There is chatter in the business process outsourcing (BPO) community about softening deal flow and how much harder it is to win new contracts.
Projections indicate BPO industry growth will continue, and we’re on pace to surpass a market value of $695B by 2033. So, is it harder for all BPOs to win deals today or just the ones lagging?
Are brands sticking with current providers, or are they open to exploring options? Based on our research, it’s a bit of both—and much more.
Complaints about difficult clients and lost opportunities are legit. But many of these issues can almost always be traced back to the BPO being its own worst enemy.
Diving in further…
People buy from people, especially from likable people whom they trust.
Beyond table stakes, what is your X factor? What would motivate someone to give you or your company a serious look?
Outsourcers who stand out from the crowd usually secure the client’s interest and curiosity in the very first communication.
I always tell my BPO partners that differentiation starts the moment you say “hello.” But even before that, if you’re prospecting for new business, your identity kicks in.
Clients want solutions, not talking points. They want honesty, not sales vapor. They want authenticity, not pretense.
Too many BPOs and their salespeople cast a wide net, hoping to catch whatever they can. I cannot tell you how many BPOs, AI providers, etc., hit me up with the laziest, spammy sales pitches that usually say, “I want.”
Have you earned the right to “want” anything from someone you don’t even know? How can you make demands when you haven’t established credibility or relevance with your prospect yet?
Contrary to the adage, not everyone is a customer.
Instead of going for the jugular, invest time in finding common ground, building a relationship, and confirming there’s even a need first. And if you’re reaching out just to “network,” don’t use that as camouflage for a sales pitch.
Show decorum and respect boundaries.
Platitudes, one-liners, and the “used car salesperson” approach are anathema, yet countless salespeople still use them with impunity.
The CX community has evolved. Leaders vehemently dislike aggressive tactics and vacuous sales pitches. Leaders have no time or appetite for it. And these questionable methods only fuel negative perceptions.
Many of my colleagues and fellow CX leaders and I do not consider the entire BPO industry a commodity. But there is a commoditized segment of the BPO community with subpar operations, and people who do not invest time in building trust and likeability.
Let me reiterate that size has nothing to do with the demarcation between a leading BPO and a laggard. Yet in many sectors of the BPO community, CX and sourcing leaders and big consulting firms continue pushing the narrative that only the largest BPOs can deliver quality, scale, security, stability, and performance. I call this the “default syndrome”.
This outdated way of thinking went out of style long ago, like the BlackBerry.
A “me too” BPO differs from a hidden gem in distinct ways. Elite BPOs have strong self-awareness and deep market knowledge. They do not pine to be the largest, only the best.
They’re obsessively customer-centric, yet they will push back on the client if/when needed—and clients welcome this. CX leaders do not want BPOs that will “yes” them, then faceplant and make excuses.
Elite BPOs are selective about who they hire and which clients they want. They are flexible yet true to their culture, operating model, and success formula.
These BPOs will walk away from incompatible clients, low-ball contracts, or opportunities that don't fit perfectly. Why? Because they can afford to; their foundation is strong, they retain the clients they want, and they're not desperate.
They will not accept anything less than high-echelon standards. And when they falter on client accounts (because all BPOs do), they take ownership and resolve with expediency.
Top-tier BPOs celebrate wins with their clients, but they don’t get complacent. They work hard to become as indispensable as possible, and they rarely give their clients a reason to look elsewhere.
The word “partner” is overused in business, especially in the call center outsourcing industry.
We use the word sometimes without understanding its true meaning. Some definitions involve mutual fiduciary responsibility between the companies. Another is “A person who takes part in an undertaking with another or others, especially in a business or company with shared risks and profits."
But isn’t a BPO partner a service provider who goes beyond contractual requirements and never leaves you in doubt? A trusted, consistent performer who values the client deeply, not just in the courting phase, but long term?
Isn’t a real partner the one brand ambassador that you can’t do without?
