What is Domestic Outsourcing? What is Domestic Outsourcing?
Domestic outsourcing, or more commonly referred to as onshore outsourcing, is a strategic form of business process outsourcing where a company outsources its business functions to a third-party provider located in the same country where the business is headquartered. Back office functions like customer service, IT operations, and accounting are usually the roles outsourced to these third-party providers.
Domestic outsourcing keeps a company’s core team focused on their main responsibilities, and it reduces the worry for additional employees’ equipment, benefits, office space, and so forth. It also helps save on costs, while hiring an outsourced dedicated team with the right educational backgrounds for the job. Domestic outsourcing vs offshore outsourcing
Offshore outsourcing is the complete opposite of domestic outsourcing. It is the other form of strategic solution that refers to when a company outsources its business functions to a third party provider located in a far-off country, most commonly Southeast Asia.
The top outsourcing destinations in Asia include the Philippines, India, China, Singapore, Malaysia, Thailand, and Singapore.
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 List Penetration? What is List Penetration?
List penetration refers to a measurement used throughout the call center companies to calculate the proportion of the entire list that has reached a final resolution. The list penetration rate calculates the number of prospect records closed according to the overall number of campaign records. It emphasizes the precision and data of the call list.
The higher the penetration rate of your list, the better. It indicates that you're running on clean records. You can always check the details if the list of the penetration rate is lower than the expected result. Looking at your details will show if your agents call cold or inactive leads.
Monitoring the list penetration may help minimize the challenges that your organization may encounter from the risks. Embracing proper security practices will protect your company. You will resolve the prioritized risks and regularly monitor your market risk exposure by taking a risk-based approach to cybersecurity. How to measure list penetration rate?
Calculating the list penetration allows the management to assess the scale of the future demand for their offering. If the overall value of the competition is high enough, the new entrant should be persuaded that it can achieve a fixed proportion of the total number of future buyers.
The list penetration rate is simple to calculate if you know the scale of your target market. To compute, divide the number of clients you have by the size of the target market to measure the penetration rate, and then multiply the figure by 100.
The formula looks like this: “Penetration Rate = (Number of Customers ÷ Target Market Size) × 100”
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
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