As more work moves online, businesses need tools that support it.
Many industries are testing new tools. They want to find out which ones improve their work and how to fit them into daily use.
Artificial intelligence (AI), machine learning and cloud services are part of this change. Each offers ways to help teams work more efficiently.
A report by Deloitte, a professional services network based in the UK, found that 56% of businesses said cloud tools helped them cut operating costs.
Business process outsourcing (BPO) is one sector making use of these tools.
They can automate tasks and help BPO firms serve more clients around the world.
What could cloud-based BPO mean for the future of outsourcing? This article looks at its uses and benefits in telecoms and technology.
Understanding Cloud-Based BPO
Cloud-based BPO means using cloud platforms to deliver outsourced business work. These platforms can include customer relationship management (CRM) tools, help desks and ticket systems.
Examples of the software used include Zendesk, Webex, Zoho Desk, LiveAgent, TalkDesk, GoToConnect, NICE CXone, Bitrix24, Dialpad, Five9 and CallHippo.
Cloud systems can combine AI and machine learning with services that grow or shrink as a business needs them.
Amazon Web Services is a major cloud provider. It has pointed to the ease of scaling up or down as a key reason firms choose its service.
IDC forecast that, by the end of 2021, 90% of global enterprises would rely more on a mix of systems. That mix included on-site systems, dedicated private clouds, public clouds and older platforms. Together, they would meet firms’ IT needs.
The Advantages of Cloud-Based BPO
1. Enhanced Flexibility and Scalability
Cloud-based BPO lets firms adjust their work as demand changes. This can help telecoms and tech businesses, where needs often shift.
Teams can add capacity in busy periods and reduce it when demand falls. The Uptime Institute also reported that 74% of companies kept operating during the COVID-19 pandemic with the help of cloud systems.
2. Cost Efficiency
Cloud-based providers can help businesses cut operating costs. Traditional BPO can require a large upfront outlay on systems and equipment. Cloud services can remove the need for that outlay and free funds for other work. A Gartner report cited at the time said 75% of current BPO contracts included AI or automation. That was up from 25% in 2017.
3. Access to Cutting-Edge Technology
AI and machine learning can improve a range of BPO tasks. These tools can review large sets of data, support decisions and improve customer service. A report cited in this article expected 85% of executives to invest heavily in AI-related tools over the next three years.
4. Improved Data Security and Compliance
Cloud-based BPO providers use security controls to protect sensitive data. Their work must also meet the relevant compliance rules. These safeguards help protect private information and data integrity when work moves outside a firm. McAfee’s Cloud Adaptation and Risk report found that 52% of companies saw better security in the cloud than in their existing systems.
Telecommunications
Telecoms is a competitive field. Providers must keep changing how they work to serve more people.
Cloud-based BPO offers tools to help them keep pace.
1. Customer Support and Engagement
Cloud AI tools can help telecoms firms tailor customer support to each person. Chatbots can answer questions quickly and may improve customer satisfaction. A report cited in this article found that 57% of businesses saw AI as a way to provide more personal service.
2. Network Management
Cloud-based BPO can use data from several sources to help manage networks. It can spot patterns that signal a need for repairs and help reduce downtime. McKinsey reported that predictive maintenance using the Internet of Things (IoT) could cut costs by 10 to 40% and downtime by 50%. An Ericsson study also forecast that AI-based network management could reduce network outages by up to 15%.
3. Billing and Revenue Management
Cloud-based BPO can simplify billing and revenue management. It helps telecoms firms process large numbers of transactions quickly and accurately. This can improve financial workflows and reduce lost revenue.
Research firm Markets and Markets forecast growth in the global telecom billing and revenue management market. It projected a rise from USD 10.8 billion in 2020 to USD 18.0 billion by 2025. That implied a compound annual growth rate (CAGR) of 10.8%. The forecast linked this growth to systems that handle large volumes of data and transactions well.
Technology
Tech firms can use cloud-based BPO for software work, technical support and data management. These are several ways to gain outside IT skills.
1. Software Development and Maintenance
Specialist providers can build and maintain software for tech firms. In-house teams can then focus on new ideas and bring products to market sooner.
A report put IT outsourcing spending at about $413.7 billion in 2020. This included software development and maintenance. The report linked outsourcing with greater flexibility and lower costs.
2. Quality Assurance and Testing
Providers can also use AI to automate software testing. More thorough quality checks can help teams deliver stronger products in less time.
Capgemini’s World Quality Report 2020–21 described AI’s growing role in quality assurance (QA) and testing. In that report, 86% of respondents expected AI to play a major role within the next 2–3 years. Cloud-based BPO providers were among those offering AI-based testing services.
3. Big Data Analysis
AI and machine learning can help tech firms make use of large data sets. They can reveal patterns in user behavior, preferences and market trends. Firms can use these findings to guide decisions.
IDC forecast that global data volume would rise from 33 zettabytes (ZB) in 2018 to 175 ZB by 2025. More data creates demand for better ways to analyze it. Cloud-based BPO firms are adding AI and machine learning to their services to help clients make use of that data.
Conclusion
Cloud-based BPO is changing how firms work, including those in telecoms and technology.
AI, machine learning and cloud tools bring new options to traditional BPO. They can help teams work more efficiently and adapt their capacity as needs change.
Data analysis tools give BPO teams more evidence to use when making decisions.
These tools can help firms cut operating costs, improve data security and serve customers better. Those gains may help a business compete.
Cloud-based BPO can also support firms that want to develop new products and services. Software development, quality checks and data analysis all offer opportunities. Outside support can help teams work faster and bring products to market sooner.
Before moving fully to cloud-based BPO, assess your needs. Review the resources you have and your business goals. A major change in how you work needs a clear reason.
The aim should be to help the business grow, adapt and develop new ideas. Changing a model that already works could otherwise make things worse.