SWOT analysis (alternatively used term globally is “SWOT matrix”) is a tool of strategic business planning that is primarily focused on identifying and evaluating all the strengths, weaknesses, opportunities, and threats that are (directly or indirectly) involved in the execution and management of a business project or venture. It is used strategically by businesses to develop comprehensive understanding of the ways in which a particular project should be executed, performed and managed so as to procure as-expected outcomes. As the business world is much more enigmatic and competitive than ever, it has become quite imperative for all the businesses to pay exclusive attention to SWOT analysis of all the projects.
What is meant by SWOT analysis of BPO industry?
It is no surprise that multinational conglomerates as well as small and medium-sized enterprises nowadays collaborate with outside experts or outsourcing firms to accomplish several crucial projects and business specific functions, and considering this scenario and worldwide popularity of outsourcing, it is more important than ever for organizations to choose the outsourcing partners after dissecting SWOT analysis of the outsourcing industry. Once you have paid it enough attention and consideration, it would become much more convenient for you to undertake prudent, analytics-based outsourcing decisions.
SWOT analysis primarily involves evaluating all the:
- Strengths — Strengths are primary the traits or characteristics of a business entity, project or venture that give it a competitive advantage over others.
- Weaknesses — Characteristics of a business entity, project or venture that act as hindrance in achieving all the organizational objectives.
- Opportunities — Opportunities can be defined as the factors in external environments that, if prudently exploited, can help businesses in achieving all the organizational objectives.
- Threats — Elements and factors in the external environments that can potentially cause trouble or create complications for various organizational functions or business ventures.
An elaborate and informative SWOT analysis mechanism focused on evaluating all the factors associated with internal as well as external factors can help businesses find the most competent BPO services providers. Not only this, a comprehensive SWOT analysis can help you strategize the organizational business planning in such a manner that it paves way for perfect match for all the internal environments with external factors.
Let’s pay attention to what a comprehensive SWOT analysis primarily includes.
- Analysis of strengths: If you are in search of a trusted BPO solution provider, then you have to pay special attention to the strengths of the solution provider. To decipher the same, you need to understand that BPO industry offers a wide range of competitive advantages, such as skilled human resources to manage customer engagement quite competently; 24/7 availability to ensure competent inbound call center solutions; and technological expertise to manage and monitor every tech support service or market research function efficiently.
- Analysis of weaknesses: It would always be a prudent step on your part to identify and analyze all the weaknesses that the BPO firm of your choice is suffering from. Two of the most common issues that outsourcing firms often come across are high employee attrition rate and cultural difference. Preferably, you should opt for the solution provider that does not suffer from high employee attrition rate. Similarly, you must not approach the firm that has some sorts of cultural difference with your brand.
- Analysis of opportunities: It is no surprise that the BPO industry is laden with a wide range of opportunities that must be used prudently. Exploring global markets and emphasis on customer engagement have played crucial roles in helping outsourcing firms deliver top-tier BPO services. You must try to enter into professional collaboration with the outsourcing firm that has made the most of all the opportunities in the markets. This type of organization can actually help you achieve all your organizational objectives with utmost competence.
- Analysis of threats: Threats are the challenges that outsourcing firms, and they certainly have different level of degrees as well as impacts on the businesses embracing outsourcing. One of the most potential threats that outsourcing firm encounter is the cut-throat completion in the industry. However, you must not overlook the fact that several competent outsourcing firms have made the most of the competitive environment, and they have adeptly been delivering cost-efficient inbound call center services as well as outbound call center services.
Conclusion: In order to have a successful future and leverage all compelling benefits of outsourcing, businesses must anatomize SWOT analysis of the BPO industry.