Figuring Out the Perfect Formula for Hybrid Operations

What’s the magic ratio for on-site and remote operations in a hybrid BPO setup? 

As the remote vs on-site debate rages on, business leaders continue to experiment with recipes for  functional hybrid operations that satisfy all parties involved.

Although BPO operators and market analysts have yet to agree on a definitive number –with some of them giving up entirely and opting for a case-by-case approach–, a set of experts consulted by NSAM pointed to a 70/30 ratio favoring in-office operations being among the most common setups.

“Many clients will send their top agents (30%) to work remotely as an incentive and because they are capable of meeting performance targets,” commented King White, CEO of location advisory firm Site Selection Group.

Mr. White mentioned that remote delivery setups among his clients go as high as 70%. Those companies, he explained, tend to use on-site facilities more like operational hubs that function as training facilities for agent onboarding. Once the new agents are ready, they are quickly sent back home for remote delivery.

Anand Biradar, Sagility’s Head of Operations in the Americas, commented that the more common hybrid setups he has seen go for 80/20 and 70/30 ratios. The implementation of hybrid, however, depends on the maturity of the operations and the performance of the agents on site.

“Unless the specific operations have matured over the years, we will mostly start with everybody training at the office,”Mr. Biradar explained. “There’s also a possibility of working also for a few months from the office and then about 20 to 30% of agents will get a chance to work from home. Performance and reliability factors matter to be eligible to work from home.

“Mature operating teams have the option to start by hiring and training up to 30% of agents to work from home,” he added. “In some geos/operations, this can go up to 50%.”

Client’s always right

Clients are perhaps the most important factor when it comes to BPOs’ approach to their delivery setup. Not all customers provide their partnerships the freedom to choose how to allocate their resources in an in-office/remote dichotomy. Some BPO operators actually argue there’s no “magic ratio” when it comes to delivery setups. It all depends on the wishes of the client.

“There isn’t a preferred number. It is just by the culture of the client the BPOs are working with,” commented Paige Webster, CEO of Webster Global Site Selectors. “Some are starting to mandate all operations in office, as a matter of company policy. Others have the hybrid system, and others don’t care. I think corporations are still working out their policies.”

“This is a wide range but highly driven by requirements of a BPO’s client requirements,” added King White. “The captives/BPO clients are often dictating what the ratio needs to be. It varies by country.”

We’ve reported on the ways in which BPO providers stick closely to their clients’ wishes when it comes to the setup of delivery. As business operations grow more vulnerable to cyberattacks, many companies are opting for the reinforced security offered by on-site operations, at least when compared to WFH. This rings particularly true for clients which operate under heavy regulated verticals, like BFSI.

“Everything depends on client requirements in regards to security, must-have certifications and how that relates to the work to be done,” added Francisco Robert, Concentrix’s Regional VP of Sales Delivery We have bilateral agreements with clients which determine if a hybrid model is possible.”

In its Central American operations, Concentrix has maintained a hybrid approach with a ratio of 70% on site and 30% remote, Mr. Robert explained. That ratio has been landed on by analyzing basic considerations for any sourcing professionals, he added: fiber optic availability and Internet penetration, velocity and stability in a particualr zone or country, as well as the risks related to extreme weather.

“Our 70/30 approach has worked quite well. We don’t see a need to modify it any time soon,” he said.

Provisions for special economic zones (SEZs) have also complicated things for the hybrid experiment. SEZs are location-centric due to their very purpose. Compromise was necessary post-COVID to accommodate for the needs of investors while sticking to the point of SEZs. In Jamaica, for example, it was mandated that companies operating in SZEs could not have on-site headcount fall below 70%. 

Ground won’t stop moving

The shifting macroeconomic, technological and business landscapes has made things very difficult to pin down in the hybrid experiment for BPOs. 

Changes in regulations, technological capabilities, economic forecasts, client expectations, the needs of employees and even the tenets of the real estate market have BPO operators trapped in something more akin to a guessing game than calculated decision-making. 

“There is a hybrid system now around the world,” commented Paige Webster. “Offices have reduced their square footage from 100 square feet down to 50 square feet. BPOs do not need as many square feet per individual because they are using hybrid systems.”

As the remote vs on-site tug o’ war rages on, BPOs will have to navigate a complicated labyrinth. There’s little indication that the business world will go back to the traditional always-on-site model. However –with the exception of tech–, it seems that the dream of always-remote won’t come to be either. 

It’s a hybrid world, indeed.