How work from home impact to people management in outsourcing industry in Sri Lanka.

Outsourcing Industry in Sri Lanka.

In the rapidly evolving business landscape, many companies increasingly utilize third parties to perform essential functions, a practice known as outsourcing or business process outsourcing (BPO). This approach involves contracting out tasks such as payroll, IT services, finance, bookkeeping, and call center operations—some of the most common functions outsourced today.

In Sri Lanka, the BPO sector is one of the fastest-growing industries. According to the Association for Software and Services Companies (SLASSCOM), projected revenue is expected to reach $5 billion, with an estimated 200,000 jobs created by 2025. The growth of this industry is driven by a skilled workforce cost competitiveness, and strong government support (Sri Lanka Association for Software and Services Companies (SLASSCOM), 2021).

Expansion of Work from Home in Sri Lanka’s BPO Sector

During the COVID-19 outbreak in March 2020, most BPO companies in Sri Lanka strategically shifted to remote work, enabling their staff to work from home. To facilitate this transition, these companies provided their employees the necessary IT infrastructure and internet services. At the same time, they had to adapt their people management and service delivery strategies to ensure operational continuity. As of today, many outsourcing companies continue to offer work-from-home arrangements for their employees (World Bank, Impact of COVID-19 on Global Outsourcing Industry, 2020).

The benefit of working from home

There are key benefits to employers from the work-from-home facilities.

1.      Cost Savings – Reduce overhead and operational costs such as office rent, utilities, stationary, and maintenance

2.     Eliminate geographical limitations to access a talent pool

3.     Increase productivity by reducing distractions

4.     Improve employee satisfaction

5.     Reduce the impact of natural disasters or pandemic situations so businesses can ensure their continuity

6.    Improve technological infrastructure in non-urban areas

7.    Allowing innovation and streamlining 

Challenge to people management with Work from home

Communication Barriers

Remote work reduces opportunities for spontaneous face-to-face interactions, which can lead to communication gaps or delays in sharing important information. Collaboration also becomes more challenging, particularly when managing different time zones or accommodating diverse working schedules. Additionally, the heavy reliance on video calls and constant messaging can contribute to technology fatigue, leading to burnout and disengagement

Maintaining Team Unity and Culture

The casual conversations that happen in the office help build relationships, but these are less frequent in remote work, leading to isolation.It can be hard to keep a strong sense of company values and mission when everyone is working remotely, especially for new employees.

Work-Life Balance

Working from home makes it harder to separate work noise, which can affect productivity. and personal life, leading to overwork,  stress, and burnout. Some employees may need a better workspace or might face distractions like child care or 

Employee Engagement and Motivation

Keeping employees motivated without in-person interaction is tricky. Team-building and recognition need to be adjusted for virtual environments. Employees might feel out of touch with company goals or strategy, especially if communication isn’t clear and regular

Onboarding and Training

It’s harder to onboard new employees remotely, making it tough to ensure they get proper training, build relationships, and understand the company culture. Offering effective training to remote employees requires good use of online tools and keeping them engaged in learning.

(Harvard Business Review, 2021)

How can we overcome the above issues?

·        (Quixy Editorial Team, 2024)

      Virtual Team-Building Activities: Organize regular online team-building activities, virtual coffee breaks, or game sessions to promote bonding.

·        Wellness Programs: Implement mental health support through virtual counseling, yoga, and wellness initiatives.

·        Recognition and Rewards: Continue or enhance recognition programs by highlighting employee achievements during virtual meetings, and offer rewards like e-vouchers or gifts.

·        Clear Communication Channels: Ensure that the company uses effective and reliable communication tools like Slack, Microsoft Teams, or Zoom. Provide guidelines on how and when to use them.

·        Regular Check-ins: HR and team leaders should conduct daily or weekly check-ins with employees to address issues, offer support, and encourage open dialogue.

·        Effective Task Management Tools: Utilize project management tools like Asana, Trello, or Jira to keep track of tasks, ensuring clarity in deliverables and deadlines

·        Set Clear KPIs and Goals: Define specific, measurable, and realistic key performance indicators (KPIs) for all employees to align expectations.

·        Automated Performance Tools: Use performance tracking software that measures efficiency, call quality, and client satisfaction without being overly intrusive.

·        Regular Feedback: Foster a feedback culture where managers provide constructive feedback regularly through virtual one-on-one meetings.

·        Set Boundaries: Encourage employees to set clear boundaries between work and personal time. Discourage work after hours unless necessary.

·        Flexible Working Hours: Allow flexible work hours for employees where feasible, particularly for employees dealing with different time zones or personal responsibilities.

·        Encourage Breaks: Promote regular breaks and time off, ensuring employees take time to recharge.

·        Structured Virtual Onboarding Program: Create a structured, step-by-step onboarding process that includes virtual tours, introductions, and training modules.

·        Buddy System: Assign a “buddy” to new employees to guide them through their first weeks and help them adjust to remote work culture.

·        Exit Interviews: For offboarding, ensure exit interviews and knowledge transfer processes are carried out effectively, even in a remote environment. 

Conclusion

The shift to work-from-home (WFH) in Sri Lanka's outsourcing industry, sped up by the COVID-19 pandemic, has brought both benefits and challenges for managing people.

On the positive side, WFH has led to cost savings, a wider talent pool, higher productivity, and happier employees. It has also helped businesses stay strong during crises like natural disasters or pandemics.

On the downside, managing remote teams involves issues like poor communication, keeping team spirit and company culture alive, balancing work and home life, and keeping employees engaged. To tackle these challenges, companies need effective people management strategies. This includes using strong virtual tools, ensuring regular communication, and providing mental health support. They should also offer structured onboarding, ongoing feedback, and flexible work hours to help remote employees feel connected and motivated.

As the BPO sector in Sri Lanka continues to grow, companies that implement these strategies will not only adjust to the new work environment but also thrive by making the most of their remote workforce.

References

Sri Lanka Association for Software and Services Companies (SLASSCOM), “IT-BPM Industry Overview,” SLASSCOM, 2021.

Board of Investment (BOI) Sri Lanka, “Opportunities in Sri Lanka's BPO Industry,” 2021.

“Skilled Labor in Sri Lanka’s IT-BPO Sector,” Daily FT, 2022.

World Bank, Impact of COVID-19 on Global Outsourcing Industry, 2020

Deloitte, Remote Work in Outsourcing: Cost-Benefit Analysis, 2021

Harvard Business Review, The Challenges of Remote Work in Outsourcing, 2021

Quixy Editorial Team. (2024, October 22). Top 10 Tips to manage Remote Workforce for Better Productivity. Retrieved from WWW.Quixy.com: https://quixy.com/blog/tips-to-manage-a-remote-workforce/