HomeInsideML-Powered Workforce Management in BPOs

ML-Powered Workforce Management in BPOs

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Managing workforce efficiency in BPOs requires managers to juggle multiple variables in real time. On the one hand, they are pressured by evolving client expectations, stiff SLA metrics, escalating costs, management goals, and competitive forces.

On the other, they need to manage employee expectations, productivity, talent, and motivation. Moreover, today’s omnichannel contact centers are staffed with multi-skilled resources which adds to the complexity, making the task of planning and optimizing workforce, scheduling, and rostering a veritable nightmare.

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In the dynamic world of BPOs, workforce management is the critical pillar on which business success is built. Traditional approaches using spreadsheets fall short of effectively managing the numerous inter-connected variables while driving operational efficiency. Workforce management tools powered by machine learning (ML) have emerged as game changers in this domain. They ensure that the right resources are available at the right time while matching skills with process requirements, leading to enhanced productivity and improved customer experiences.

ML has been applied to enhance several areas of workforce management. It is used to eliminate the guesswork of demand forecasting by considering patterns, trends, and correlations that are otherwise difficult to discern. WFM teams can exploit machine learning for multiple types of forecasting including uni-variate, bi-variate, and multi-variate forecasts. ML helps in building confidence with more data and reduces the variance between forecasts and actual demand, which helps managers plan better on staffing requirements. Data-driven, informed, and proactive decisions ensure that optimal resources are allocated to meet SLAs while controlling scheduling leakages.

Let us consider three ML-led planning stages that make a transformative improvement:

Addressing Staffing Challenges

ML algorithms can predict forecast and staffing requirements with greater accuracy by considering various internal and external factors. Models ascertain future demands from historical patterns and trends, seasonality, holidays, or events like new or upgraded product launches. This insight allows managers to address resource needs optimally, avoiding over- or under-staffing.

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Unplanned demand spikes are inevitable in contact centers and must be managed. ML-based workforce management platforms can detect these sudden surges early and prescribe resource reallocations. This allows BPOs to minimize customer wait times and sustain service levels with maintained customer satisfaction levels.

ML algorithms are capable of matching each incoming call or query with the right agents based on their skills, experience, and performance. Optimized skill-based allocation enhances first-call resolution rates and reduces resolution time while maximizing on workforce utilization and efficacy.

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ML-driven workforce management tools are also capable of adaptive scheduling, taking into account agent preferences, availability, and workload demands. BPMs can maintain the flexibility to smoothly handle unexpected absenteeism or last-minute roster changes without service disruptions. At the same time, it can account for shift bids and weekly offs, empowering employees with better control and balance in their work-life.

Cost Efficiency

ML-powered tools automate repetitive and manual tasks in workforce management. This reduces the need for supervisory intervention and associated costs. For instance, it can automate the generation of optimized schedules, taking into account multiple factors like forecasted staffing needs, rostering rules, available agents, and their skill sets. Beyond eliminating administrative overheads, these data-driven schedules are more accurate and timelier. Freeing up managerial resources from mundane tasks empowers them to drive higher-value goals, process improvements, and innovations.

ML algorithms have also been used for risk mitigation, using them to predict potential risks and uncertainties. For example, it can anticipate and raise alerts on possible service disruption due to network outages. This helps plan and implement proactive strategies to alleviate adverse impacts on costs and revenue loss.

Insights into future resource requirements using ML-based forecasting provide valuable information for management for making informed investment decisions, both for staffing as well for infrastructure needs. Accurate predictions lead to timely and better resource planning, minimizing unnecessary last-minute expenditures, and improving overall cost management.

Continuous Improvement

It is critical for BPMs to continuously innovate and improve their processes to stay competitive and cost-effective. ML algorithms continuously learn from new data, enabling adaptive optimization of processes in response to changing business dynamics and customer needs. Workflow management with ML inputs can thus drive continuous improvement in performance, operational gains, agility, and responsiveness.

With analysis of data from customer interactions, agent performance metrics, and customer feedback, ML algorithms identify areas of improvement. ML-enhanced quality assurance tools unearth actionable insights from data, enabling feedback loops between agents, supervisors, and management.

Moreover, these tools facilitate the identification of root causes of issues while driving continuous improvement initiatives. ML is also applied to enhance personalized customer experiences in BPMs. By continuously learning from customer interactions and feedback, algorithms help managers with insights into customer preferences. Armed with that knowledge, managers can refine their strategies, continuously improving customer engagement and satisfaction.

An ML-Powered Future

ML is a significant part of AI’s future. Using self-learning models trained on vast amounts of data, ML-powered workforce management has improved prediction accuracy, demonstrating better results than traditional statistical models used in BPMs. This sets the stage for better decision-making, optimized staffing, improved rostering, and overall enhancement of operational efficiency.

Markets and Markets predicts a growth of 21.3% annually for the global call center AI market. This growth rides on the success seen in multiple areas of applications discussed. It is no surprise that ML has now graduated from “good to have” to be an essential feature in today’s contact center workforce management software.

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Vikas Wahee
Vikas Wahee
Vikas Wahee, Head of Solutions, BPM & ITES, FLOW

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