Business & Services


Contracting out your company’s business operations to a foreign or domestic third party is known as outsourcing. The projected value of the worldwide BPO Company sector was over 83 billion dollars in 2013, and it has continued to grow ever since. One of the sectors with the quickest growth is the BPO market. The cost advantage, risk mitigation, increased utilization, and high competency have all combined and each contributed to the BPO industry’s enormous expansion.

The intense competition in this field and the rapid growth of the market present unique problems for the BPO management of these businesses. Customers that are extremely demanding, limited budgets, erratic work schedules, and customer satisfaction are just a few of the difficulties this industry must deal with. In this post, we’ve outlined a few of the typical problems facing the BPO industry.

Common Challenges of BPO Company

The BPO sector appears to be expanding, but that isn’t necessarily the case. When working in the BPO sector, top management must overcome numerous obstacles and think of solutions on a daily basis. Here is a summary of some typical issues the BPO sector encounters:

#1. Changing Political Scenarios

Political conditions in certain parts of America and Europe can have a significant impact on the BPO sector. War, economic collapse, and other factors may compel governments to enact legislation that forbids outsourcing to foreign nations. This might have a significant impact on BPO firms.

#2. Exceeding Customer Expectations

For all BPO organizations, ensuring 100% client satisfaction has always been a challenge. Customer expectations have skyrocketed as a result of numerous social media platforms and increased market competition, which presents a significant challenge for the BPO sector.

#3. Shoestring Budgets

The budget is one of the biggest problems the BPO sector is currently facing. Most of the time, customers want outsourcing companies to deliver the greatest results at the lowest possible cost. They are compelled to make the most of their scarce resources.

#4. Health Concerns

Since the majority of outsourcing businesses are located in places with multiple time zones, their resources could be available at all hours of the day. The personnel may experience serious health issues as a result, which would significantly lower their productivity. By assisting with reputation management, automatically choosing appropriate patients for reviews, and evaluating your practise against national standards, unique opportunities to display your Free Practice Management Software are made evident.

#5. Customer Attrition

The client might simply decide to cancel the agreement at some time during the project and give the work to your rival for various reasons. The cost of such an abrupt business termination can be extremely high and can significantly impact most BPO companies.

#6. Scarcity of Talent

Finding the correct talented people to work in the sector is one of the biggest hurdles in BPO recruitment. Only a small percentage of graduates are genuinely qualified and prepared to work in the BPO industry, according to a recent survey.

#7. Employee Attrition

It is noteworthy that the BPO sector has a high rate of employee attrition. Companies experience significant losses every time they need to train a new employee because they are unable to persuadably keep their workers for an extended period of time. Once more, it takes time and money to hire a new employee and train them for the position.

#8. Communication Channels

Over the past ten years, a significant growth in the number of communication channels has occurred. In addition to the typical calls and emails, people now use social media platforms to communicate. Choosing which channel to focus on when communicating with their clients proves to be fairly difficult for BPO organizations.

#9. Frequent Disruptions

Call traffic management, poor internet connection, unclear phone lines, power shutdowns etc. may result in disrupting the various processes. BPO companies usually work in 24/7 schedule and are expected to be available at all times. Such disruptions can cost the companies a lot and can be very challenging to the industry.

#10. Brand Equity

The HR professional’s responsibility includes developing brands. One of the frequent difficulties faced by HR managers is this. When they depart the company, they are the company’s brand ambassadors since they are supposed to provide proper training and a pleasant working environment. Negative word-of-mouth can readily result from disgruntled staff, which can lower brand equity.

Choose Flatworld Solutions for Any Kind of BPO Requirement

For more than 17 years, Flatworld Solutions has offered a variety of BPO services to clients all over the world. You will receive assistance from our highly skilled company leaders throughout the outsourcing process. Call centre, finance and accounting, data entry, software development, creative design, photo editing, healthcare BPO services, engineering, research and analysis, mortgage services, and other services are among the many services we offer. We are able to comprehend our clients’ business models and cater our services accordingly thanks to our extensive experience working with clients from a variety of backgrounds.

Despite the fact that there are hundreds of BPO companies in the United States, only a small number have positioned themselves as major players due to the aforementioned difficulties. All BPO market participants should think about examining existing BPO companies more closely and trying to determine what business practices have helped these organizations succeed. The majority of these elements have a part in how challenging it is to innovate in the BPO sector. However, there is a good chance that the situation will get better as competition increases and the lines between IT and ITES become more hazy.

Tim Kidd

BPO businesses offer technical, legal, and marketing services to help vendors build a competitive reputation that will attract more clients and bring in money to support their growth both financially and professionally.

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