Outsourcing means out business processes to a third party either domestic or offshore. The BPO industry is growing fast as it provides lots of advantages to companies. At the same time, there are certain challenges that they have to face regularly. Following are the challenges faced by the BPO industry today.
Changing political conditions
Political situations in America and Europe can have a huge impact on the BPO industry. Falling economies, protests, etc. can force the government to pass bills that prevent outsourcing to other countries. So, the BPO companies can be affected negatively.
Budget is one of the major challenges faced by the BPO industry. Outsourcing companies are under constant pressure to produce best results with minimum cost.
Most outsourcing companies are located in places with different time zones. So, people have to work in hours when they are supposed to sleep. This disrupts their biological clock and cause harm to health. This may result in reducing their efficiency drastically.
The employee attrition rate in the BPO industry is very high. The outsourcing companies cannot retain their employees for a long time and so suffer huge losses when they have to train new employees.
Poor internet connection, call traffic management, power shutdowns, etc. can cause disruption in processes. BPO companies are expected to be available all the time. So, this kind of disruption can cost a lot and affect the company’s reputation.
These challenges sometimes affect the performance of the outsourcing companies. They must think of measures to overcome these challenges to provide better service to their clients.