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By Mark Atterby – Senior Staff writer

In terms of managing fast changing technology configurations, new channels and consumer behaviour for interaction channels such as social media and smart phone apps, most BPO vendors are completely stunned like rabbits caught in the headlights of an oncoming car and it could get messy.

The role of voice as the primary channel for managing customer relationships has moderated and as they say the future isn’t what it used to be. Unfortunately, a large part of the industry hasn’t kept up with the speed of change and a number of BPO vendors may suffer.

The future of customer interaction channels has changed! But more importantly – is the BPO industry ready for it?

Who has not heard the story of a customer calling a Telco and being stuck on the cursed IVR queue for ages and then tweeting about their poor experience (Did I mention using a loud hailer to the world?) and getting immediate attention from the Telco. Many players do not have a strategy for dealing with this type of customer reaction.

Even prolific channels such as email and SMS have had their day.

At present, text messaging is the most ubiquitous data solution in the mobile industry. But the market is saturated and growth has plateaued. Smartphones are generating tremendous growth with applications and mobile access to online services.

As applications become slicker and more sophisticated and the average personal use of video intensifies, smartphones are placing increasing demands on available carrier capacity. And rather than using SMS, consumers are increasingly using Facebook, Twitter, and Skype and the messaging and chat facilities within these applications to communicate and share information.

Email had a number of advantages over existing forms of communication such as phone calls, letters and faxes. It was fast, cheap, convenient and the receiver could deal with it when it suited them. Email’s greatest strength has proven to be its greatest weakness: anyone can send an email to anyone, practically free. In other word it makes it easy to SPAM.

One of the best ways to combat spam is to only accept messages from people you know. This has encouraged many people to embrace services such as Skype, Windows Live Messenger, Facebook and Twitter as alternatives to email, especially as most non-work messages are sent to family and friends who are probably also using these other services.

For today’s Gen Y social networking users, having grown up with the convenience of SMS and instant messaging, traditional email is often seen as too formal, cumbersome and slow, just as those who grew up with email might view the telex machine, fax machine or handwritten letter.

Facebook has about 800 million active users, of whom more than half log in daily. Together they send 4 billion internal Facebook messages every day.

Teaching old dogs new tricks

According to Ventana Research customers now interact through a greater variety of channels. More people and systems across the enterprise handle interactions (not just the call centre) and customers want to interact while they are mobile at a time of day that suits them. Recently, the introduction of the iPhone 4 led to customers doubling the amount of data they use to access an increasing range of online services.

The evolution of these trends is challenging the very notion of the outsourcing industry. Chris Luxford, President, Aegis Services Australia, comments, “If you look at any industry whether that is banking, food production, transport and logistics, everyone to some extent is an outsourcer. Yet we have these terms such contact centre outsourcer or back office services provider. I prefer the view that we provide products and service that help organisations ensure they deliver the best experience possible to their customers.”

Its true that BPO organisations need to move beyond the notion of being a provider of voice services or a provider of back office admin services and take a more holistic approach to the customer and how they interact with an organisation. They need to come to grips with the voice of the customer, regardless of channel. It’s about helping organisations influence the outcome of interactions by taking action as the interaction is taking place.

Luxford concurs, “We need to look at the holistic customer experience and in order to do that BPO organizations need to consider themselves not as a (front office) voice company or a back office company but put themselves in a position where they are the voice of the customer. “ Luxford believes BPO providers will need to invest significantly in new technology, not just in purchasing or implementing solutions, but they will need to invest in their own R&D to stay relevant and competitive.

Though it’s not an easy task, some organisations are investing and are making greater use of cloud-based solutions to support interaction handling. “There are many challenges and opportunities presented by the operation of cloud computing-based contact centers to maximise their accessibility,” said Richard Snow, VP & Research Director of Ventana Research. “As companies increasingly look to service customers more efficiently and across the Internet, using a cloud-based contact center model will enable customer service support anywhere in the world. The home or internet-based agent has become a practical reality with new applications and technology.”

The voice channel as well as email and SMS will always remain important however they must be placed in context with all the other customer interaction channels. To understand the voice of the customer on behalf of their clients BPO providers must engage and up-skill their knowledge around social media platforms and mobility and recognise the impact of the social networking revolution or be dis-intermediated as they most certainly will get bypassed.

Investment in the new technology as well as new processes to ensure the best outcomes at the time a particular interaction is taking place is part of the new normal.