• By quade
• 14 August 2024

BPO Services Can Help Businesses Survive During Economic Hardship

The South African economy continues to suffer from multiple issues including a shrinking GDP, high inflation, and higher interest rates. Many of these CEOs have cited inflation and volatility in the country. This is why they have turned to BPO services as a way to reduce costs and place the risk elsewhere.

They believe that this can also help with AI adoption as this level remains low among CEOs at around 35%. By outsourcing these tasks, it can give businesses a taste of what AI looks like with minimal risk as the BPOs will be handling most of the work.

BPO Services To Boost the South African Economy At Minimal Risk

According to Heide de Lange, Head of Operations at MVIA Insure, South Africa can become a major player in the BPO service industry thanks to its large pool of English speakers. The BPO industry is set to reach $1.9 billion and will create countless jobs. This makes it attractive for foreign investors who want a piece of that pie or who want easy access to labor and new technologies. 

“While these gains bode well for the country’s economy, local businesses can also reap the benefits of the global trend by taking advantage of BPO services provided by South African providers.”

-Heide de Lange, Head of Operations at MVIA Insure

BPO services can be a huge help for businesses feeling the economic pressure. This allows them to survive by delegating critical tasks to other companies. This reduces the number of employees necessary while still being able to provide these services.

“Delegating non-core functions to external providers can yield substantial cost reductions by streamlining operations and eliminating the need for additional investment in in-house infrastructure, tools and technologies. At the same time, it frees up internal resources, allowing businesses to focus on core competencies and strategic growth-driving initiatives.”

-Heide de Lange, Head of Operations at MVIA Insure

De Lange recommends that businesses, in addition to the usual practice of outsourcing IT, tax, and HR functions, should consider outsourcing administrative tasks such as customer care, procedure management, and payment services.

“Expanding the scope of outsourcing can offer businesses new capabilities and growth opportunities. Research indicates that one in four companies utilizing this approach experience revenue growth of over 10%, while 56% gain access to new value-adding competencies. By strategically reevaluating what tasks remain in-house and what can be outsourced, businesses can enhance both their top-line growth and bottom-line performance.”

-Heide de Lange, Head of Operations at MVIA Insure

Benefits of Using BPO Services

Heide has been an enthusiastic supporter of BPO services especially in customer service. She believes that they play an important role in the process by taking the task off businesses and letting them focus on other activities. This delegation maximizes efficiency across all levels since different groups only need to think about their immediate tasks. 

But with outsourcing, you are not giving these tasks to amateurs. BPO services usually employ the most qualified and experienced workers who have worked in the industry for a long time. Many of them know the best practices and are aware of the latest developers in the industry. That includes new technology, ideas, and strategies. 

“Challenging and unpredictable market conditions demand new approaches. In these stormy economic seas, outsourcing is the compass guiding South African businesses towards a prosperous future,” she asserts. “By partnering with reputable outsourcing providers, companies can concentrate on core competencies while harnessing external expertise to navigate challenges and capitalise on emerging opportunities. Outsourcing is evolving rapidly with the rise of nearshoring, cloud-based solutions, and automation. By staying abreast of these developments, businesses can make strategic outsourcing decisions that drive long-term success,”

-Heide de Lange, Head of Operations at MVIA Insure,

How Can BPOs Benefit From This Trend?

BPO services stand to gain significantly from the expanding trend of outsourcing beyond traditional areas like IT, tax, and HR. By positioning themselves as strategic partners, they can become the go-to place for businesses looking to minimize the impact of recessions and economic downturns.

This comes in the form of leveraging their expertise and technological capabilities of different tasks. Not only does that make them more desirable, it might get investors to place more money on outsourcing services, further enhancing what BPO services can do.

This trend will open more doors for BPO providers who can enjoy more clients and learn to handle more services, enhancing customer satisfaction and increasing their competitiveness.