What is Business Process Outsourcing (BPO)? What is Business Process Outsourcing BPO?
Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift in focus, companies improve their current processes that 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. How does Business Process Outsourcing work?
When a business engages an external specialist to manage and operate some of its internal processes, it's referred to as business process outsourcing. 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: significant savings of up to 70%, leveraging the lower global salaries Global market: access to a bigger employment pool of talent Global presence: having operational across the globe increases trade opportunities Flexible workforce: reduces internal local labour and employment compliance obligations Leverage skill: leveraging the skills of other specialist companies Focus: enables the client company to focus on their core functions
Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples 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 hem full time, 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 generalist, in that they offer a full range of professional services, although some specialise in certain verticals (ie accounting, or animation). Location
Business process outsourcing typically operates form 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: operational, technical and specialist functions Healthcare: various functions of the backend of the healthcare and health-insurance industries Creative and content: everything from post-production of Hollywood movies to newspaper and website content Tech, IT and development: network management, web and app development and maintenance Sales & customer support: ongoing sales and customer operational support and delivery Marketing: ongoing marketing, communication and branding activities Talent and HR: externalising the management of company HR, recruitment and compliance Administration: general business administration and operational activities Top BPO companies in the world's top outsourcing hubs
A wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of 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
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 4,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.
What is a Customer Relationship Management (CRM)? What is a CRM?
Customer Relationship Management 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 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. 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 the best outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ 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. 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 highest-level of restraint and professionalism.
Outsource Accelerator has over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ 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 who have their help desk support usually tracks the technical issues until further resolutions have been provided. Help desk support typically uses a 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 a help desk support. Outsourcing help desk
It is a must to provide exceptional help desk support coupled with excellent communication skills. A good command for 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 customer’s inquiries. An outsourced help desk support team have 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 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing help desk support.