Monday, January 27, 2014

Ph #outsourcing industry: Low margin, high volume call processing has little future growth

The BPO industry needs to rapidly adapt if it is not to lose out to the brighter, nimbler competitors abroad as the global sector moves to value-added services, and also as customers look for KPO (Knowledge processing outsourcing), 'big data', and analytics.

Low margin, high volume call processing per se has little future growth, and is hostage to small changes in labour costs, overheads, and even currency fluctuations.

With no capital investment in the philippines( due to constitution constraints) it is very easy for foreign call centres/customers to switch contracts to another provider in another country.

Some of the more strategic thinking countries also see the provision as BPO/KPO as just one part of a holistic package they can offer to foreign investors with multiple benefits to the host country.

Cloud computing, mobile apps development, and VPN's ( virtual private networks are changing the structures of businesses and with more virtual/networked organisations, atomised profit centres etc. then the BPO industry must understand the drivers and start being ahead of the game and be problem solvers, ideas generators – and that is where there is a real skills gap in the philippines, along with archaic management styles.

(Slightly modified by editor to make fit for standalone publication)


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