Partner means more than just cozying up to one another. A partner is more about what you do, not what you call yourself. Too often, the platitude of partner gets thrown around when one side wants something from the other.
Partnership isn't just about what you deliver; it's how you deliver it. It's not just about the frequency of your communication; it's the style. It's knowing when and how to communicate. It's communicating enough, authentically.
It's not just about your reaction time; it's about how intelligently you solve problems, come up with innovative solutions, and communicate them.
Partnership is about building natural chemistry that you cannot manufacture.
Sometimes brands make inexplicable decisions about their BPOs and I won’t spend more time than necessary in trying to figure out the “why.” Instead, I focus on the BPO's role in a challenging situation. Sometimes it is not the BPO's fault. But often, a strained or failed relationship often stems from things the BPO could have done better.
Of many, here are just a few examples:
We can all do better at reading the room. Countless CX leaders confide in me about things that BPOs say or do that make me cringe. Some, but not all, client-facing leaders at BPOs need better training to gauge the environment and practice situational awareness. Listen before you speak and choose your words carefully. I always tell my BPOs, “Clients never forget.”
At some BPOs, blaming the client is reflexive. It is ingrained in the BPO’s DNA, thanks in large part to senior leadership that has established a culture of avoiding accountability. The lip-service script is already written, and BPO employees must toe the party line. Push back when warranted, but taking ownership of our own crap shows maturity. Not taking ownership signals arrogance.
Too often, BPOs are under the illusion that the client “loves” them, and before you know it, headcount gets reduced, or the BPO gets fired. Sometimes it’s a result of poor communication from the client. But the BPO must stay aware of its “real-time” standing with every client, because competition is fierce. Complacent BPOs get into a comfort zone and skip regular, meaningful temperature checks.
Frontline BPO leaders who fear sharing negative client sentiment or poor performance will find clever ways to obfuscate reality and spin until protracted problems are finally escalated. And by then, it is often too late. Frontline and senior leadership are to blame. And where are the checks and balances that prevent issues from being swept under the rug?
In these cases, responsibility falls on senior leaders who created a fear-based atmosphere, the enemy of honest dialogue. And when clients get pissed off or pull the business, senior leadership acts incredulous and finds ways to blame the client, even though it was always an internal BPO issue from the start.
If I hear another BPO tell me, “We’re number one,” I am going to lose it. You’re number one in what exactly? In head-to-head performance? Okay, how long have you been at the top of the client’s scorecard?
And what is your headcount compared to the other BPOs or an in-house operation? If your headcount is lower than the competition, you are technically not the best of the bunch.
If you were “number one” in the rankings but you fail in other vital aspects of the client relationship, your position is tenuous.
If the client had to invest a lot of time and resources to get you on par, you cannot claim victory.
You are going to be judged by the body of your work from day one. And if, over time, you weren't consistently in the top quartile but you're number one right before you lose headcount, or get fired, you have a lot of questions to ask yourself, not the client.
When I analyze a client-BPO relationship, I look to see whether both sides are aligned on all fronts and where any gaps are. Is the BPO prioritizing the client and delighting stakeholders consistently?
And is the client doing their part? Are they engaged and forthright with the BPO? Is there a good support mechanism in place, and are both sides communicating openly, honestly, and frequently?
If a BPO is failing at the basics such as “call center 101,” blocking and tackling, depth of leadership, but great at excuse-making, you will be left behind.
If you expect to win new business by offering a cookie-cutter, run-of-the-mill solution to a brand’s call center and CX challenges, think again.
I've said this before, and I’ll say it again: if your BPO is “AI Marketing” instead of “AI Ready,” the industry may pass you by.
Is it a buyer (client) or seller (BPO) market right now? I am not sure if we know because things are changing at lightning speed in CX and BPO. What we do know is that smart BPOs are putting a protective shield around their clients through world-class performance, making clients think twice about leaving.
What does your protective shield look like?