The market for the outsourcing of business processes (BPO) increases at an unprecedented rate, technological progress transforms traditional BPO models to meet evolving commercial needs. As BPO service providers implement leverage technologies, such as cloud computing, robotics, data analysis, automation and traditional and generative AI, to rationalize processes and improve productivity and quality, digital transformation becomes a common component – and the point of sale – for many BPO commitments.
Technological progress resumes the BPO industry by promoting efficiency and minimizing costs. According to Technavio, the world BPO market is expected to increase by $ 88.8 billion over the next four years, with a growth rate of 6.2% in 2025 only. This growth is fueled by the promise of new and emerging technologies as well as access to alternative endowment models which offer increased flexible access to broader talents around the world.
The convergence of commercial processes services and technologies presents opportunities both for the outsourcing of customers and service providers, but like most opportunities, the challenges to be considered and to meet.
These challenges may include:
- The implementation of complex (and potentially expensive) digital transformation projects)
- Savings commitments dependent on aggressive reductions in ETT and productivity projection
- Monitoring and compliance with laws and regulations, including imports on import / export and regulations of AI and confidentiality
- Customer requirements, including the use of certain technologies
- Data use and processing restrictions
Finally, there will always be imminent concerns about data and systems violations. Given that many BPO transactions involve the processing of critical data processing at high data intensity to third -party service providers, both parties must consider the controls, response mechanisms and the correction responsibilities necessary to prepare for potential data or system violations. In addition, the continuity of activities, resilience and recovery after claim have come down during the structuring and implementation of BPO models.
Contact our team of technology and outsourcing from Morgan Lewis to discuss how companies design contracts to minimize these risks and maximize the advantages of BPO transactions.