Challenges for BPO service providers

Challenges for BPO service providers
In addition to the challenges faced by clients, BPO companies themselves have challenges:

1.High staff turnover, especially where work is not challenging to the employee's skills
2.High cost of training
3.Tendency to lose the most experienced employees to the clients
4.Ensuring the security and confidentiality of information, especially when privacy laws vary from country to country
5.Pricing and value of BPO service offerings
6.The need for expensive Integrated IT systems
7.High telecom costs
8.Limited choice of providers
9.Existence of traditional “Face to face” culture limits acceptance by buyers
10.High bandwidth costs
11.Poor marketing skills / lack of knowledge on how to market BPO services
12.Increased activity of Indian BPO providers in key markets such as USA and UK has resulted in increased competition and new entrants such as Eastern Europe, Philippines, Morocco, Egypt, South Africa and China.
13.The duration of outsourcing contracts is getting shorter and average contract value is becoming lower. This development is caused by the increasing popularity of the Multi Vendor Outsourcing model.

Benefits for BPO service providers in Kenya
1.Income generation
2.Job creation for the pool of skilled IT staff and college graduates
3.Transformation of Kenya to “e” with most of the information accessible online
4.Kenya has low labor costs
5.Providing new ways of diversification of the economy
6.Increase in Foreign Direct Investment
7.Improved investor confidence
8.Kenya will continue to be a re-known business destination for BPO in the region

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