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Generative AI in Outsourcing and its Impact on Business Models

  • Category

    Software & High-Tech

  • Chirpn IT Solutions

    AI First Technology Services & Solutions Company

  • Date

    June 03, 2024

Artificial Intelligence is something we all must have heard at some point. Well, it is ruling the world with its technological developments that happen every single day. Startup companies include artificial intelligence for their new product, services, and other work. When OpenAI's ChatGPT was released, it was the talk of the town and everyone was curious about it. On one hand, there is excitement about the expansion of AI and the convenience it provides in completing routine tasks. On the other hand, there are concerns about the potential risks and negative impacts of these inventions, especially if regulations surrounding their use are inadequate. These concerns highlight the need for greater attention to be given to the regulation of AI to minimize the possibility of any harm. Let’s dive deeper to learn more about Generative AI in Outsourcing and its Impact on Business Models. 

Generative AI and its Current Applications

Artificial intelligence (AI) technology, known as "generative AI," creates text, images, audio, and synthetic content using deep learning models. When integrated into a business process outsourcing environment, it can improve automation, streamline workflows, and improve services for offshore workers and the customers they serve. Nowadays, companies use this transformational technology, GenAI, to simplify their work, and they also want to be less dependent on manual work in this speedy era.

Talking about the current scenario, companies are not behind. They use generative AI to educate their voice assistants, generate images, create videos and music, and not only these they also use it to convert text to speech. GenAI is already being used and evolving in a few industries at a fast pace, but there is an increasing demand for experimentation across various industrial segments and use cases. If we look at a broader space, GenAI, well this technology has already proven its effectiveness in a variety of industries, including IT, media, education, and entertainment, to achieve the intended objectives. It is also spreading its limbs into new and important industrial segments such as medical, healthcare, law, and financial services.

How is Generative AI used in Business Process Outsourcing Companies?

Utilizing generative AI to support diligent employees can have a number of advantages for outsourcing companies, who take great satisfaction in going above and above for their clients.

Customer experience: Generative AI technologies can assist Business Process Outsourcing industries in raising the bar in terms of providing quicker service. They can also comprehend the wants and preferences of their clients, especially in light of the increasing emphasis on the need to provide more customized experiences for them. The technology can raise customer satisfaction and loyalty rates by evaluating consumer data and making tailored offers and recommendations. In recent years, Outsourcing Customer Service Companies have extensively used GenAI, and the reason is quite clear now. 

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Automation: Generative AI shines here because, like other businesses, BPOs have a stake in working smarter, not harder. Numerous technologies and solutions can automate repetitive and routine operations that were previously completed by humans, freeing up employees' time to focus on higher-value and more difficult work. The end results were better quality, lower costs, and increased efficiency. In other words, AI outsourcing is going great along with businesses and their clients. 

Predictive analytics: In today's business world, data is king, and artificial intelligence can lead to new opportunities by giving Business Process Outsourcing companies access to market trends and insights into customer behavior. By doing this, outsourcing companies can make more educated choices and eventually offer their clients better services. 

Flexibility and scalability: When onshore companies must adjust their operations to meet fluctuating demands, the BPO industry proves to be a priceless asset. Generative AI solutions can help enhance that capability. Outsourcing companies can include these technologies to supplement the standard technology. Also, they can hire initiatives that have traditionally been used to provide such flexibility, whether it be a seasonal peak or a rise in client requests.

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Why is being Cautious needed while using Generative AI outsourcing in business? 

Even if many companies are investigating the possibility of generative AI pilots, they and their clients need to set reasonable expectations. In fact, one could argue that now more than ever, they need to think carefully about whether rushing to deploy specific generative AI technologies will be worth the risks.

In the midst of the excitement around ChatGPT and other products, development outsourcing executives are not the only ones who believe generative AI might be a one-way ticket to higher output and better efficiency. Though it might be appropriate for low-risk activities, the risk of generative AI producing inconsistent and unpredictable information has been repeatedly demonstrated for an emerging technology. This is a big worry when using generative AI in customer-facing circumstances.

Because of this, BPO companies need to focus their generative AI skills on "agent assistance," the domain in which the results produced by technology are verified by people. Though the outsourcing industry is mostly about people, generative AI is transforming the business landscape. Until technology can give 100% accuracy 100% of the time, it should be used to support the people who make BPOs the indispensable services that they are.

Where can Generative AI outsourcing can enhance business? 

Outsourcing providers should prioritize areas that will yield immediate benefits for themselves and their clients when implementing generative AI.

Human resources: generative AI has enormous potential to improve the HR support job. Recruitment and onboarding are BPO industry mainstays. The technology can facilitate employee onboarding and help find qualified candidates. It can also conduct candidate research and analysis to support staff engagement and retention initiatives.

Contact centers: The business process outsourcing (BPO) industry has a long history of offering onshore clients the human agents they require to provide fair, round-the-clock customer care. Because of generative AI, these agents are able to respond to client inquiries more quickly and effectively. This results in shorter study cycles and more efficient communication, freeing up human resources to work on more complicated problems.

Content Creation: BPO companies offer various services, including marketing materials, FAQs, and customer-facing articles, all of which require pertinent and contextual content. Such content can be initially drafted by generative AI, which offshore staff can then assess and utilize. In a world where material is in short supply, the key is to scale content needs while maintaining human oversight to guarantee quality and correctness.

Workforce optimization: Allocating resources wisely is essential to the success of any business, much less one that revolves around the most valuable resource of all: human capital. Generative AI can be used by BPO operations to use past data, customer trends, and outside influences, which will ultimately result in more accurate resource allocation and forecasts. One way to ensure that individuals with the appropriate talents are assigned to the right tasks at the right time is by optimizing staff schedules. 



Businesses have experienced multiple cycles of change in the past, and this is nothing new for any new technology that causes disruption in the market. However, sustainable solutions are essential when advancements are occurring at this rate, and updates are regularly occurring without regard to policy standards. A consulting-based strategy to develop robust processes and cooperative efforts between vendors, service providers, and brands will facilitate the development of an ecosystem capable of delivering the desired transformation. The competence needed to handle project outcomes will increase when technology advancements are significant and applications are endless, necessitating collaboration to improve and fortify current procedures.


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