Industry Commentary

BPO Business Parks Emerge as Outsourcing Differentiator

By July 17, 2019January 10th, 2024No Comments

The decision to choose a third-party provider for contact center services depends on many different factors.  The outsourcer’s history as a provider of choice for clients and overall reputation is important. So, too, is the outsourcer’s ability to offer services alongside compliance capabilities and technology solutions.  These are the table stakes for winning and renewing services contracts. Beyond this though, the ability to deliver seamlessly remains something that an outsourcer must be able to ensure should it wish to win more business from the ever-discerning buyer community.  This is why outsourcers are more concerned with finding the right facilities to help them achieve this end.  Many are looking at BPO-oriented business parks as the way forward, taking advantage of cost-friendliness, quality, and speed-to-market.

For a growing number of outsourcers, the old business model of choosing a city in which to deliver contact center services — by sleuthing out the right neighborhood in which to build or to buy a facility, then getting the site online — has gone the way of the pet rock.  Realistically, with more demands from enterprises to start delivering on contracts quickly, setting up new capacity is a major chore.  Obviously, from a greenfield perspective, construction entails a significant amount of time and money.  And while buying space may be a more efficient use of time, the reality in 2019 and beyond is that retro-fitting initiatives in order to comply with security and environmental standards is both expensive and time-consuming.  These are among the key reasons that BPO-focused business parks are gaining more interest.

The reality is, BPO-oriented business park facilities that are recently built or under construction tick the right boxes for quality customer experience delivery. Those of quality use the best materials, are in compliance with the most important environmental standards, provide seamless network connectivity, and meet security requirements. Increasingly, facilities in these parks offer a plug-and-play element that many isolated properties can’t match.  Further, providers need to be aware that both their existing and prospective clients are conscious of this dynamic.

In the 2019 Front Office BPO Omnibus Survey of enterprise contact center executives in major demand markets, respondents indicated that when considering an offshore delivery location, the presence of BPO-oriented business parks was an important factor in making a final choice.  In fact, for US and Australian respondents, it was among the top 2 considerations.  Enterprises are more aware of the virtues that business parks designed for the outsourcing sector bring to the table, and BPO players can expect this to emerge as a differentiator in the market going forward.  The good news is that developers around the world are ensuring a steady supply of capacity.

Across the globe, business park development targeted to the outsourcing space continues to grow.  Obviously, much of this is occurring in the offshore and nearshore, in direct response to demand from outsourcers of all sizes.  And these efforts have proven successful.  A key example is Altia Smart City in San Pedro Sula, Honduras, which has managed to attract many BPO brands to its facilities, and serves as an example for emerging developments like Riversands Commercial Park in Johannesburg.  It is also testament to the willingness of outsourcers and their clients to leverage quality construction in order to reduce overheads, while at the same time start delivering on campaigns.  Outsourcers need to be aware that their clients will be more favorable to this business model going forward, and need to be on the lookout in their various delivery points for these real estate opportunities.