Tackling Common Obstacles in the BPO Industry

Key takeaways:

• BPO is a fast-growing industry that sometimes faces unique challenges.
• You may encounter cultural and language barriers when you hire a global team. 
• A good BPO company will understand the customs and norms of the countries where they are operating and recruiting.
• Communication issues can arise when collaborating with workers in other places.
• Have a plan in place for dealing with power failures, poor internet connection, or other disruptions that could affect workflow. 
• The politics and legislation in other countries can impact BPO.
• Keep up to date on the current events in countries where you recruit and outsource.
• Tight budgets can be a constraint in any industry and BPO is no exception.
• Set the budgets beforehand and know where and when you’re willing to negotiate. 

The Business Process Outsourcing (BPO industry) is one of the fastest-growing employment sectors worldwide, which is a testament to its ongoing success. Just like any other industry, however, BPO sometimes faces challenges. Shifting budgets, communication issues, and even world politics can have an impact on companies. We will talk about some of the top challenges in the BPO industry today and how to deal with them successfully.

1. Challenge: Cultural barriers

When you hire a global team, you will probably encounter some language and cultural barriers. Workers from other countries will speak different native languages and have their own social customs. There may also be a distinct corporate culture. When you hire a third party to work with your organization, you may find they operate slightly differently than your company. Some companies emphasize collaboration while others place more importance on efficiency. 

Solution: A good BPO company will be well-versed in the social norms, customs, and languages of the countries where talent is recruited. They will make sure the offshore workers they choose are compatible with your business and speak the same language. BPO companies are a liaison between a domestic business and its offshore workers, helping to smooth over any conflicts or misunderstandings. 

2. Challenge: Communication disruptions

Internet outages, poor phone connections, or other communication malfunctions can occur at any time and in any place. Whether the disruption happens offshore or within the BPO company or hiring organization, it can affect workflow and productivity. 

You’re likely to be working with people from different time zones. While most BPO companies have round-the-clock staffing, there may be communication delays due to certain team members not being in the same time zone.

Solution: With communication tools such as international instant messaging and video conferencing, delayed communication is a much smaller issue today than in the past. Applications such as Microsoft Teams and Google Workspace allow professional teams to collaborate instantly and seamlessly. You should outline preferred communication tools with your clients so that everyone is on the same page. While it’s impossible to prevent power failures or the occasional poor internet connection, you can have a plan in place to deal with these challenges should they arise. 

3. Challenge: Changing politics and legislation

Shifting political situations can definitely impact the BPO sector. Protests, wars, or economic turmoil may affect offshore workers and new political regimes may pass new laws that prohibit BPO in certain areas. 

Solution: It is important to stay up to date on the political situations in your clients’ and workers’ countries and regions. Understanding the laws of a particular area is crucial to ensure your business practices aren’t breaking any regulations. A reputable business attorney will assist with any questions you might have. As a BPO organization, it’s also important to be adaptable as political situations can change, resulting in new laws or regulations. 

4. Challenge: Budget constraints

Budgets can pose a problem in any industry, including BPO. If you’re a BPO company, you’re likely to work with clients who expect impressive results for a modest cost (after all, outsourcing is meant to save money for businesses). If you’re a business looking to outsource, you may find you have limited resources to allocate to BPO. Sometimes, BPO can involve start-up and recruitment costs that add to the fees for routine services. 

Solution: If you’re a BPO company, be upfront with potential clients about pricing and decide in advance whether you’re willing to negotiate. It’s also a good idea to stay updated on competitors to make sure your pricing is where you want it to be in comparison. If you’re a business in search of a BPO company, make sure you set a budget before beginning your search. This will help you to focus on companies within your financial means. 

Given the number of factors that can influence the BPO industry, companies should strive to stay agile and adapt to changing situations. The good news is that although there are specific challenges when it comes to BPO, they are usually easily solved and it remains a very lucrative and rapidly expanding sector. 

How DOXA meets the challenges of the industry

At DOXA, we know there’s no one-size-fits-all approach to BPO. We deliver solutions tailored to your business. We’ll handle the recruiting process and work to make sure quality standards are consistently met. We are constantly monitoring and optimizing productivity through state-of-the-art tools. We recruit workers from the Philippines who speak English and have similar corporate and cultural norms to American and British companies. We let you interview up to three candidates before signing a contract with us. Contact us today to discuss how we can help you with your BPO needs.