The Bane Of Bpo Costs

The BPO industry is going through a transition phase

. There is a conscious shift in paradigm and outlook. The call center units across the world are moving towards business models that are high on quality as opposed to just low cost. Business process outsourcing traditionally stands for cost-effective ways of getting work done. With more business firms choosing to have quality work rather than one that adds less to the expenditure ledger, call centers have to think over their way of conducting projects. They will need better technology and work skills to exploit the newly-added software features. That would mean investment and they will need finances to cover that. At the same time, the telemarketing units are presented with the thankless task of keeping their price tags low! After all, shooting up prices will mean that they run themselves out of the competition.

In such a Catch 22 situation, the BPO companies are looking for options. Its a given that they will have to deliver better quality work. That is the only way by which they can stay on in the competition. Telemarketing services that cannot match up to certain standards will have a tough time getting projects onboard. The improvement in quality is just one of the parameters. There is a strong dislike for unwanted telemarketing calls and sloppy customer service departments. No client would want their inbound call center support to squander away the incoming calls that they get. Every call is like a business opportunity. The call center agents are expected to make the most of every one of them. A lackadaisical attitude to handling these aspects will not go down well with the clients.

Lets move to the cost factor now. There is a standard price tag on call center services. A BPO can move around it but it cannot ignore it totally. When the cost of production shoots up, there is a pressure to hike the price tag to compensate for the cost difference. However, telemarketing units cannot do that because that would mean that they are quoting prices that are way higher than their rivals. Clients would any day choose to work with a call center that has better quality work to offer and also goes low on the cost factor. From the perspective of the outsourcing firm, lower price tags would mean a dip in the profit margins, but they dont really have a choice.

Call centers of the third world countries paid heavily for having cheap manpower and technology. If you study the present BPO trends across the world, a telemarketing giant like India was toppled from the top spot by the Philippines, primarily on the strength of being a quality provider of call center services. The rise of Filipino telemarketing services places the finger on the raw pulse: unless you deliver quality, you are delivering nothing. The present outsourcing model may take a while to grow and adapt, but the cost factor remains a prime worry for call center experts as we move into a new decade.

by: Jems Hug

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