The past few years has seen a marked increase in the demand for off-shore outsourcing, a situation that is expected to continue in the foreseeable future. When companies start to look for an off-shoring partner for the first time, they usually believe they are looking for a ‘BPO’ provider. Not knowing the limitations of a BPO or the difference between a BPO and a GBS provider, let alone a full CXM partner, can lead to lost efficiency and lost opportunity in their initial experience with outsourcing services.
With the increased demand for off-shore outsourcing services has come a proliferation of BPO companies, many operating at the more basic end of the scale and offering limited services, despite what they promise.
The key to successful outsourcing is knowing what is possible, what your company goals are and what your potential outsource partner offers, and then making sure these intersect in the right place. Essentially, if you were to draw an organogram of the outsourcing industry it would look like an inverted pyramid with BPO at the bottom, GBS in the middle and CXM at the top – a BPO offers limited, essential services, GBS offers these services and expands on them, and CXM offers all of the below services as well as more, in a more comprehensive and technologically advanced manner.
The key driver for a business to outsource tasks to a BPO is cost, and cost is driven down through an emphasis on metrics such as call handling times and resolution rates, as well as through sheer economies of scale. Efficiency is driven through structured, predetermined scripts and workflows as well as strict KPIs set by the client, always with cost reduction in mind.
BPO providers generally offer their clients standardised solutions that meet the requirements of multiple clients but offer very little flexibility in terms of personalised solutions.
Ignition CX is able to offer these basic services, but in a far more advanced capacity as part of our more comprehensive customer experience solutions.
Global Business Solutions is a far more holistic, integrated approach to outsourcing than a BPO. Where a BPO solution offers very specific, siloed services, a GBS provider is capable of delivering services across an entire organisation, including finance, HR, IT, logistics, procurement and customer service. These services are managed holistically, integrating with each other to deliver greater efficiency and value.
GBS aligns closely with the client company’s overall strategy, ensuring that business services support the broader organisational objectives and drive long-term growth. It does this by integrating multiple business functions into a centralised framework, allowing for better coordination, consistency and alignment with the company’s strategic goals.
Where a BPO is overwhelmingly driven by pure cost reductions, GBS is focused on creating value for the client by improving service quality, driving innovation and enhancing operational efficiency across the organisation. Ignition CX is able to deliver this value and efficiency by leveraging advanced technologies such as automation, artificial intelligence and data analytics to streamline processes and deliver high-quality services. This technological focus supports continuous improvement and innovation, and also allows us to deliver a GBS solution that has been personalised for each partner.
As we have explained, Ignition CX is able to deliver BPO and GBS services, but that is merely a small part of what we do. During the 22 years that Ignition CX has been in operation, we have also established a number of our own brands and products, which has meant evolving from providing services to also managing the entire end-to-end customer lifecycle of these brands. This first-hand knowledge of both sides of the client-service provider relationship has given us a real advantage over rivals – because we do it for our brands, we know how to do it for our partners’.
This experience has also meant that we have made technological advancements for the industry, developing software and machine learning processes to make better use of big data and empower our service offerings.
As a global leader in Customer Experience Management (CXM), we manage the entire customer experience journey on behalf of our clients. Instead of interacting with a customer only on one touchpoint, such as sales or customer service, our primary focus is on designing, orchestrating and optimising interactions across all touchpoints, from initial awareness to post-purchase support and loyalty programmes.
We leverage data, analytics and customer insights to truly understand customer behaviour, preferences and pain points. This knowledge is then used to create personalised, omnichannel experiences that meet or exceed customer expectations on behalf of our partners. Services offered by CXM companies can include customer journey mapping, user experience design, customer data management, loyalty programme development and employee training for customer-centric culture.
Ignition CX operates in diverse sectors with clients across the globe. By utilising our machine learning and artificial intelligence platforms, we are able to create customised, personalised solutions for our partners, no matter which industry they’re in and no matter where in the world their customers are based. By talking to these customers in the right way, time and through the right channel, we are able to win customers for our clients and ensure that they stay loyal and satisfied with the service they receive. This is what outstanding CXM companies do for their partners.
Which one is right for your business? The choice between a BPO, a GBS and a CXM company depends on your organisation’s specific needs and goals. If you’re primarily looking to outsource specific tasks or processes to reduce costs and increase operational efficiency, a BPO company may be the right fit, or you could leverage a GBS centre to centralise and standardise internal processes across the enterprise while maintaining greater control and alignment with organisational objectives. However, if your focus is on delivering exceptional, personalised customer experiences that drive loyalty and revenue, Ignition CX is the way to go. With Ignition CX, there is the space and opportunity to start with more basic BPO services, done the right way, and then grow the partnership to a more integrated relationship by choosing any of the possible CXM services we offer.
Saleesha Govender
Head of Commercial at Ignition CX