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 PBX? What is the meaning of PBX?
In the Call Center industry, PBX (Private Branch Exchange) is a private telephone network used internally and externally by companies and organizations. It offers a lot of customization features and ease of use for both agents and clients alike.
Communication, both within teams and with consumers and clients, is a vital aspect of every company. With this, a feature-rich, advanced PBX phone system can help them greatly. Users of the PBX phone system can connect internally and externally using various communication channels such as Voice over IP, ISDN, or analog. Why does a call center need PBX?
Call centers, whether big or small, should provide an adequate and reliable telecommunications infrastructure. One of the most common telecommunications systems used by call centers is the IP PBX system.
Here are some reasons why PBX is helpful to BPO companies: You can set custom tunes or any other message with the use of the PBX system.
PBX helps the device to know if a callback has been planned by a call center agent. This feature would assist the agent to recall the said scheduled return call.
Much control regarding ongoing calls with call management capability
What is Power Dialer? What is a Power Dialer?
A Power Dialer is an automated calling technology that dials a phone number right after completing a call. Automated dialing means that call center employees don't spend much time manually inputting contact details, giving them more time to spend talking to clients.
The power dialer enables the agents to concentrate on live contacts instead of manual dialing. When an agent becomes eligible, the machine will automatically dial the subsequent contact records depending on the ratio. Importance of Power Dialer
One of the primary purposes of a power dialer is to optimize the inbound and outbound calls. Power dialer will help you design your whole day. All you have to do is pick the best calling practice you want to do and press the Start button.
Here are the other benefits of using a power dialer in the call center industry: Power Dialer helps you to set up a call-to-agent ratio so that you can enjoy the benefits of automatic dialing while maintaining control over dialing speeds.
Using the power dialer, call centers spend less time dialing and spend much more time connecting to live prospects, which results in more revenue and increased profits.
Power Dialer provides a range of dialing modes, and companies can pick the right one to suit their campaign specifications. Dialer accounts for time zones and list penetration and can be tailored to suit the market and regulatory needs.
What is Customer Service Representative? What is a customer service representative?
A customer service representative is an individual who interacts with customers on behalf of the company, usually to address their concerns. They are the front lines of service providers in customer support. They know first-hand how satisfied and dissatisfied customers are with the services they availed.
A CSR possesses a lot of skills they need to effectively deliver customer service. This includes good communication and problem-solving skills, quick wit, and interpersonal skills. Other terms may include customer service associates, and customer service advisors or consultants. Duties of a customer service representative
Their duties depend on what type of customer service they handle, whether inbound or outbound. Inbound CSRs are the ones who handle incoming calls, chats, or emails from customers, attend to their concerns, do basic troubleshooting, and help them navigate a website or app.
Outbound CSRs, meanwhile, deal mostly with lead generation, billing reminders, appointment confirmation, and market surveys. Unlike inbound CSRs, they are the ones who reach out to customers for these concerns either through cold calling or emails. Customer service representative in the Philippines
Outsource Accelerator provides you access to great customer service representatives that you can outsource from the Philippines starting from $6 per hour, 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 customer service outsourcing.