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BPO Outsourcing Trends in 2024 with Best Call Center in Karachi

SNJ Global Services – Best Call Center in Karachi

 

BPO Outsourcing Trends in 2024 with Best Call Center in Karachi

 

 

Located in DHA Karachi and at Tariq Road Karachi, SNJ Global Services is dedicated to being the best call center in Karachi. Our commitment to excellence and our strategic approach make us one of the best call centers in Karachi. Whether you are looking for a call center in DHA Karachi or a call center in Tariq Road Karachi, we are here to provide exceptional service, this makes us the best call center in Karachi.

 

If 2021 and 2022 were years of change, transformation, and tumult in the business process outsourcing (BPO) world, how do we describe 2023? Was it more of the same? And what can we expect in 2024?

 

Many found it difficult to assess how 2022 unfolded because it seemed to pass by swiftly, yielding mixed outcomes. Numerous businesses reported 2022 as a challenging year marked by uncertainty. Conversely, other companies and brands proclaimed it as their most successful year to date.

 

All of us seem busier and more preoccupied than ever. We’re running a mile a minute still dealing with the aftereffects of the pandemic — our workload, family, and life in general. So, what’s in store for 2024 in our beloved BPO industry? Let’s break down a few general trends we expect to see based on our experience. Here we go:

 

Onshore Cost Surge

Outsourcing costs in the U.S. have been steadily increasing, and we expect this trend to continue through 2024. Most U.S. BPOs are not likely to offer lower pricing for work-at-home compared to in-center operations, as the cost difference closed rapidly during and after the pandemic. Higher wage rates are the primary driver behind rising costs. According to Zip Recruiter, the average base wage for a U.S. call center worker today is $17.00 per hour, marking a 40% increase since pre-pandemic levels.

 

Staffing Challenges in the U.S.

 

During the COVID surge of 2019-21, BPOs prioritized rapidly shifting to work-at-home setups, making massive investments in remote architecture, training, systems, security, and agent collaboration tools. In 2022, BPOs redirected their focus to HR, and this trend is anticipated to persist throughout 2024 and beyond. Forward-thinking BPOs are making substantial investments in digital and social recruiting and are projected to increase investments in employee engagement and amenities.

In order to succeed in 2024, BPOs must aim to cultivate a “best-place-to-work” culture. They face competition from other BPOs and industries that offer more generous compensation packages, prompting them to raise wage rates to attract and retain talent.

 

Nearshore and Offshore Growth

 

Due to wage inflation and rising costs in the U.S., it is likely that nearshore and offshore growth will continue. More brands are adopting nearshore and offshore call centers as strategies to lower costs and tap into skilled talent pools. The nearshore region encompasses 26 countries across Latin America and the Caribbean that provide BPO services to both U.S. and international clients.

Some nearshore markets, such as Jamaica and Colombia, are currently experiencing saturation. However, saturation levels are typically cyclical and influenced by supply and demand dynamics. Most nearshore markets still maintain a relatively low saturation level and are capable of achieving high performance and scalability.

In contrast, offshore markets like the Philippines continue to face significant saturation and high turnover rates. Despite these challenges, the Philippines is expected to remain the predominant offshore destination for English-language BPO services.

 

Geographic Diversification

 

Brands will seek new BPO outsourcing markets throughout 2024 and beyond. They are looking to de-risk, diversify, and expand into regions where highly skilled talent is readily available in unsaturated markets. A diverse mix of locations often enables brands to seamlessly match customer demand with talented BPO resources.

Brands servicing customers in multiple languages will continue to search for and select BPOs that offer appropriate multilingual solutions from diverse geographic locations. As we navigate a period of global economic uncertainty, diversity will be critical for brands to maintain a competitive advantage.

For some brands, diversification means moving from traditional locations to emerging markets. Others are testing new markets against traditional ones in a champion vs. challenger format. Concerns about overconcentration in markets like the Philippines have been expressed for years, fueling the need to diversify from overreliance on traditional outsourcing destinations.

Cost surges in the U.S., saturation, and high turnover in traditional regions are also driving brands to seek emerging locations.

 

Social Impact Outsourcing

 

It is reported with happiness that the BPO industry is embracing social and purpose-driven outsourcing more than ever. 2023 is expected to be one of the biggest years on record for organizations looking to improve lives through outsourcing.

Impact sourcing is practiced as a socially conscious business approach where individuals from disadvantaged backgrounds are intentionally employed, harnessing talent from communities with persistently high unemployment and limited career options.

For example, incomes for impact workers employed by BPOs in South Africa increased by over 200% through steady employment, enabling these individuals to support three to five family members and contribute to their communities through increased discretionary spending and reductions in unemployment rates.

Impact sourcing often leads to an economically self-sufficient and loyal workforce, delivering positive outcomes in terms of performance and service delivery for brands that aim to make a positive social and financial impact in their outsourcing endeavors.

Impact sourcing is also helping to eliminate disadvantages through diversity and closing the gender gap with equal pay. According to Everest Group, the impact sourcing market currently employs 350,000 workers worldwide, with Africa employing 17% and Asia-Pacific 58%.

Recessionary Fears

 

Fears of recession and economic downturn are looming, although this is not unfamiliar territory. Sadly, some companies are downsizing, implementing layoffs, and facing reduced demand, which impacts their staffing needs. On the other hand, some companies are experiencing increased demand and higher volumes, necessitating more call center agents.

Ironically, recessions often lead to increased outsourcing as companies seek to cut costs, making outsourcing a critical strategy for improving efficiencies and managing expenses throughout 2023.

For those of us with over three decades in BPO outsourcing, we’ve witnessed the industry endure through recessions, wars, pandemics, and more, demonstrating its resilience. Even amid economic uncertainty, BPO demand typically remains stable.

Additionally, if the U.S. unemployment rate rises, it is expected that staffing challenges will ease, leading to more opportunities and job openings in call centers.

 

Cost Containment

 

Outsourcing call centers in the U.S. has become cost prohibitive for many companies. However, during 2022-23, brands that have already outsourced nearshore and offshore, benefiting from lower costs, began exerting pressure on their BPOs. Unfortunately, cost pressures on nearshore and offshore BPOs are expected to persist throughout 2024.

 

In Summary

 

The industry is approached comprehensively, involving a broad spectrum of brands ranging from Fortune 500 companies to smaller enterprises that utilize BPO services. We collaborate closely with hand-selected BPO partners operating in over 50 countries. Leaders across the industry actively engage in sharing knowledge and making forecasts based on real-world experience.

Looking ahead to 2024, there is considerable optimism and high expectations for diversification, growth, job creation, delivering exceptional customer experiences, and making significant contributions to global communities. We look forward to sharing this optimism with you!

Best wishes to all of you, your families, and your colleagues for a wonderful holiday season. May 2024 bring you success and fulfillment!

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