Emerging technologies like artificial intelligence, robotic process automation, blockchain, and cloud computing are disrupting the business process outsourcing (BPO) and IT industries. These technologies are transforming outsourcing relationships and the way companies leverage BPOs. To stay competitive, BPOs must offer new services incorporating these technologies to modernize clients' businesses, improve efficiency, and reduce costs. Adopting technologies like AI, RPA, and cloud computing allows BPOs to automate processes, upgrade solutions, and differentiate their value propositions in a rapidly evolving industry landscape.

1. How Emerging Technologies Are Disrupting The BPO & ITES Industries
It is hard to balance the needs of today while planning for the future. Companies have been
primarily outsourcing their call centre functions to save costs but the advent of Artificial
intelligence (AI) and Robotic Process Automation (RPA) has disrupted established processes.
Questions now arise such as, How will they affect the Business process outsourcing (BPO)
industry? Will these technologies be accepted? What will the effect on their outsourcing
relationships be?
For years businesses have been turning to BPOs to cut costs these IT trends are transforming
the industry. The emergence of big data, cloud computing and AI are optimizing and scaling
business processes at a rapid pace. As the highly technical BPO industry evolves, it offers a
viable alternative to cut down on overheads and additional sources of revenue. By leveraging
technology, companies are able to gain a competitive advantage and plan for the future.
Current Landscape
To grow with these changes, global IT/ITES/BPO companies are offering new services that
incorporate newer technologies. The proliferation of data has led to the emergence of BPO
analytical firms that are making use of Big Data to allow for better decision making and data
tracking. Cloud services are also allowing companies to move their operations and data storage
to the cloud and other geographical relations.
To stay contextual to the current high-tech climate, BPO companies are relying on social media
analytics to build brands and engage customers. Today’s call centre leadership faces some
hard questions in the coming year. Here are some insights into their immediate future.
Way Forward
Companies now face the dilemma of where to invest as hugely disruptive technologies like AI,
Machine Learning applications and IoT (Internet of Things) devices proliferate. They have to
decide which of these substantial costs to incur in return for substantial returns. BPO companies
can help modernise businesses through AI tools like chatbots that answer basic queries or
Video chat functionalities along with a host of more advanced tools that are beneficial for a
particular business.
Cloud Computing
By revolutionised data retrieval and sharing processes, cloud computing has become an
attractive proposition for companies looking for a competitive advantage. Offering massive
reductions in energy consumption and unused storage space, these services have reduced the
dependence of in-house servers and IT specialists. BPOs can now build solutions specific to
industries, promoting collaboration and communication between teams.
For BPOs to stay on the forefront of technology, they will have to adequately provide for a
businesses IT needs including SaaS, PaaS, and IaaS cloud computing technologies. By
adopting these technologies, BPOs can increase service deliverability and are useful in a
number of verticals such as business analytics, process automation software and cloud
computing. All while keeping costs affordable and economical.
Automation
Robotic Process Automation (RPA) has improved efficiency in the BPO sector, automating
repetitive software tasks that were undertaken by BPO services in the past, leading to an

2. immensely productive virtual workforce growing at a dramatic rate. By offering increases in
speed and efficiency at lower costs, RPA is making its way into many myriad business
processes.
The easiness of implementing RPA is a huge point in its favour as it does not have complex or
costly integration or side effects. All of this while offering BPOs a chance to upgrade their
processes at a very low cost. Additionally, it allows them to have smaller teams and reach out to
forward thinking clients for customisable solutions. Once side effect of adopting automation
tools is the chance of going in for restructuring and declines in the BPO industry workforce.
BPOs are working hard to offer automation services to companies but competition in this field is
fierce given the creation of internal RPA capabilities. For BPOs to offer an attractive deal, they
need to be cost effective enough for companies to rely on them as they continue to innovate
and automate more processes.
Artificial intelligence
Artificial intelligence (AI) or machine intelligence now flows through every industry that seeks to
automate or optimise their processes and activities. Its proliferation has led to a shift in labour
costs and sourcing patterns and is shaking up the BPO industry. While repetitive, low-value or
labour intensive tasks were previously outsourced to BPOs, businesses are now giving those
same tasks over to machines. It makes sense for companies to build their own artificial
intelligence capabilities to act as force multipliers for their existing workforces. This change
means that BPOs will have to change their value proposition to stay relevant. By incorporating
machine learning tools, BPOs can differentiate themselves by offering advanced automation
services.
Blockchain
Particularly disruptive for the finance industry, the arrival of blockchain could change how we
handle transactions forever. Banks and other financial institutions are testing ways to harness
the benefits of blockchain and make use of the technologies. The technology can also be used
to monitor delivery and usage of equipment along with managing SLAs more efficiently. As it
evolves, IT outsourcing companies will continue to experiment with and find ways to utilise it.
Impact
The advancement of technology has left a lasting impact of the BPO industry. Alongside the
advancement in technology, client requirements and expectations have changed too. Not only
do they look out for ways to save money, companies are also looking at the value outsourcing
offers. With multiple BPOs offering their services, competition is stiff and BPOs that correctly
analyse and adopt new technologies have a distinct advantage. For BPOs to thrive in this fast-
changing world, it is instrumental they grow and embrace the current technology trends.