Jens Erik Gould, founder and CEO of nearshore BPO provider Amalga Group, has noticed a growing gap in business process outsourcing. Companies want better results from their providers, but many still use outdated models that focus only on cost and task completion.
For years, this approach made sense. Clients assigned specific tasks, while providers were measured on speed, accuracy, and cost. Providers did the work as instructed, without asking if the process could be improved. But now that AI is handling more mundane tasks and clients are expecting more value, Jens Erik Gould says it’s time to reconsider the old way of doing things.
The next phase of BPO will depend on providers using their frontline experience to help clients improve their business, not just process tasks faster.
What Do Frontline BPO Teams Know That Clients Don’t?
They know where the work actually breaks and why it keeps breaking. The shift is already visible. Deloitte's 2024 Global Outsourcing Survey found that 80% of more than 500 executives planned to maintain or increase outsourcing investment, while 83% were already using AI in outsourced services. However, only 25% reported lower costs or better service from AI-powered outsourcing, suggesting technology alone does not guarantee better outcomes.
Jens Erik Gould believes that frontline teams hold important insights that cannot be replaced. They hear the same complaints, notice where customers drop out, and spot problems before they show up in reports. This day-to-day knowledge often stays on the floor instead of reaching decision-makers.
That information is increasingly valuable. An IBM Institute for Business Value and Oxford Economics study of more than 1,700 chief data officers found that 78% considered proprietary data a top strategic priority, while 84% said unique data products had created significant competitive advantages.
Gould has seen this firsthand across Amalga Group’s nearshore contact center and back-office teams in Monterrey and Mexico City. “Two teams with identical skills and identical tools will produce very different results,” he says. “The difference is almost never capability. It is whether the client gave the provider permission to question the process.”
When Should a BPO Relationship Stay Transactional?
When the scope is narrow and the outcome is unambiguous. There is a strong case for keeping outsourcing relationships transactional. Companies outsource certain jobs to gain access to expertise, predictable costs, and clear accountability. A contact center provider, for example, may not know enough about a client's broader goals or challenges to suggest changes outside their area of expertise.
If providers take on too much responsibility, roles can become unclear. Too many suggestions and changes may lead to more meetings, slower decisions, and confusion about who is in charge.
Sometimes a buyer needs a provider that executes exceptionally well rather than another adviser.
Why Isn’t Great Execution Enough Anymore?
Because hitting every target still leaves the underlying problem in place. Doing the job well is important, but it should not be the only measure of value. A contact center might hit every target and automate responses, yet still spend time on problems that could have been avoided.
This difference becomes even more important as automation grows. As AI handles more routine customer service, the real value of BPO will come from understanding and solving the tougher problems that remain.
AI can spot patterns in customer engagements, but frontline teams know the reasons behind those patterns. By working together, they help clients see what is happening, why it is happening, and how to fix it. For Jens Erik Gould, this is what leads to tangible results.
How Can Clients Redesign a BPO Relationship Around Outcomes?
Clients don’t have to relinquish control to move to this model. They just need to make a few practical changes. For starters, establish a way for frontline insights to reach decision-makers. Providers should also track common complaints, repeat calls, and other issues, then share these patterns in regular meetings with clients.
Make sure incentives match the results you want. Accuracy, speed, and cost remain important, but providers should also be measured by how well they reduce repeat calls, customer effort, and avoidable work. It’s hard to reward improvement when the payment model only rewards doing more work.
It’s also critical to let providers point out problems and suggest changes (as long as they have the data to back them up). Clients still make the final call, but providers should be encouraged to speak up when they see opportunities for improvement.
Jens Erik Gould believes that taking more ownership also means accepting more responsibility. Providers must be ready to question how things are done, explain their suggestions, and admit when they are wrong. Good judgment matters because it comes with real responsibility.
In practice, that means three changes:
Build a channel that carries frontline insight to decision-makers on a set cadence.
Measure the provider on reduced repeat contacts, customer effort, and avoidable work — not only on volume, speed, and cost.
Give the provider standing permission to challenge the process, with data to support it.
Moving from task-based outsourcing to a more advisory relationship also creates additional governance requirements. Buyers need to define decision rights, monitor service quality and establish controls for data access, AI use, cross-border processing and business continuity. Security certifications can support due diligence, but clients should still verify their scope, issuing body and validity, particularly when providers handle financial, healthcare or other sensitive information.
What Is the Next BPO Product? Judgment.
Outsourcing started with a simple goal: get specific work done well and at a lower cost. That is still important. But now, with AI and new client demands, providers need to offer more.
Jens Erik Gould sees substantial opportunity in using frontline knowledge to fix customer pain points and recurring problems. “The most valuable thing a nearshore team can give a client is not a lower rate — it is the reason the same work keeps coming back,” says Gould. To do this, clients must let providers question the process rather than just follow it.
The future of BPO will likely favor providers who are trusted to ask why work is being done and who are not afraid to admit when they are wrong.
Frequently Asked Questions About Nearshore BPO
What is nearshore BPO?
Nearshore BPO is business process outsourcing to a nearby country rather than a distant one — for U.S. companies, most often Mexico. Amalga Group operates nearshore teams in Monterrey and Mexico City, both in Central Time, with substantial overlap with U.S. business hours.
How is nearshore BPO different from offshore outsourcing?
Time-zone overlap, cultural alignment, and visitability. A client of Amalga Group can leave Texas in the morning and walk the operations floor in Monterrey the same day, which is not practical with offshore delivery centers.
What should a company measure in a BPO relationship?
Accuracy, speed, and cost remain necessary. Jens Erik Gould argues buyers should also measure repeat contacts, customer effort, and avoidable work — the volume a better process would have removed.
About Jens Erik Gould
Jens Erik Gould is the Founder and CEO ofAmalga Group, an American-owned nearshore BPO and outsourcing provider headquartered in Dallas, Texas, with delivery centers in Monterrey and Mexico City. Amalga Group builds and manages dedicated nearshore teams for legal, financial services, technology, telecom, retail and healthcare companies — including legal intake, legal call center, records retrieval, contact center and CX, back-office, and finance and accounting operations. Amalga Group says certain nearshore engagements may deliver cost savings of approximately 40–50% compared with comparable U.S.-based staffing, depending on the role and operating model. Amalga Group says it maintains controls intended to support HIPAA-regulated work and can enter into business associate agreements where required. Prior to founding Amalga Group in 2021, Gould worked in the financial sector, contributing his expertise to firms including Apollo Global Management, according to the company.