What is What is business process outsourcing? What is Business Process Outsourcing BPO?
Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.
Some of the usual outsourced business functions are the following. Payroll
In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.
With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.
Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees. How does Business Process Outsourcing work?
Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.
It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.
Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing. What are the benefits of business process outsourcing?
There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include: Cost savings
Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India. Global market
Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries. Global presence
At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area. Flexible workforce
BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm. Leverage skill
Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT. Focus
Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider. Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.
BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include: Big enterprise
Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber Medium-size businesses
A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines. Small business and entrepreneur
It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines. What are the different types of BPO?
The type of business process outsourcing can be characterised by their specialisation, location, and size. Generalist or specialist BPOs
Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.
Meanwhile, some specialise in certain verticals such as the following. Legal process outsourcing
Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.
Knowledge process outsourcing
Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives. Location
Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages. Size of BPO
The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people. Functions of business process outsourcing
Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include: Finance and accounting
Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss. Healthcare
Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries. Creative and content
Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content. Tech, IT and development
IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries. Sales & customer support
Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase. Marketing
BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way. Talent and HR
Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management. Administration
Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions. Supply chain management
Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes. Top BPO companies in the world’s top outsourcing hubs
A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.
Check out the top BPO companies in several outsourcing destinations below. Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services
With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.
Good thing advisory services such as Outsource Accelerator is there to help them.
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.
Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.
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What is a Customer Relationship Management (CRM)? What is a CRM?
Customer Relationship Management (CRM) refers to the creation, implementation, and evaluation of strategies in managing customer relationships. With CRM, a business can deal with customer problems and complaints to increase customer satisfaction.
CRM is either a technology, a strategy, or a process, depending on how management views its purpose.
Most often, companies integrate technology into a CRM process for a more efficient outcome. Creating a system to manage customer interactions can provide many benefits to a company.
CRM, which refers to technology, refers to the use of cloud storage, a computer system, or an application to monitor progress. CRM as a strategy identifies the philosophy of the business regarding customer relationship, satisfaction, and interaction. CRM as a process may integrate the use of technology based on the company’s strategy or philosophy.
With the proper use of these three different CRM categories, the company can create a powerful tool to aid them in dealing with demanding customers. Most companies rely on a CRM to track customer engagement to their product or service. How can CRM help a business?
A CRM system can give a clear overview of a company’s clients. With its help, a customer’s previous history with the business, order status, and customer service issues can be easily seen by the service representative.
Additionally, using a CRM platform enables the management of inquiries across various so that companies can efficiently serve their customers without starting from scratch. CRM in BPO
Customer relationship management is one of the main tasks delegated in outsourced companies. Commonly in call centers, CRM enables companies to attract and convert leads, retain customers, and give better services through business process outsourcing.
This also helps them organize workflows and processes in customer service while saving costs and resources. Outsourcing CRM
Outsource Accelerator provides you with the best outsourcing companies in the Philippines, where you can save up to 70% on staffing costs.
We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.
What is Escalation? What is escalation?
Escalation is when the first-hand customer service representative was not able to resolve a complaint raised by the customer. Complaints are then raised to tier-2 agents who can give better solutions to the problems. These tier-2 agents have better knowledge about the matter.
The most common recipients of escalations are team supervisors. Therefore, team supervisors are expected to be experts on the processes and procedures of the company that they are representing.
Customers tend to be on the verge of their emotions when seeking escalations; thus, the senior agent who will handle the escalation should always be prepared. Professionalism and being courteous are required when dealing with irate customers. What is an escalation process?
An escalation process is out in place to clarify the boundaries and channels of decision-making throughout an organization. It helps sales representatives in solving a customer’s problems quickly and with clarity.
Designed around the whole customer service operations, this process outlines a path that allows the customer service reps to make decisions that reflect the rules of the management.
It minimizes the time it takes to escalate decisions that are beyond their scope of authority.
An efficient escalation process helps minimize service delays, drives employee accountability, and saves both the customer’s and rep’s time and energy.
With a defined system on how to deal with client escalations, customer support agents can act faster and reduce the severity of the situation. Managing escalations
Escalations are expected to be controlled or restrained and are considered essential in the Business Processing Industry (BPO) industry.
The best customer service outsourcing companies should be brimming with fully-equipped professionals who can handle complaints, and find immediate resolutions for the client.
One should expect to work with people who have been given proper training and handled by experienced team managers who can brush off escalations easily and with the highest level of restraint and professionalism.
Outsource Accelerator has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn more about managing an outsourcing team and ensuring that escalations are handled properly.
What is Help Desk Support? What is help desk support?
Help desk support is incorporated with Information Technology (IT). It is technical support provided for customers who have issues and problems such as hardware and software related.
Organizations that have their help desk support usually track the technical issues until further resolutions have been provided. Help desk support typically uses software to deliver fast assistance, such as email support, chat support, and inbound calling.
One popular type of help desk support is in the form of a call center company. A call center has many call center agents or whom we usually refer to as call as customer service representatives.
These call center agents ensure straightforward resolutions in any form of issues such as technical issues, shipment-tracking, placing an order, and such. These are considered as help desk support. Help desk support duties
The typical workload of a help desk support team varies depending on the needs of the company and its clients. The majority of help desk representatives are the first point of contact when issues arise within a business’ products and services.
A ticketing system is common in everyday help desk operations so that each member of the team can address and close out each problem that is being raised by a client.
In general, a help desk support employee is responsible to do the following. Respond to incoming IT issues
Maintain computer systems and act as support the system is down
Perform configurations and upgrades in computers when needed
Assist with the onboarding of new employees
Track and list all equipment, software, and tech licenses Outsourcing help desk
It is a must to provide exceptional help desk support coupled with excellent communication skills. A good command of the English language is a great advantage for a help desk support agent.
The team should also be fully equipped with the product knowledge, and who are prompt to answer customers’ inquiries. An outsourced help desk support team has a hands-on team management system that ensures quality assurance and both non-voice and voice help desk support.
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing help desk support.