BPOs have arguably played a salient role in lowering energy costs for customers. Most retailers in Australia’s competitive markets have outsourced—and many have offshored—key functions, with cost arbitrage contributing to sharper pricing.
However, there is an emerging challenge for BPOs not just to contribute but also remain relevant in the new retail energy environment.
Retailers are facing sharper cost pressures, heightened compliance scrutiny, and the need to support customers through a complex energy transition—all the while chasing better CX and onboarding new tech. At the Australian Energy Week, these challenges will surely be highlighted.
For years, BPOs have been seen as cost-reduction partners—offering headcount flexibility with a layer of basic energy retail subject matter expertise. But today’s landscape has changed.
That puts BPOs under a different kind of spotlight.
Retailers will continue in the short term to rely on BPOs to keep the legacy model running—efficiently, reliably, and cheaply. That model isn’t going away overnight.
But they are asking a bigger question: Can BPOs be post-transformation partners—not just delivery partners? Or do they think beyond BPOs?
Tech-first. AI-first. Digital-first.
Retail strategies are increasingly focused on reducing headcount-supported work—to lower costs, lift compliance, reduce customer effort and onboard new energy products.
The Credibility Gap
BPOs are responding by increasingly positioning themselves as tech-enabled partners. But many still rely on third-party alliances to deliver those solutions; at the same time trying to protect headcount margins. The credibilty is missing. That creates a complex three-way relationship between Client – BPO – Tech Vendor.
Tech vendors by themselves often lack BPO context, delivery experience, or interest in long-tail operational support.
And that’s the opportunity.
If BPOs can integrate tech, operations and headcount into a single offer, the client relationship gets simpler—and stronger.
Is it easy? No.
Is it possible? Absolutely.
Just as the retailers are thinking transformation and acting on it; BPOs need to adapt by articulating solutions-not just intent and discrete capabilities and partnerships.
At Operations Optimisation Advisory, I intend to work with BPOs who want to move beyond traditional models—helping them design, validate, and deliver value-aligned strategies that integrate tech, operations, new energy product support and customer impact.
I’ve been on the client side. I’ve built and governed these partnerships in real-world environments. And I am aiming to partner with BPOs to close that strategy-to-execution gap. And remain relevant in the new retail energy world.
If you’re a BPO looking to evolve your positioning and win the next generation of energy retail clients—let’s talk.
#BPO #EnergyRetail #CX #Transformation