As the world continues to watch with uncertainty as emerging COVID19 variants impact all aspects of daily lives, forward-looking BPO players are planning accordingly. Despite the obvious changes in lifestyles and working models, customer management activities continue at a frenetic pace.
This is positive in that consumers continue to purchase goods and services. But the pressure is on for outsourcers to ensure their operations are secure from disruption. This was highlighted recently by two BPOs that have expanded into new destinations, using geographic diversification to their advantage. Not only is this strategy essential to meeting evolving client requirements, but it is a prudent means of managing business continuity.
Those watching the BPO site selection game were in luck the past few weeks, with a pair of outsourcers announcing bold changes to their respective delivery footprints. And, while each was very different from the other in terms of how their respective new deployments are to play out, the intention to geographically diversify new capacity was clear.
The decision by Scotland-based BPO Ascensos to open a new facility in Cape Town is its first foray beyond domestic and European nearshore locations. The announcement of this new South African operation comes on the heels of its new Ascensos Local Scottish site in Stranraer, along with additional planned domestic expansions. South Africa was ranked the most favored offshore delivery CX location in the 2021 Ryan Strategic Advisory Front-Office Omnibus Survey, and Cape Town has long been the center of the country’s global CX industry. Ascensos’ expansion to South Africa speaks to the imperative for a growing company to ensure that its capacity is distributed in such a way that instills confidence and resiliency.
The dynamic is similar in the case of Redial BPO’s recent expansion into the US border community of Mexicali. Redial BPO has been one of the pioneering outsourcers that have validated the value of CX nearshore investment along the US / Mexico border, starting from its base of operations in Tijuana, where it already runs two sites. The decision to add new capacity 175 kilometers further east into Mexicali is bold but has the potential to pay dividends. Not only does it reinforce Redial BPO’s positioning as a leading provider along Mexico’s northern border, which is becoming one of the most talked-about regions in the American nearshore, it also provides their clients with an added level of geographic diversification by de-centralizing its workstations count beyond greater Tijuana.
The key in each of these moves relates to quality as a selection criterion for BPOs looking for geographic diversity. In the case of Ascensos’ choice of Cape Town, it has picked a city that is synonymous with a legacy of high-quality CX services for global clients. Further, Cape Town is situated in a province that is seen to be inherently stable and that has a record as being business friendly. Notably, Cape Town came out relatively unscathed from the violence that plagued parts of South Africa earlier in the summer. As per Redial BPO, Mexicali’s proximity to the US means a population that offers a significant number of English speakers, is bi-cultural and empathetic to American consumer needs.
An important factor for any outsourcer looking to grow its delivery with an eye toward resiliency is to also incorporate quality, value, and stability. Alongside geographic diversification, operators have to be confident that any new destination will have the right levels of scalability of talented workers that can function in a stable operating environment. For Ascensos and Redial BPO, Cape Town and Mexicali tick these boxes, offering lessons for other BPOs that are considering expansions.
Image of Cape Town and Mexicali provided by TractionMedia.co