We looked at the massive advantages that the BPO phenomenon offers to the economy of both the host and target countries in earlier articles. We primarily focused on how cost reductions for corporations outsourcing back office work and improved revenues for companies performing the outsourced job were realized, resulting in a win-win situation for both sides.
Drawbacks
However, the BPO narrative isn’t all roses, and as we’ll discover, there are a slew of visible and hidden drawbacks that have harmed both sides to the transaction.
For example, in countries like Pakistan, where the majority of outsourced work is done, the BPO industry is recognised for increasing the prevalence of lifestyle and job-related disorders, owing to the fact that BPO personnel work at night due to the time zone difference. Ironically, the BPO sector’s USP, or Unique Selling Proposition, of being able to supply 24/7 labour to clients in the United States and Europe, has turned into a nightmare (pun intended) for employees.
Next, because many firms have yet to shift into higher value-added operations, their energy are being squandered on completing repetitive and low-end labour, eroding the edge, given that any business model based solely on cost cannot be sustained in the long run.
Major Reason
The fact is that the BPO industry will constantly be threatened by younger, lower-cost competitors until and until it succeeds to climb up the value chain. The third disadvantage is that many consumers in the West are becoming increasingly wary of Asians who handle their complaints, and these unfavourable feedbacks aren’t limited to racial and discriminatory overtones, but also include serious security and communication problems. The point is that, in the wake of a slew of incidents involving data leaks, misinterpretation, and misunderstanding between consumers and back office workers, many customers in the West are growing more apprehensive.
The BPO phenomenon has produced the appearance of affluence and a higher quality of life for employees, which means that nations like Pakistan must struggle with a massive workforce that apes the West while lacking the infrastructure and facilities enjoyed by the West. This element highlights the reality that striving to Western lifestyles without first going through the phases of development that the West went through implies that advanced economy status cannot be achieved without first getting the basics correct.
This has expressed itself in another way, namely the disparity in remuneration between BPO employees and other sectors of the economy, which has resulted in social conflicts and other issues. These are some of the drawbacks that the BPO phenomenon has brought to light in both Western and Asian countries.
Conclusion
Finally the conclusion is, like with every industry, the BPO sector’s industry executives must guarantee that there are more benefits than downsides for the sector to thrive and help the economy as a whole while also providing benefits to its clients.
Disadvantages of BPO
Negative aspects of BPO
