The Role of AI and HR in Modern Business Process Outsourcing: A Report

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FUTURE OF WORK
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Contents
Introduction....................................................................................................................................3
Background....................................................................................................................................4
Issues analysis.................................................................................................................................7
Strategies........................................................................................................................................9
Conclusion....................................................................................................................................11
References.....................................................................................................................................12
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Introduction
This report shows the importance of Artificial intelligence in the industry of Business Process
Outsourcing. Artificial Intelligence is the latest technology which is impacting the work of
business process outsourcing. In the industry of the business process, it is necessary to hire
skilled and capable employees in order to enhance the growth of the business. This report shows
the importance of HR managers in the recruitment and selection of new employees and the key
issues faced by the HR manager in hiring new employees. Major components of the technology
Artificial Intelligence are virtual agents and Natural language processing (NLP) and the role of
this technology in overcoming the issues of HR is also discussed in the report.
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Background
In the industry of business process outsourcing, it is essential for the industry to adopt the latest
technology in order to overcome the various problems and to provide a healthy environment in
the workplace. Business process outsourcing is the new big organization which establishes an
important relationship between business and customers. In order to provide more sustainability
in the industry, the company is ready to adopt the technology of Artificial Intelligence. Artificial
Intelligence is a technique used to solve the problem of customers with the help of machines.
Many BPO companies adopting the technology of Artificial Intelligence in order to survive in
the future (Presbitero, et. al., 2016). There are many benefits of using Artificial Intelligence
technology in the BPO industries and these benefits are, Artificial Intelligence provides the
customers the correct information whenever customers want to know something. This can be
done with the help of self-service options. In this option, customers get to know all the desired
information at their preferable time. Customers do not need to call the customer service
executive in order to get the information. This will save them lots of time of the customers by
providing the correct information at the right time. Artificial Intelligence also has the tendency to
provide more information to the customer service executive in order to help them in solving the
complicated issues of the customers. Artificial Intelligence can listen to the calls of the
customers and solve the issues of the customers in the most appropriate manner. This also
records the various facts that how the issue was resolved, how to satisfy the customer was with
the solution and what can be done in the future in order to smoothen the situation if the customer
is not satisfied with the solution. In order to solve complex queries of the customers, Artificial
Intelligence can be able to predict the behaviour of the customers and provide the best solutions.
The job of customer service represented became easier with the help the Artificial Intelligence
(Malik, et. al., 2019). Combination of customer service executive and Artificial Intelligence
resulted in achieving the best results for the customers.
The key role of HR managers in the industry of Business process outsourcing is the recruit
capable employees in the company in order to accomplish the various goals and objectives of the
company. There are several responsibilities on the shoulders of HR manager in order to enhance
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the growth of the business. The most important part of the industry of BPO is the retention of
employees. HR managers can assess the company in the retention of employees by the following
ways mention below:
Employee Engagement- It is necessary for the HR managers to engage their employees by
conducting various activities so that the employees can communicate with each other with the
help of these fun activities. This will decrease the work pressure from employees and they will
enjoy their job more.
Training- Training helps the employees in learning new thing within the organization. Training
will enhance the skills of the employees and also ensure the employees that their efforts are
recognizing by the company which will boost the confidence of the employees.
Appreciation- HR managers can appreciate the employees by rewarding them with incentives,
and appraisals for their better performance. This step will develop the loyalty of employees
towards the organization and motivate them to do more hard work.
There is a huge impact of virtual agents and the Natural language processing (NLP) on HR team
as Natural language processing is a technique in which computer understand the language of the
human. The computer can listen and even write whenever it interacts with humans (Malik, et. al.,
2017). NLP can help HR managers in many ways:
In Recruitment- Hiring managers have to review thousands of reviews in order to hire a single
employee, this will consumer their lots of time for the process of selecting a single candidate.
NLP can help the hiring managers by saving their lots of time as NLP can analyse all the
candidates and shortlist a bunch of candidates on the basis of their skills and experience.
