Business Process Outsourcing (BPO) companies and contact centers are highly susceptible to security breaches. That’s because they handle huge amounts of sensitive customer data, personal information, and contact details. That makes them extremely soft targets.
Over the last four years, cyber threats have increased exponentially for BPOs. A PwC study found that nearly 40 percent of BPO firms experienced a cyberattack in 2023. As per the study, 60 percent of BPO executives believe that their organization is at risk of a cyberattack. Another data by Digital guardian found that 68 percent of BPO companies are contemplating cloud computing to bolster data security.
In such a scenario, BPOs must invest in robust technologies and systems to protect them from increasing cyberattacks. Leveraging sophisticated contact center software such as HoduSoft’s HoduCC can increase the data security of BPOs.
This blog post describes the challenges faced by BPOs in securing data, why data security is extremely critical for BPOs, and what the right contact center software can do for BPOs. Read on and thank us later.
Challenges Faced By BPOs In Securing Data
BPOs face a wide range of challenges when it comes to securing their customers’ data. Here are some of them.
1. Compliance Requirements
Regulations such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), the California Consumer Privacy Act (CCPA), and the Payment Card Industry Data Security Standard (PCI-DSS) impose strict requirements on handling sensitive data. Non-compliance not only leads to hefty fines but also tarnishes the reputation of BPO firms.
2. Remote Work Environment
For cybercriminals, remote agents are a soft target. After COVID-19 pandemic remote working became the new norm. With the majority of customer service agents working from home, it made it extremely easy for hackers and cybercriminals to infiltrate the individual agents’ networks and gain access to all sensitive data and information they have.
3. Complex IT Infrastructure
A majority of BPOs depend on complex IT infrastructures and securing such complex infrastructure can be extremely challenging. Even though many BPOs try to learn more about the complex IT infrastructure they rely on, it still becomes difficult for them to know every crucial thing about the infrastructure and that makes them more susceptible to cyber-attacks.
4. Lack of Robust and Reliable Communication Solutions
The biggest challenge a majority of BPOs face is the availability of robust and reliable communication solutions such as sophisticated contact center software. It’s not that reliable and reputable solutions are not available but in such a crowded market, it becomes challenging to choose the right one from the rest. That’s why BPO companies should spend quality time on finding high-quality contact center software and ask for free demos to experience compatibility.
Why Data Security Is Indispensable for BPOs?
Data security is extremely important for BPOs for the following reasons:
1. Data Breach
It’s hard to quantify the actual costs of a data breach. It goes much beyond the sum of ransoms demanded by the cybercriminals. If you consider a BPO’s damage control efforts, investigation costs, lawsuits, and penalties, then the thought of a potential data breach is going to give BPOs nightmares. Apart from the tangible costs, the costs associated with loss of trust and reputation, halt in operations for some days and decreased productivity also make data breaches extremely expensive.
2. Legal and Regulatory Compliance
Would you be surprised to know that non-compliance with data protection laws can result in heavy fines and legal repercussions? One data released by DLA Piper revealed that GDPR regulators issued nearly USD 1.2 billion in penalties between January 2021 and February 2022. As per Statista, BPO companies were penalized over 1.67 billion euros as of May 2023 because of non-adherence to general data processing principles.
3. Need to Safeguard Intellectual Property
In the BPO sector, protecting Intellectual Property (IP) is extremely important. That’s because it entails the handling of a wide range of proprietary data and trade secrets. If BPOs are unable to safeguard their proprietary information, it can result in legal disputes. That’s why BPO companies must protect their intellectual property.
5. Competitive Advantage
At a time when cyber attacks are increasing at a much faster rate than ever before and not many BPO companies are taking concrete steps to counter them, focusing on data security can give a massive competitive edge. It can help BPOs to not only set them apart in a competitive market but also to position them as secure entities on which clients can rely.
How Sophisticated Contact Center Solution Can Protect BPOs?
High-quality contact center software such as HoduSoft can safeguard BPOs from cyberattacks by offering a wide range of advantages such as:
1. Robust Encryption
Did you know that using strong encryption can save you USD 1.4 million on average for every cyberattack? As per one study by Ponemon Institute, that’s the amount of money an average business can save by encrypting their data. Sophisticated contact center solutions such as HoduSoft’s contact center software can empower BPOs to encrypt their confidential data and prevent hackers and cyber criminals from decrypting confidential data.
2. Multi-Factor Authentication
Multi-factor authentication (MFA) is the use of more than one form of identification. An example of this is two-step verification. A report released by Microsoft found that MFA can block 99.9 percent of automated cyberattacks. As per National Cyber Director data MFA can prevent 80 to 90 percent of attacks. Sophisticated contact center software such as HoduSoft’s HoduCC uses 2 Factor Authentication (2FA) to safeguard its communication systems from cyberattacks.
3. Regular Updates
Regular updates of contact center software can make the system more robust and protect it from cyberattacks. Equipped with security patches, sophisticated contact center solutions such as HoduSoft’s BPO contact center software automatically update the communication system and protect it from new security threats.
4. Compliant With Data Regulations
The right contact center software can help BPOs to be compliant with local and international data regulations. HoduSoft’s contact center software is engineered to be compliant with relevant data protection regulations such as GDPR, HIPAA, PCI-DSS, or CCPA.
6. Integration with Third-Party Systems
Sophisticated contact center software can easily integrate with third-party systems or applications, which can enable BPOs to implement secure APIs and authentication mechanisms. By doing so, BPOs can prevent unauthorized access or data leakage.
All in All,
At a time when cyberattacks are increasing by leaps and bounds, using sophisticated contact center software can help BPOs to safeguard their customers’ personal and confidential data. That’s why it’s extremely crucial for BPOs to leverage sophisticated contact center software such as HoduSoft’s HoduCC call/contact center software to prevent cyberattacks.