7 strategic approaches for global expansion and compliance in BPO

Business process outsourcing (BPO) used to be known as a niche service, associated with customer service and call centers. As time went on, more businesses grew savvy of the benefits that offloading tasks to a BPO service could grant. 

The market is now set for new highs, estimated to grow at a CAGR of 9.6% all the way to 2030. Many BPOs are looking at global expansion, and the truth is, they’ll need some help getting there.

Enter Hubstaff’s Executive BPO Playbook. This comprehensive report details several winning moves, backed by prominent industry leaders, that organizations can apply in their efforts to evolve their BPO models. 

This article examines the seven moves you can make to ensure your BPO is fit for global expansion and compliance across different markets. 

Evolving the BPO model for global expansion and compliance 

Outsourcing is here to stay, especially among small businesses. It’s reported that as much as 83% of small businesses outsource a part of their functions. 

For successful global expansion, traditional outsourcing models aren’t going to cut it. BPOs must evolve their operational models to align with new regulatory frameworks and tech advancements. 

This evolution allows firms to manage the complexities of international markets while mitigating risks associated with non-compliance. 

Transformative action is needed, and it’s a race to see who can adapt first. 

The 7-point strategy for compliance-driven global expansion

Here are seven key moves that BPOs should consider to move forward in this new outsourcing era: 

1. Incorporate automation

Automation plays a critical role in maintaining compliance across global operations while improving efficiency.

As part of your global expansion, familiarize yourself with the technologies of Robotic Proces Automation (RPA) and Artificial Intelligence (AI). These tools can help streamline compliance-related tasks like data validation, audit trails, and fraud detection. 

AI-powered tools continuously monitor workflows, flagging compliance risks in real-time. This reduces potential human error, maintaining adherence to local laws and regulations. 

2. Harness the potential of new work models

The COVID-19 pandemic has accelerated the acceptance of flexible work models, such as remote and hybrid work. 

These types of workstyles allow BPOs to optimize costs while ensuring employee productivity. 

There’s a longstanding concern that these types of models promote lesser outputs. But this merely indicates a flaw in expectations. After all, does it matter where your employees are if they still accomplish their tasks well? 

Rather than focusing solely on hours worked, BPOs should measure success by outcomes and results. This shift fosters a culture of accountability and can lead to increased client satisfaction.

Asynchronous workflows also aid in this, since with global expansion, BPOs operate across multiple time zones. 

It’s clear that leaders must adapt their management styles to effectively oversee remote teams and establish trust and empowerment. 

3. Prioritize data privacy 

Data privacy is a non-negotiable pillar of global expansion, especially for BPOs handling sensitive client information.

Organizations must instill a culture where compliance is a priority from the top down. This mindset ensures that all employees understand the importance of data privacy and adhere to regulations.

Regular training should be done, with employees educated on data privacy laws like GDPR, CCPA, and PCI-DSS. 

Of course, it’s foolish to think that you can do this all on your own. Accept that you don’t know everything and hire consultants to help you fortify your cybersecurity. 

4. Partner with your client in new ways

BPOs must evolve from mere service providers to trusted business partners.

By investing time in understanding clients’ operations, BPOs can tailor their services to meet specific needs. This deep understanding leads to stronger partnerships for global expansion.

In this case, it helps to focus on the specific industry that your clients are in. 

Developing niche expertise in industries like fintech, healthcare, or legal services can differentiate a BPO from competitors. Innovation in service delivery can lead to unique value propositions for clients.

5. Implement generative AI

As stated earlier, AI is the new technological wave, and generative AI has been wholeheartedly accepted by BPOs. 

“Compliance-related errors have been reduced by 60%, while processing efficiency has improved by 40% using AI-driven solutions,” reports Outsource Accelerator.

As with any disruptive innovation, this has come with some pushback. If you’re determined to use generative AI in your global expansion, you’ll need to keep a few things in mind. 

Implement transparency protocols. As AI tools become integral to operations, organizations must clarify how they’re used in business processes. This transparency builds trust with clients and employees.

Build AI systems with privacy embedded in their design. This means implementing safeguards to protect sensitive data throughout the AI lifecycle.

Adopt a proactive stance on AI regulation. As AI regulations evolve, BPOs must stay informed and adapt their practices to ensure compliance. This forward approach positions organizations as leaders in the industry.

Transparency isn’t just a courtesy—it’s an essential part of building trust, even if clients don’t always have the tools to discern what’s happening behind the scenes.

6. Design a scalable BPO framework

Global expansion requires scalable infrastructure that meets compliance requirements across multiple regions.

Firstly, this can take the form of platforms that enable you to manage remote teams, such as Hubstaff. Invest in compliance-centric technology to keep up with changing regulations and market conditions. 

But overall, you’ll want to keep your processes flexible. Utilize remote and hybrid models, adapt your pricing structures, and experiment with different collaboration styles.

Scalability is the essence of evolution. If a BPO model is not made to be scalable, then it will be made obsolete. 

7. Acquire top-notch talent

Finally, a BPO is nothing without the talent powering it. This is an industry focused on providing people services worldwide, so having a skilled workforce ensures competitiveness in global expansion.  

To attract and retain top talent, BPOs should establish thorough vetting processes that ensure exceptional hires while maintaining compliance with local labor laws.

It’s not enough to find them– you must also train and retain them. Keep staff interested with regular upskilling and employee engagement strategies.

Don’t forget that the strength of a global workforce is diversity. Expand your recruitment into diverse channels to tap into a broader talent pool. 

Take the next winning steps to global expansion with Hubstaff

Scaling a BPO operation globally requires a strategic blend of compliance, innovation, and agility. By grasping the points outlined above, businesses can navigate complex regulatory landscapes while driving sustainable growth. 

Hubstaff provides the necessary tools that will ensure many BPOs stay ahead of the pack. 

The platform offers the following benefits: 

• An enhanced visibility into productivity which ensures that remote teams spread across different time zones are aligned and working efficiently. 
• Automated reporting that empowers organizations to adapt their operations in response to real-time insights, improving their chances of success as they expand globally.
• Effective payroll integration to ensure that a company’s global workforce is well supported and motivated.
• Intuitive tools for workforce management that optimize operations and provide cohesion. 
• Peace of mind through data security and privacy to protect sensitive information during global expansion efforts. 

Adopting a tool like Hubstaff not only improves operational efficiency but also enhances employee engagement and satisfaction, enabling smoother transitions into new markets.