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What are the Challenges Faced by BPO Firms? - Asia Telecom - Blog

What are the Challenges Faced by BPO Firms?

India and Philippines have been at the frontline of the BPO services revolution and its firms have garnered an enormous market share of the BPO/Services market. In the present scenario, the domain of (BPO) Business Process Outsourcing, the countries that are competing with India & Philippines are Malaysia, Mexico and China while some of the near shoring countries like Puerto Rico, Gautemala and El Salvador are also gaining traction. These developed countries have faced several challenges just like the BPOs in India. However, the firms that operate in the BPO space in India face their own challenges as far as the execution of business is concerned. For instance, one of the foremost challenges faced by the BPO firms in India at present is the instability and the formless way in which infrastructure and logistics management are being involved. Read on for the main challenges that have been faced by BPO firms and improve the workforce intensively to promote better business.


The Main Challenges Faced By BPO Firms

The customary power outrages, poor traffic management and sometimes political instability in the form of strikes and disputes – are all factors which affect the operations of the BPO firms. It is because the sector needs to work 24/7, that it cannot afford any disruption of service. Therefore, the move by the BPO companies to campaign to the government on granting them the required services tag, so that they are not subjected to instability issues and can carry out their operations perfectly is a much needed one.

The second set of challenges deals with the increasing un-employment of the workforce. However, this is the case in which a majority of resource pool does not pass the main criteria for employment. So, BPO contact centre services are making efforts by connecting with management institutes and technology colleges to partner with the high IT/ITES advocacy bodies like NASSCOM to develop the skill set of the graduates and make them better suitable for the type of work that the BPO firms require. Bad media publicity which shows the adverse effects of working in BPOs is also one of the main challenges faced by BPO firms. Sometimes, the BPO companies cut their cost of resources or migrate to higher end work such as KPO, which also affects the workforce rapidly.

While sourcing of right candidates is a big challenge as explained above, the high attrition rate is yet another challenge which adds to disconituity, increased cost of recruitment and widens the scope of training.

To summarize, these are some of the main challenges that the BPO services in India face as far as operations are concerned. As nothing is permanent in business as well as in life, the BPO solutions in India should not be contented and strive to find solutions for the challenges and provide better services to the customers and clients.

Image Credit:  mapsofindia


Publish Date: November 13, 2015 5:00 AM

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