Know the BPO Industry From In and Out: A SWOT Analysis

BPO companies have been in existence for a long time but they got their popularity a few decades ago. From the early 1990’s this industry caught up pace and began spreading its wings. In today’s date, it has become one of the most influential industries across the globe. As digitization is increasing on a rapid pace, the BPO industry is benefiting tremendously out of it. More and more companies are witnessing the aids rising from the ocean of opportunities and services being provided by this industry. Irrespective of the size of a business, BPO industry has been serving everyone equally.

BPO companies provide a wide variety of services which help companies achieve cost reductions and customer satisfaction. A SWOT analysis will basically help you get the valuable insights of this industry. It aids in identifying the crucial internal strengths and weaknesses, as well as the opportunities and threats lying externally. A comprehensive understanding would help businesses in understanding this industry better. The SWOT analysis of BPO industry is illustrated below.

SWOT Analysis:


Large no. of talented graduates:

There are no two doubts about it that a lot of young people across the globe are entering into this profession. excellent BPO companies have something for everyone. Every industry requires young and energetic people to work for it and BPO has them in abundance. This gives it an access to knowledgeable people across various studies and domains.

Language benefit:

Communication plays a pivotal role in BPO industry. Employees serving in this industry are exposed to various languages. In fact, if any company is looking to serve customers speaking a certain language then BPO companies serving in that language can be contacted. Language is vital and unlike other areas where language acts as a barrier, in this industry language is a connector.

Well-developed IT support:

Technology is crucial for organisations and it help companies in performing their tasks more efficiently. BPO companies are backed with exceptional technological support. This assists them in delivering the best of services to customers. IT support is crucial in today’s technologically advanced world and BPO industry has it in ample amounts.

Interested powerful venture capitalists:

Venture capitalists across the globe are able to foresee the ample amount of growth opportunities being offered by this industry. Venture capitalists invest in businesses and try to reap out maximum returns out of it. BPO industry is a mine of opportunities which can offer tremendous positive results to investors. As a result, bigshot investors are ready to devote huge sum of money in this industry. This has increased the flow of money in BPO industry.


Scarcity of foreign languages:

One of the major restrictions is that apart from the language prevalent in a certain geographical region and English, there are hardly any languages which call centres are offering. Language is the basis of communication and services are being offered in certain languages only. Availability of foreign languages is a big drawback of this industry.

Poor quality telecom and electricity infrastructure:

Mostly the developing nations are offering BPO services. Maintaining telecom and other supportive infrastructure is a costly affair and most of the companies aren’t equipped with best facilities and support functions. Government issues and unavailability of suitable infrastructure is a major shortcoming.

Cultural differences:

Mostly firms outsource their BPO functions to companies based in different geographical locations. This brings cultural differences which are hard to reduce. Customers are able to sense it at times. These differences restrict BPO companies in delivering world class services to clients.

High attrition rates:

Attrition rate is one of the biggest issues of this industry. Knowledgeable and skilled people hardly stay in this sector. Due to this there is a dearth of experienced professionals.


Time zone difference:

This difference is offering major advantages in business context to BPO companies. As organisations want to operate 24×7 but are unable to do so in-house, hence they prefer institutes offering outsourcing services in a different time zone.

Increasing awareness of outsourcing services:

With the rapid expansion of this industry, most of the companies are becoming more knowledgeable about BPO services and are preferring them. The increased awareness is helping BPO companies in gaining more and more clients.


Political instability:

The internal governing politics is centric to a country. The impacts of political instability might have their repercussions on clients even if they belong to a different country.

Increasing technology automation:

Most of the jobs are being automated. There is a huge threat that the work of call centres might also get mechanized in the coming times.

The elements mentioned above hold a critical place in the BPO industry. A thorough knowledge of these would surely help businesses in developing a greater and better understanding of this industry which would be of immense help in strategizing further.


Leave a Reply