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 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 Social Media Virtual Assistant? What is a social media virtual assistant?
Social media is playing a significant role in any business’ marketing and sales strategy – now more than ever. How you manage your business’ social media pages can help flourish or tarnish your brand’s reputation.
This is where the services of a social media virtual assistant comes in. Social media virtual assistants are social media experts that will solely work for your brand remotely. They offer a wide range of services, including developing a social media strategy and curating your channels. Responsibilities of a social media virtual assistant
Social media management is not just about posting on your Facebook page and leaving it at that. Social media has become a very efficient marketing tool, and a social media virtual assistant can be tasked with an array of responsibilities to promote your brand and appeal to customers.
Here are some of the responsibilities of a social media virtual assistant: Set up your social media presence
Write copy and blog posts for all your social media channels
Reply to and manage comments
Interact with your brand’s followers, answer questions, and deal with reviews
Create surveys and other promotional strategies Benefits of hiring a social media virtual assistant
Hiring and training can be too expensive and will take too much time that can be spent on other essential tasks. By hiring a social media virtual assistant, you'll get to save up on hiring costs and other expenses like office space, desktops, and internet connection. Social media virtual assistants are also equipped with the right experience and skills for the job, so training will be very minimal.
By delegating your social media management to a qualified virtual assistant, you’ll get to enjoy more time in your hands for more essential tasks leading to your business’ growth and development.
What is Resolution Time? What is Resolution Time?
Resolution time is the average amount of time it takes for a customer service provider to resolve a customer’s issue, request, or concern. It is the amount of time from when the client creates an incident report or files a ticket, to when the problem or cause of concern is actually solved.
This metric is typically measured through business hours instead of clock hours, due to the company's customer service organization down time. It may vary depending on the company though, as more and more businesses are investing in 24/7 customer service teams. Resolution time vs. response time
These two terms are typically interchanged, but they have one distinct difference. Like mentioned above, resolution time is the average amount of time it takes for a customer service provider to resolve a customer’s issue, request, or concern.
Response time, on the other hand, refers to the average amount of time it took for a customer service provider (automated bots not counted) to address the client’s incident report and let them know that they’re currently working on it.
What is Shared Services? What is shared services
Shared services refer to the delegation of specific tasks to a part of the organization or company. This team might house inside the main office, near it, or offshore. For instance, a company based in California may set up an IT department in another location such as New York to handle the entire IT for their teams.
Shared services is another way to save on costs by taking advantage of the cheap costs and resources offshore. It is also a strategic way to expand their operations and attract a different market aside from the local ones. Shared services and outsourcing
Shared services and business process outsourcing share a few similarities. For one, they delegate a general task to a team. Second, both of it can be onshore, nearshore, or offshore. Third, they help the business save on costs while increasing their profitability. The only difference is that outsourcing involves a third-party company. After a certain lock-in period, companies can decide whether to absorb their offshore team or keep it co-managed.