BPO leaders at CXO 2025 emphasize innovation over cost savings
MUNICH, GERMANY — The global business process outsourcing (BPO) industry is undergoing a seismic shift as buyer priorities evolve beyond cost-cutting to capability and innovation.
At CXOutsourcers (CXO) 2025 in Munich, industry leaders gathered to debate these changes, with discussions highlighting Africa’s rising potential, AI’s uncertain impact, and the risks of supplier consolidation.
Shift from cost-cutting to value creation
Buyers in the customer experience (CX) space are no longer solely focused on cost reduction, instead prioritizing capability, innovation, and cultural alignment.
At the CXO 2025 event, the speakers discussed how companies now recognize that CX creates value, rather than just adding costs. Now, suppliers should try to create different offerings that increase customer engagement instead of only providing lower prices.
BPO companies were also paying more attention to political situations and emerging markets, with Africa being spotted as a prime location for growth. According to David Rumble of The Knowledge Group, Africa’s many talented people, strong scalability, and promising future make the region crucial for global outsourcing plans.
This shift underscores the need for suppliers to rethink traditional delivery models and invest in high-value, future-ready solutions.
AI, supplier consolidation pose opportunities and risks
The rise of AI dominated debates, with opinions split on whether automation will enhance or replace human agents.
There is not much agreement on what to expect from AI, and it’s not clear how quickly it will transform customer experience. In addition, many buyers now opt for larger BPO firms because they think these companies are reliable and advanced in technology.
This trend, however, may reduce opportunities for smaller or nimble companies to use their specialist knowledge.
The discussion panel advised suppliers not to drop their prices too far and instead tune their values to the actual needs of their customers. As the industry evolves, collaboration—not just consolidation—will be key to sustainable growth.
