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Cloud and BPO – a perfect match.

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Cloud and BPO – a perfect match.

It’s quite easy to notice the synergies between cloud computing and BPO.

Customers around the globe acknowledge the benefits of cloud based solutions and are aware of the competitive advantage those provide. Many enterprises are pushing for transitioning to a cloud-based environment.

This solution is mostly praised by small and mid-sized businesses, it provides a big cost reduction since there is no need to maintain complex in-house systems that require frequent upgrades and support..

This new level of flexibility a cloud-based environment provides is not only faster but more efficient with resource utilization; your company will have even greater control over IT spending than ever before.

It’s no wonder that BPO and Cloud go so well together since both offer agility, scalability, reliability and cost reduction.

Traditionally, the BPO service provider maintains a large data center infrastructure with all the technology to run the customer’s business processes. However, if the service provider has his infrastructure in the cloud, it can make it available at a much lower cost. That can even open the possibility of offering business processes from day one, thanks to utilizing shared platforms, applications and sometimes whole infrastructures to transform their customers’ business processes.

Cloud’s advantages

The greatest benefit is the coming of the virtual shared service center. The virtual center support staffs remain in their offices but work together online in a standardized way.

Other advantages:

  • Cost reductions for the client:
    • Hosting standard applications. No need to host these applications individually, since cloud BPO providers host them for their clients.
    • Offload capital expenses and move to an operational expense model
    • Control over expenses and operational costs, providers offer most of these services as a pay-per-use.
    • Utilization. Providers are able to achieve a higher utilization by balancing differing timeliness and work peaks.
    • Reduced need for a disaster recovery plan. Cloud connectivity is a built in disaster recovery measure.
  • Standardized: BPO providers have optimized their processes. They also have access to the latest platforms and newest technology. Clients can access these at a much lower cost than if they had to develop them in-house.
  • The ability to free up internal resources: Since they no longer have to maintain the infrastructure.

Potential risks and challenges

Data protection seems to be the biggest concern, since sensitive corporate information is being hosted and accessed over the Web. Service providers must be able to assure their clients about their security practices. (employee background security checks, segregation of employee functions and sufficient encryption.)

Also compliance to government regulations is a key concern.

If BPO providers will be able to solve these issues Cloud will be here to stay for good and will be the most often picked solution amongst customers and providers alike.