Is Automation a Threat to the BPO Industry?

is automation threat bpo industry?

The Business Process Outsourcing (BPO) industry in the Philippines employed 1.3 million professionals and generated $25 billion in revenues last year. It is expected that by 2022, the Philippines’ BPO sector will generate revenues of $40 billion and account for 15 percent of the outsourcing market in the world.

However, the past few years have seen robotic process automation (RPA) and other automation technologies emerge—putting 89 percent of the BPO sector at risk, according to the International Labor Organization. As RPA technologies become increasingly advanced and widely used, processes that were once outsourced now require less human intervention.

Integrating Automation in BPO Services

Some may argue that utilising RPA is more cost-effective, faster, and more efficient, but is automation really a risk to BPO jobs?

Rather than seeing it as a threat, BPO companies should use these automation capabilities and digital technology to boost their efficiency and further encourage the adoption of outsourcing by companies. By integrating automation technologies in their solutions, BPO firms will be able to improve operational efficiencies, boost business agility, and enhance client engagement as well.

For instance, outsourcing service providers can automate decision making in certain mid to back office functions. This includes identifying opportunities for upselling and cross-selling, eligibility for loans, and risk assessments.

How BPOs Can Stay Relevant


business outsourcing - woman working remotely

1. Focus on helping employees gain highly specialized skills.

By providing trainings to employees and helping them gain highly specialized skills, you will be able to support them in climbing up the value chain and take on more advanced positions. Also, you can train your employees to operate these automation technologies and ultimately deliver higher-value services.

2. Obtain deep knowledge on certain industry areas and show confidence in service delivery.

BPO companies which possess an in-depth knowledge on specific areas will still be in demand despite this new trend, as these service providers can add significant value to businesses. Moreover, because they have areas of expertise, they can demonstrate their confidence in delivering the desired outcomes.

3. Stay innovative.

By delivering technology-enabled services and showing excellent technology capability will help BPOs adapt to the changing times. Direct Sourcing Solutions prides itself as outsourcing innovators which provide metrics-driven technology-enabled solutions.

Final Thoughts

It is no secret that there is an ongoing shift in the BPO industry and automation technologies are starting to play a more significant role in various industries. Hence, it is important to choose a BPO company which is already playing the game by the new rules. By working with Direct Sourcing Solutions, you will get to enjoy the benefits of technology-enabled services which are tailored specifically to your business requirements. Contact us today and partner with the outsourcing innovators!

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