IT Services industry has initiated stimulating business opportunities. This technology proves incredibly beneficial for companies observing to outsource. Let us explore its potential benefits in the outsourcing industry below:
- Improved Operational Efficiency: AI systems and tools can speed up back-end tasks that delay customer-facing and administrative functions that support business operations. Think of RPA as an automation tool that automates BPS tasks, reduces manual work, and accelerates business processes. This capability can lead to an increase in your overall efficiency.
Increased Business Productivity: AI-integrated platforms automate business processes. Rather than AI replacing call center agents, AI helps speed up non-core tasks, allowing employees to prioritize core functions. For example, Call agents can focus on providing e-commerce customer support instead of spending time on manual data entry and inventory management.
- Targeted Leads and Increased Sales: Data and predictive analytics can help develop a buyer persona, target prospects, and generate leads. These AI tools can assist telemarketers in their jobs and help boost their sales. Their wide use is one reason businesses welcome both the opportunities and challenges of integrating AI into outsourcing.
- Enhanced Digital Marketing: AI tools and systems can optimize online marketing strategies such as search engine optimization (SEO), pay-per-click (PPC) advertising, and content marketing. For instance, you can leverage ChatGPT and other generative AI platforms for content creation and produce blogs, guest posts, or marketing copy.
- Effective Customer Service: BPS call centers leverage CTI and CCaaS technology with automation and AI adoption. They can empower call agents to assist customers faster and better. Enhanced output improves the customer’s journey, experience, and satisfaction.
- Empowered Self-service Portals: They empower call agents, and AI-integrated platforms also help customers. Consider self-service portals such as IVR systems, chatbots, and knowledge base centers. These are a few reasons BPS service providers embrace the opportunities and challenges of integrating AI into outsourcing
- Seamless Contact Management: CTI and CCaaS technologies have advanced features such as automatic dialing and data analysis. Contact center agents can seamlessly answer incoming calls and place outgoing calls. The same applies to quality assurance (QA) teams auditing contacts and management generating reports.
- Solid Data Recording and Analysis: AI in BPS ensures efficient and accurate data recording and analysis. AI-powered tools can extract, organize, and analyze vast amounts of data. Based on patterns and trends, they provide valuable insights for business forecasting, decision-making, and process improvements.
The impact of the pandemic ought to be mentioned here. Remote working, touchless facilities, etc. — the almost-instantaneous shift of paradigms at the beginning of this decade also redefined BPS. And it was for the better, fortunately.
With that said, let’s peek into what BPS in the future will be.
The Era of Digital BPS
Next-generation IT services will be built around digital technologies. For a competitive edge, the digital BPS industry is progressively and quickly utilizing automation, big data, real-time analytics, artificial intelligence (AI), and machine learning (ML), and it is always experimenting with these technologies’ potential. Nearing standardization as aspects of BPS services are 5G and AR/VR/XR, which are now popular in the retail and entertainment sectors. The capabilities portfolio of BPS organizations can be enhanced and expanded by combining these technologies.
New-age Technologies: A Game-changer
BPS Industry have started mining for new solutions based on emerging technologies such as AI/ML, analytics and intelligent document processing, to name a few. For instance, Gartner anticipates that the use of AI for BPS services will surge from the current 6% to a whopping 40% over the next two years. This underlines potential investments from the BPS industry in leveraging AI for a wider service range with optimized outcomes.
These technologies are gaining traction primarily by allowing BPS companies to offer an improved customer experience via hyper-personalized services. Advanced analytics enables companies to predict customer sentiments and industry and market trends. Natural Language Processing (NLP) is simplifying documentation, recordkeeping and various clerical formalities. These new-age technologies are thus revolutionizing the personalization of customer experience on various fronts. Like the Italian-German car Pininfarina Battista that set its latest record, BPS providers are expediting footprint and performance growth with the latest technologies.
Evolving Business Models
Traditionally, outsourcing focused on labor arbitrage due to its obvious cost benefits. However, as the expectations in B2B partnerships evolved, organizations shifted focus to output and value addition. Today, the outcome-based pricing model is the most preferred choice in the outsourcing industry.
Modern-age BPS value proposition goes beyond labor arbitrage and encompasses SLA-driven business benefits and advantages. It enables companies to harness transformational innovation and incremental improvement in business processes. As a result, outsourcers realize many benefits, including but not limited to cost reduction, performance elevation and integration of standards such as LEAN and Six Sigma.
Emerging BPS Hubs
The number of outsourcing-related operations is rising in tier 2 and tier 3 nations globally. Companies in the BPS sector are growing their reach to access uncharted territory. Poland, Brazil, Mexico, Malaysia, Argentina, Uruguay, and South Africa are a few second-tier nations that are experiencing a significant increase in the use of information technology-enabled services, or ITES.
Contrary to popular belief, outsourcing business agreements are also being drawn to countries that are not part of the ITES. Several noteworthy ones are Nigeria, Kenya, Ghana, Ethiopia, Morocco, Tunisia, Egypt, and Rwanda. India remains the most popular BPS destination, but China, which is more commonly associated with heavy industries and manufacturing, is gradually making inroads into the BPS market.
With the right expertise to leverage the advancements, BPS can play a pivotal role in offering new possibilities and delivering exceptional value worldwide.
Challenges of Using AI in BPS
The integration of Artificial Intelligence (AI) into several industries has been made possible by the AI revolution, and business process outsourcing is no different. Though AI in business process services has enormous potential to change the sector, the technology is still in its infancy and comes with obstacles in addition to advantages.
Cost is one of the main obstacles to AI-enabled BPS. AI implementation can be costly due to time-consuming development and a lack of standardization, rendering it unavailable to many organizations. In spite of this, BPS stands to gain from AI in terms of increased productivity, accuracy, and cost savings.
An increase in skills is a consequence of AI’s integration into BPS. To effectively use AI, human workers need new types of training. It entails learning AI-related technology, creating new procedures, and adjusting to new roles. To stay competitive, businesses must spend on training and development to upskill their employees.
Data security and privacy will become more crucial as AI in BPS becomes more widely used. Since AI technology uses a lot of data, there is a higher chance of security concerns and data breaches due to the sharing, storing, and processing of massive amounts of data. Consequently, in order to safeguard confidential data, businesses will need to give priority to security measures
The Preferred Partner for Next-gen BPS Industry
Looking ahead, the future of BPS lies in its digital-first approach. The industry’s future will be characterized by AI and other emerging technologies that will drive innovation, efficiency and global collaboration.
Innovative, strategic and sustainable use of existing and emerging technologies calls for partnership with a reliable technology enabler. With the right expertise to leverage the advancements, BPS can play a pivotal role in offering new possibilities and delivering exceptional value worldwide.
Author Bio:
Sr. Practice Lead-BPS, MOURI Tech
Kathir is a seasoned business leader with proven track record in BPS Operations, Transitions and Project & Process Management. He has a proven track record across leading Fortune companies, and brings deep industry expertise and best-in-class practices to drive operational excellence at MOURI Tech.
