BPO Trends for 2021 and The Expectations for 2022

BPO Services in Bangladesh

We collaborate with a huge number of businesses and BPOs who use outsourced contact center services. We regularly lean in and solicit feedback. And also we’ll try to cover at least a few of the most significant trends. Although catalysts in 2021 as well as what to watch for in 2022.

The Long-term Effects of Working From Home

Everyone is aware that the COVID-19 outbreak pushed the BPO sector into uncharted waters. The transition to WAH was very simple for many BPOs, but less so for others. Even in a hybrid in-center/WAH staffing arrangement, many individuals still have trouble establishing themselves.

Our industry emphasized the “coolness” of a virtual workforce to recruit talent when we switched to WAH for call centers. Of course, having a distributed, flexible call center crew that can work from “anywhere” has several benefits. A few of these are:

1. Flexible scheduling for agents, better work-life balance
2. Better business continuity and emergency planning
3. Access to a larger skill pool of Americans
4. Zero commute means a less carbon footprint.
5. Increased retention and engagement of employees

Brands and BPOs need to establish the best formula based on “real-world” expectations, not preconceptions. As we go to 2022 and beyond. WAH and COVID-19 are still in use today, as is the traditional call center model. Trend lines in several industries suggest an increase in demand for a return to in-center in 2022, but this is just speculation.

The cost of living is skyrocketing

In my more than 30 years working in the call center industry, 2021 saw the most pronounced pricing rises in the U.S. (onshore) BPO sector. Brands that depend on third-party BPO services were most affected because labor costs make up more than two-thirds of BPO operating costs.

Based on our statistics, the rise in productive hourly rates in the US over the previous five years is as follows:

1. 2017-2018: $27.00 – $28.00
2. 2019: $29.00 – $30.00
3. 2020: $29.00 – $32.00
4. 2021: $34.50 – $39.00

The price ranges mentioned above apply to mid-level to complicated BPO services.

BPOs used to hire agents for $10–$12 an hour only a few years ago.

The average agent salary now is $16.00, or $32,625 annually. In order to compete with other BPOs and firms like Amazon, which pays starting rates of $18 plus sign-on bonuses. BPOs nowadays must pay between $15 and $17 per hour as a minimum.

If a brand wants high-quality services in 2021, 2022, and probably beyond. It could expect to pay a productive hourly rate in the mid- to high $30s for onshore U.S. BPO services. Expect the following to start appearing in BPO contracts in 2022 and beyond in addition to greater productive rates:

1. Productive hourly rates versus staff hourly rate bids
2. Supervisory and other support personnel compensation
3. Increased living expenses
4. Training costs for backfill and attrition
5. Models for variable compensation
6. A pay increase for staffing in-center agents

Additionally, it should be noted that there will always be a subset of BPOs willing to “purchase” a brand’s business at unsustainable below-market prices, but is this risk to your image worth it?

Challenges in Hiring and Attrition: A Permanent Problem?

Despite the rise of global outsourcing, the $25 billion call center sector in the US employs close to 500,000 people. In reality, 2021 showed us that there is still a long way to go before hiring improves. Therefor it is highly likely that staffing issues will last until 2022 and beyond.

I believe it is important to ask: isn’t WAH meant to be the answer to the problems with hiring, retention, and turnover? It turns out that no. In reality, a large number of companies and BPOs have informed us that the possibility of working remotely may be a factor in the drop in candidate quality. Why?

Investments in People and HR in 2022

If they haven’t done, BPOs and internal call center operations in the United States should invest extensively in HR by 2022. Digital and social recruiting techniques, as well as intelligent hiring and retention strategies, will be crucial. Corporate Social Responsibility (CSR) hiring is crucial for businesses that prioritize purpose-driven business strategies.

Successful operations prioritize the “human” component above all else and strive for the best “people performance.” This also holds true for leaders. As your operation is only as effective as your agents and the leaders that guide them. Both agents and front-line leaders are affected by turnover and burnout.

Increased Demand for Offshore and Nearshore

Let’s face it, a call center job is still seen as a last resort in many industries here in the United States. In contrast, a call center job is typically regarded as a path forward, a profession. And an aspiration in nearshore and offshore countries. The demand for outsourcing outside of the United States significantly increased in 2021. Also this trend will persist through 2022 and beyond.

So, What’s The Next Step?

We saw the rise of brands using meticulous due diligence procedures to discover and pick their BPO partners in 2021. We salute you for doing this. Selectiveness in the selection of your BPO partners can and ought to result in better results for the brand and BPO. The majority of the brands or “customers” we work with are looking for proactive. As well as flexible, value-added partnerships rather than merely “people in chairs” or commodity BPOs.

Since the challenging days of 2020, we have come a long way, accomplished a lot in 2021. And anticipate more obstacles in 2022. Let’s continue to aim for world-class because our sector is robust and the future is promising!