BPO leaders discuss future of outsourcing, Gen AI impact

MANILA, PHILIPPINES — Experts expressed optimism for the business process outsourcing (BPO) industry’s future despite recent developments in artificial intelligence (AI).
At the AWS BPO & Contact Center Technology Forum, panelists converged in a discussion about the BPO industry’s present and future state, focusing on how technological advancements and artificial intelligence (AI) are transforming Small and Medium-sized Enterprises (SMEs) and global customer support.
Derek Gallimore, Founder & CEO of Outsource Accelerator, opened the dialogue by noting how SMEs were primarily seeking staffing solutions. Gallimore highlighted the critical role of technology in facilitating remote staffing needs.
“It’s mostly sort of a staffing requirement… we’re over the other side of the world and these processes now are largely working on technical rails,” he said.
The CEO of Local Measure, Jonathan Barouch, cautioned against perceiving SMEs as small operations. He noted that what some define as SMEs could present substantial outsourcing opportunities, with some being “very, very large opportunities.”
The conversation shifted towards HSN Philippines, where General Manager Dio Vasquez outlined the company’s technological evolution. HSN, a subsidiary of Acer Group, transitioned from an old telephony system to an innovative solution powered by Amazon, leading to increased flexibility and significant cost savings.
When asked about generative AI’s implications, Gallimore suggested that while AI’s arrival is imminent, humans would still be essential. “No technology so far has actually dropped the requirement for employees and employment. And hopefully AI won’t do that,” Gallimore said.
Barouch echoed this sentiment, highlighting the significant transformation that AI promises for the industry. However, he cautioned about the rapid deployment of AI, stating, “The considerations that you have to think of when you open up this technology to end consumers are immense.”
From the perspective of a BPO practitioner, Vasquez shared that while HSN was exploring AI for basic support functionality, complex issues still required a human touch. He also noted customers’ preference for human agents when dealing with complex tech issues.
Looking ahead, the panelists remained optimistic about the BPO industry’s future. “The whole world benefits from this technology,” concluded Gallimore, adding that employing people globally has become increasingly frictionless due to technological advancements.
Barouch refrained from making a definitive prediction about the industry’s future but cited the trend of predictive customer service. “Rather than sitting there waiting for the phones to ring or email to come in, how do you use intelligence, data, IoT to predict into an outbound communication to a customer so that the service interaction never happens,” he said.