Is new technology an opportunity or a threat for BPOs?

An interesting post from Karl Flinders today: How is technology changing BPO?

Karl outlines a range of technologies that are revolutionising the BPO sector and enabling BPOs to deliver new services to their clients more economically. So, the CIO of a BPO is in a powerful position, and the client is happy to benefit from reduced costs?

I am tempted to take the argument a stage further.

The “perfect storm” that Karl describes “as customers want to cut additional back office costs due to continued budget pressure, and at the same time suppliers are trying to create additional services and the revenues that go with them” could drive a new type of behaviour. New technologies “such as cloud computing, business analytics software, social media platforms and process automation software” are so easy to adopt, perhaps the corporate customer’s CIO will work out how to insource the work at the expense of the BPO contract.

Add to the mix political pressure (especially in the US) to repatriate offshored jobs, and the perfect storm could be very windy indeed.

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