BPO Industry Trends From the First Half of 2023

BPO Industry Trends From the First Half of 2023

Business person pointing at computer in office

The first half of 2023 brought significant changes to the corporate world. As the impacts of inflation materialized and geopolitical shifts redefined international trade, companies across the globe have had to reassess their operational strategies.

In this blog, we’ll dive into a few BPO industry trends, and provide valuable insights to help you navigate these transformative times. So, keep reading to gain a comprehensive understanding of what lies ahead!

Understanding Recent Corporate Shifts and What Lies Ahead for the BPO Industry

We’re halfway through 2023, and thanks to transformations in economics, policy, and technology, the business process outsourcing market is buzzing with excitement. Here’s three BPO industry trends you need to know about:

1. Inflation’s Impact on the Workforce

In normal circumstances, the relationship between supply and demand determines prices. When supply outpaces demand, prices tend to decrease, and when demand surpasses supply, prices tend to rise. This fundamental concept, known as “price elasticity,” applies to various industries, from agricultural exports to semiconductor manufacturing.

However, when it comes to the digital frontier, the dynamics are inherently different. Information Technology is integral to every industry, and when workloads increase or the pool of available candidates shrinks, labor patterns undergo significant changes that defy proportionality—and that’s exactly what big tech companies are currently struggling with.

Inflation, in particular, has exacerbated this situation for US-based enterprises. With the cost of living and wages on the rise, 2023 saw a broader search for technology talent. More and more organizations began to tap into global talent pools, and quickly realized that outsourcing their IT roles was an overlooked, yet extremely viable solution.

2. The Emergence of New Global Players

This year, the US-China bilateral relationship took a turn for the worse, prompting the majority of transnational corporations to cut off connections with the CCP. While this may seem like “just” a policy issue, that sentiment couldn’t be further from the truth.

In fact, its effects have already begun to permeate through many businesses. With globalization starting to slow down, companies have shifted their attention towards the rest of North America to develop fully-regionalized operations.

“But why?” you might ask. “The US already boasts a highly-skilled labor force, right?”

Well, yes. However, it primarily focuses on value-added activities, choosing to outsource most of its non-essential business functions. That’s why, in this new era of trade, Mexico has emerged as a strong contender to help these companies supplement their workload.

Let’s explore a few reasons why the next global player might be closer than you think:

  • Regulations and Protections: Over the years, it’s become common practice for developers in China to replicate United States software designs. However, in Mexico, the intellectual property laws tend to be much more robust. For companies looking to reduce the likelihood of such incidents, nearshore software development has become a promising solution
  • Cultural Affinity: English is the second most spoken language in Mexico, making it relatively easier for US companies to conduct business south of the border. Should you choose to outsource your customer service, this linguistic compatibility helps foster seamless communication between all parties.
  • Time Zone Differences: Mexico operates in the same time zones as the United States, including Central, Pacific, Mountain, and Eastern. This synchronicity allows you to engage in real-time business interactions.

As we find ourselves hitting the halfway mark of 2023, now is the perfect time to reassess your strategic partnerships. Learn why outsourcing your business processes with a nearshore provider is a great place to start.

3. Artificial Intelligence and Automation

Artificial Intelligence continues to transform the corporate landscape, and the BPO industry is no exception. Here’s a few reasons why automation is changing the way many organizations approach their back office functions:

  • Increased Productivity: By automating manual tasks, automation frees up valuable resources, enabling employees to focus on more strategic, complex activities. This leads to heightened productivity and faster turnaround times, as routine processes are easily streamlined.
  • Enhanced Customer Experience: AI-powered chatbots and virtual assistants are revolutionizing customer support services, by providing immediate responses, operating round the clock, and quickly resolving customer issues. This significantly improves the overall customer experience, resulting in higher satisfaction and customer retention rates.
  • Advanced Data Analytics: Automation has enabled BPO companies to conduct in-depth data analysis, unlocking valuable insights for both the provider and their clients. With AI-driven analytics tools, your businesses gain a deeper understanding of customer behavior, market trends, and operational performance—which goes a long way toward driving both short-term and long-term strategic planning.
  • Process Adaptation: AI automation tools allow BPO processes to be easily modified or reconfigured, ensuring they align with changing workflows, regulations, or client demands.
  • Continuous Improvement: Automated systems continually analyze performance data and feedback, identifying areas for process enhancements. In return, this helps drive efficiency and encourages innovation throughout every department in your organization.

Outsource Your Business Processes With GGA Solutions

As we cross the halfway mark of 2023, it’s time to refine your strategic partnerships. And when it comes to reassessing your business processes, look no further than GGA Solutions. Conveniently situated less than 20 minutes from San Diego, traditional outsourcing barriers can become a thing of the past.

Don’t let this pivotal year slip away—it’s time to take charge of your strategic partnerships! Reach out to GGA today, and discover how we assemble your entire support team for a fraction of the cost.