In Interviewing- NLP can help the hiring managers in the interviewing process by analysing
candidate's speech patterns, words, minor details, and facial expressions. This will assess the
hiring managers in examining the confidence of the candidates.
In Employee Engagement- NLP help the hiring managers in engaging the employees with each
other as the technique can examine employee's responses and how exactly the employee feels. It
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can be used for identifying employees’ risk and determine various patterns across the
association.
In behavioural training- NLP can be used in order to provide training modules to the managers
so that they can measure the sentiment, practice their communication and wording so that they
can deliver the bad news to the employees in the most appropriate manner (Viitala, et. al., 2017).
This will not provide any negative impact on the brand of the company.
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Issues analysis
There are various key issues faced by HR managers and their effect on the growth of the
business are as follows:
In selection and recruitment- The biggest challenge for the HR managers is to hire new people
quickly. With the increase in the competition, every company wants to recruit skills people in
their organization. This is one of the challenges faced by HR managers to hire new employees at
a significant rate. Lack of resources is another challenge for HR managers. In order to recruit
new employees, HR managers have to utilize the available resources and as a result, it consumes
their lots of time and efforts. Lack of these resources create lots of problem for the HR managers
in order to recruit qualified and skilled candidates. Another challenge faced by the HR manager
in the process of Selection and Recruitment is they unable to find the candidate for a suitable job.
Many times, HR professional unable to find the resume suitable for the job. As a result, they
have to hire a low skilled employee in order to fulfil that job, this is the main challenge faced by
the HR professionals (Sissons & Green, 2017). Hiring unskilled candidate will not decrease the
growth of the company but also it will affect the working environment of the company.
In training- HR managers can face many challenges in the training of new employees. These
challenges can be the interest of Employees. Training is always a two-way process. Training
managers always try to provide best training sessions to the employees so that employees can
learn new things easily and perform better. But it depends on the interest of the employees, many
employees do not show any interest in the training session and as a result, they did not able to get
appropriate training which is required for the job. The lack of training gain by the candidates
results in decreasing the productivity of the company. Lack of cost in training is also a major
challenge faced by HR managers. Training is a vital part of an employee's career. Performance of
the employees depends on the type of training they get in the organization. Lack of training not
only affect the performance of the employees but it also affects the overall income of the
company.
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In balancing a Relation between management and employees- Human resource management
has the responsibility to maintain a healthy relationship between the employees and the
management. Challenges faced by HR managers in order to maintain a healthy relationship
between employees and managers can be lack of salary and improper working environment. In
an organization like BPO, employees expected a good salary package and a healthy working
environment in order to give better performance. Lack of these things spoil the performance of
the employees and as result managers and high authorities have to take action (Bardoel, et. al.,
2014). This can spoil the relation between employees and managers.
In performance management- It is necessary for the employees to get proper feedback of their
work so that they can get to know their performance in the organization. Lack of these feedbacks
affects the overall performance of the employees. Lack of feedbacks for the work of employees
can create a major challenge for the HR managers in order to improve the performance of the
employees.
In Diversity management- Diversity management is a process to create a healthy working
environment in the organization. In an industry like BOP, where different age of people, gender
work together. People with different age have different thinking and different working style. The
major challenge faced by the HR managers is to maintain the working environment of the
company so that everyone can work together without facing any problem and help the company
to accomplish the goals of the firm.
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Strategies
Issues which major impacts on the business of the industries and their effects are as follows:
 Selection and recruitment have given the top priority which has a major impact on the
business of the and industry, as it is the initial process of any organization is to hire
skilled and talented employees in the company so that they can show their skills in the
organization and assess the company in accomplishing their goals and objectives
 Diversity management has given the second most priority which can have a major impact
on the business of the company (Rompho, 2017). As for the success of an organization, it
is necessary to maintain a healthy environment in the company. Maintain a healthy
environment not only enhance the performance of the employees but also enhance the
growth of the company.
 Training and development in on the third rank which has a major impact on the success
of the organization. As training is very much required in order to train the employees
about the various policies and working of the company. A skilled and talented employee
cannot give their best performance until that employees acquire the proper training.
