What are the Ongoing Challenges in a BPO Industry?

Business Process Outsourcing (BPO) characterizes the industry that offers services to a host or the parent company. It is a structure of outsourcing whereby operation or the functional component and accountability of certain business functions are maintained through a contract with an intermediary service provider.

One of the key challenges confronted by BPOs is the “high attrition rate” in respect of the general market. There are a number of reasons for this, counting from a payment structure that is not competitive when weighed against the rest of the profession. The uneven pay structure of a BPO is quite diminutive and sometimes fails to allow managers to generate incentive programs to promote staff retention. Variable pay is mostly dependent on the performance of a worker.

Ongoing Challenges in BPO Industry

Training and development of BPO staff create a challenge in respect of isolated settings, cultural and language disparities, and budget insufficiency. Training consultancies are often hired in different geographical areas that fetch and invite their own share of crisis associated with the delegation and arrangement of training. The logistics for assemble training necessitates substantial time, resources and overheads. “Budget inadequacy” is frequently responsible for creating a bottleneck for successful training and growth of staff. On account of language differentiations, training need to be localized for different languages. There is tough resistance from the developed countries against the augment in outsourcing to different developing countries, and the immediate outcome of the recent European economies that are still struggling with recession and unemployment. The big bosses of the developed countries are apprehensive of the mounting BPO industry in developing countries that is one of the causes for the increasing unemployment rates in their home countries. As those employees have to work mostly in the night shifts with long hours at a stretch and they need their high targets to be attained within the deadlines, they often fall prey to terrific pressure and stress associated with the service.

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