Looking back three or four years, few would have been able to predict the lucrative new opportunities which have recently emerged for business process outsourcers (BPOs). However, with the benefit of hindsight, we can now see how the COVID-19 pandemic set the stage by dramatically accelerating the rise of CX and the extensive digital transformations that have occurred (and will yet occur) to meet today’s customer expectations. Exactly what are these exciting opportunities, how did we get here and what is the best path forward?
The perfect storm
The pandemic created a perfect storm that served to catalyze unprecedented change. As commerce went into lockdown, homebound consumers still needed many of the goods and services they were accustomed to (maybe even more urgently than ever before). However, businesses suddenly faced the novel challenge of responding with a workforce that was also largely homebound. This dichotomic convulsion lit the spark for the extraordinary changes that followed, and which are still propelling us forward. Seemingly overnight, the old playbook for how business was done was no longer relevant. Out of necessity a new playbook was written.
While difficult, consumers, employees and businesses emerged. But it soon became clear that things would never be the same. There was no going back. Customers liked the new online conveniences which businesses hurriedly implemented. Employees liked working from home. And businesses learned that they could thrive without the old playbook. This is the new normal.
Perhaps simplistic, this helps explain the trends we observe today, which are:
Digitalization
Digitalization has found expression in two ways. First, is with the move to cloud (aka cloud 1.0). Cloud adoption has not only accelerated, but today we are already on the cusp of an emerging cloud 3.0 movement. If cloud 1.0 was en masse adoption of a cloud infrastructure and core services, then Cloud 3.0 is about utilizing multiple clouds for specialized, solution-centric services. These specialized clouds make it as easy to build and integrate new business solutions as it is to build a new toy by stacking together the right Lego pieces.
Second is the breathtaking rise of the digital-first consumer. This is a new consumer cohort who is fully immersed in, fluent with, and preferentially loyal to, all things digital as fully enabled by pervasive smart devices. They would rather browse online than visit a store, chat rather than talk by phone, or self-service rather than wait for someone to help them.
This new digital first customer is unquestionably the force behind many of the CX changes that brands are implementing.
Transformation
Businesses are now placing a newfound focus on digital transformation—the modernization of technologies and work processes. The road to digital transformation was paved by cloud computing and is fueled by the competitive need to increase performance, drive down costs, and create clear differentiation with customers.
AI, automation, and analytics are leading many of the transformation initiatives. With an abundance of data, sophisticated analytics can now pinpoint where improvements must be made, and automation makes it much easier to improve work processes more efficaciously. As a result, business can become more productive and innovate more quickly—something that is required to please demanding digital-first customers.
Workforce utilization
The acquisition and utilization of labor is also experiencing transformational change. As the ratio of customer-to-brand interactions becomes increasingly digital (asynchronous) and self-service (automated), the demand for, and availability of skilled workforce labor also changes. In addition, cloud computing has effectively erased many geographical boundaries making it possible to competitively source labor from nearly anywhere in the world.
A new era
So, what does this mean for a BPO? Looking at interaction volume, many customer interactions are: 1) designed as an integral part a larger and more carefully orchestrated customer journey; 2) providing more self-service options; and 3) by necessity, requiring much tighter integration with client data and systems. These new realities create significant barriers to growth for legacy BPO providers who have built service models largely around volume staffing and siloed work processes. However, the most successful BPOs are discovering new, profitable ways to partner with clients by taking more end-to-end ownership for all interactions occurring during a phase of the customer journey or even for the entire customer journey. In doing so, they are becoming strategic customer experience outsourcers.
The rise of CX outsourcing
What defines a strategic customer experience outsourcer? To answer that question, we must first consider how prospective clients’ business requirements have changed. However, this is less of a discussion on what or why and more about how. The larger objective – to deliver better customer experience – has not changed. What is variable is how different client organizations prefer to deliver on their objectives.
Outsourced interactions to turnkey journeys
Clients want the flexibility to outsource parts or even potentially the entire customer journey. To deliver a solution that is just right, a CX outsourcer must satisfy four fundamental requirements. First, build and support interactions for any part of the customer journey—not just traditional support or service interactions. Second, design and manage more than legacy voice interactions. Robust omnichannel, and blended self- and live-assist interactions are now required. Third, match outsourced labor with interaction demand and skill requirements. And fourth, facilitate deeper integration with client back-office systems.
Consultative CX
Some clients will want to build and manage their own customer journeys and interactions. For these clients, CX outsourcers can help in two important ways. First, a CX outsourcer can function as a managed service provider by providing the underlying CX technology. Alternatively, a CX outsourcer can advise and even function as a systems integrator to help procure and implement the CX technology. Second, CX outsourcers have deep operational experience and can monetize that experience through various consulting engagements to help clients design and manage their own customer journeys and to maximize operational performance, efficiency, and cost savings.
An Equal Partner with CX Outsourcers
Even the most successful CX outsourcers can be more successful with the right business partner. Technology plays a vital role in CX outsourcing. Whether from outsourcing interactions or taking end-to-end ownership of entire turnkey journeys, to providing managed CX services or implementing and integrating CX solutions for a client, the right partner can make all the difference. Therefore, a CX outsourcer should look for a partner with the following qualities:
Complete technical CX portfolio
To outsource the right services, CX outsourcers must have capability, capacity, reliability, security, extensibility and integrability. Being able to get all of that from one partner is priceless. Look for a partner that not only has best-in-class digital self-service, journey orchestration, workforce engagement, AI and automation, and advanced analytics but who can also deliver everything as an API-accessible cloud service, or suite of ready-to-use applications. Also, look for a partner who has the financial strength to continue making aggressive investments to maintain market leadership.
Resell agreement options
Some clients want to be on the same platform as their strategic outsourcer. The right partner will help you monetize those opportunities with resell agreements right for your business and clients.
Training and certification
Whether you are implementing or administrating your own CX platform, or doing the same for a client, you need to act with speed and confidence. The right partner can help fully enable and support your needs with a comprehensive catalog of training and certification programs designed to turn your staff into acknowledged experts.
Support and SLAs
When you need help, you need it fast. The right partner will take steps to ensure reliability, ease of use, and offer timely support when needed.
Transition from BPO to CXO
The transition from BPO to CX outsourcer represents tremendous potential. And the need for expert CX outsourcers is strong and expected to grow even stronger. Are you ready to learn more?