Providing proper training will increase the productivity of the company and also generate
more profits for the company.
 Relationship between employees and high authorities are on the fourth rank which has a
high impact on the growth of the business. As the healthy relationship between
employees and managers not only motivate the employee to work hard but also it will
enhance their performance in the company.
Various strategies which can be implemented by the stakeholder of the BPO industry to order to
address these issues are as follows:
 Implementation of new technologies- New technologies like Artificial Intelligence and
Natural language processing (NLP) can help the HR managers in overcoming the various
challenges faced by them. This will not only save lots of time of the HR managers but
also allow them to work more effectively in the company. As with the help of these
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technologies, they can easily recruit skilled and talented employees in the company in a
short period of time.
 Conducting various Activities- This strategy will assess the employees in decreeing
their work pressure and make them feel more relax. With the help of this strategy
employees will be able to communicate with each other more and it will help them in
establishing a good relationship between other employees and higher authorities (Hauff,
2019).
 Rewarding employees- This strategy will help the HR managers to motivate the
employees to perform better in the company. By getting the rewards will not only
encourage the employees to do more hard work but also it will push the limits of the
employees which will be beneficial for the growth of the company.
 Conducting face to face sessions with the employees- This strategy will allow the HR
professionals to get the valuable feedback of the employees by conducting a face to face
session. Many a time's employees are facing problems in the organization but they
hesitate to share it with anyone. This will affect their performance as well as affect the
growth of the business. This strategy will help the employees to solve their problem and
the employees will be able to give better performance (Adriaenssen, et. al., 2016).
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Conclusion
Importance of new technology like Artificial Intelligence and NLP has been concluded in this
report in order to show the impact of this technology on the work of HR managers. There are
several issues faced by HR managers in the industry like BPO and the impact of these issues on
the growth of the company has been concluded in this report. There are many strategies which
have been concluded in this report in order to address those issues. For future research, the key
implication would be the more use of technology in the field of HRM which would be beneficial
for the growth of the business.
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References
 Adriaenssen, D.J., Johannessen, J. & Sætersdal, H. 2016, "How can we improve the
effectiveness of HRM strategy? A model for future research", Problems and Perspectives
in Management, vol. 14, no. 2, pp. 175-182.
 Bardoel, E.A., Pettit, T.M., De Cieri, H. & McMillan, L. 2014, "Employee resilience: an
emerging challenge for HRM", Asia Pacific Journal of Human Resources, vol. 52, no. 3,
pp. 279-297.
 Hauff, S. 2019, "Analytical strategies in HRM systems research: a comparative analysis
and some recommendations", International Journal of Human Resource Management, pp.
1-30.
 Malik, A., Froese, F.J. & Sharma, P. 2019, "Role of HRM in knowledge integration:
Towards a conceptual framework", Journal of Business Research,
 Malik, A., Sinha, P., Pereira, V. & Rowley, C. 2017, "Implementing global-local
strategies in a post-GFC era: Creating an ambidextrous context through strategic choice
and HRM", Journal of Business Research,
 Presbitero, A., Roxas, B. & Chadee, D. 2016, "Looking beyond HRM practices in
enhancing employee retention in BPOs: focus on employee-organization value fit", The
International Journal of Human Resource Management, vol. 27, no. 6, pp. 635-652
 Rompho, N. 2017, "HC and financial performance with two HRM
strategies", International Journal of Productivity and Performance Management, vol. 66,
no. 4, pp. 459-478.
 Sissons, P. & Green, A.E. 2017, "More than a match? Assessing the HRM challenge of
engaging employers to support retention and progression: Challenge of employer
engagement", Human Resource Management Journal, vol. 27, no. 4, pp. 565-580
 Viitala, R., Kultalahti, S. & Kangas, H. 2017, "Does strategic leadership development
feature in managers’ responses to future HRM challenges?", Leadership & Organization
Development Journal, vol. 38, no. 4, pp. 576-587.
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