Offshoring Predictions for 2018: Part 3

18 Dec 2017

We are at the third and final part of our offshoring predictions for 2018. In this series, we covered how data security will become a bigger priority and what the reduced barriers of entries are. There were also discussions of automation’s role in the BPO industry and why businesses can only mature when they adopt cloud technologies.

This week, we dive into the importance of software development and how it continuously impacts the BPO industry. We also take a look at the state of call centers and why providers need to shy away from offering only customer service to their clients.

Price Versus Quality

Cost-saving is one of the pillars of offshoring and the BPO Industry in general. It strives to provide the highest level of service to clients at a lowered cost than they would when hiring locally. Recently however, more companies are realizing the importance of quality as well. While price remains a big factor for companies deciding to offshore, some are willing to pay more if the quality of work they get is high. This justifies the extra cost as it provides an extra edge over their competitors.

Cutting costs is always a good idea but it is much different from spending less than competitors. Offshoring providers like Diversify recognize the talent of the Filipino talent pool. By staying updated with all the latest trends, they are able to anticipate what clients want and provide them with the team they need. And the price is no longer a key factor. People agree to pay more if the price is justified and they get high quality.

The State of Call Centers

One of the major themes of our offshoring predictions has been about versatility. Between adapting new technologies and not settling for niche services, versatile offshore providers are bound to last in the long run. With more automation and hiring of virtual assistants in the coming years, the call center as we know it is in decline.

This should come as no surprise. The BPO Industry has come a long way from being wrongly synonymous with “The call center industry.” In order to stay successful for as long as it has, the BPO industry needed to adapt to changing times. With offshoring being able to provide quality service for mid and even high level tasks, there will be a rise of the tech savvy contact centers. According to Anna Frazzetto, chief digital technology officer and senior vice president with Harvey Nash, these centers can handle more volume since virtual agents and assistants can work on several clients at the same time. She added that the efficiency provided by service providers will cause businesses to “shy away from investments in mega call centers that require staffs of thousands.”

Expanding Newer Opportunities

One of our earlier predictions was offshoring being more accessible due to lesser barriers of entries. Because of this, more businesses will be able to establish themselves in their respective industry at a lesser cost than a few years ago. These startups will be able to access third party services – like offshoring – to help get themselves off the ground and establish themselves.

This works both ways. As more trust is placed into offshoring providers by these new businesses, their viability also increases. By delivering quality services to newer industries and companies, the offshoring business model becomes more accepted and credible in the long run.

There is plenty to be taken from offshoring, but it is also not without its challenges. While it may seem appealing from a cost saving perspective, there are other factors to consider. Companies that have had bad experiences with offshoring often did not fully grasp what it means to have it as a business strategy. With 2018 just around the corner, it’s time to seriously consider your business objectives on a global scale.

If you are looking for a solution that can help you compete globally at a cost effective approach, offshoring might just be for you. Contact us today to start your new year on the right track.