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 Customer Satisfaction Rating (CSAT)? What is customer satisfaction (CSAT)?
Customer Satisfaction Score (CSAT) is a popular key performance indicator that tracks customer satisfaction. The process involves a survey question or a set of questions. The customers answer by indicating their level of satisfaction. The most popular scale is 1 to 10, with 1 being the least satisfied and 10 as the most satisfying level.
The result gives a business the necessary output whether or not to improve customer service right there and then. However, the possible ambiguity might be a disadvantage, especially if a customer is dissatisfied with the service. Why is CSAT important
CSAT tells a business about how satisfied their customers are with their services. From this, they can also understand the needs of their customers through feedback and comments they give in each survey.
The best timing to use this methodology is after-sales, before the renewal of subscription, and after customer support. These times are crucial especially for repeat customers. With this, a business should have first-hand knowledge of its customer satisfaction. A simple interview or a feedback form after a sale would do. CSAT in outsourcing
Customer satisfaction score might be the simplest metric but it’s a powerful tool for all businesses. It closes the loop on first customer interaction and helps businesses move on to the next level.
Computation is quick and easy. You add up all the ratings and divide the total score by the number of respondents. Most likely, you’ll get a percentage. Get your customer satisfaction score a notch higher by outsourcing your customer service team. Check out Outsource Accelerator’s extensive list of outsourcing companies in the Philippines.
What is Quality Assurance? What Is Quality Assurance?
Quality Assurance (QA) is any structured method to avoid mistakes and errors in services or manufactured products. Quality assurance involves logistical and procedural tasks performed in the quality chain to ensure that the specifications and expectations for a product, service, or operation are followed.
Businesses and organizations use quality assurance to guarantee that the product is designed and delivered with proper procedures. QA is vital for manufacturers and companies to avoid problems when supplying products or services to the customer. It also provides oversight of the quality of raw materials, assemblies, products and components, manufacturing and maintenance facilities, processing and testing procedures. Importance of Quality Assurance
Quality is an essential factor to consider in any product and service. That is why manufacturers and service providers are continually looking to improve their products or service quality. The primary purpose of a QA strategy is to establish customer trust and the reputation of the organization or company; while at the same time enhancing work processes and performance and allows the company to compete favorably with others.
QA needs a large commitment in people and systems. Doing quality assurance can be time-consuming that may influence the arrival of products. With a few exceptions, the downside of QA is more a prerequisite for a necessary step to be taken to ship a quality product. Without quality assurance, there will be none to guarantee the legitimacy of the qualifications.
What is Community Forum? What is a Community Forum?
A community forum is an online meeting space created by a person or an organization, so that the members can engage, congregate, ask questions, discuss interests, share knowledge, and have interactions about a range of topics.
If it’s being related to customer service, community forums are online self-service customer support spaces where customers can find fixes or resolutions to their issues by asking other members of the forum, and without the need to communicate with a customer service agent. Purpose of online community forums
Community forums can be utilized by companies and brands for a variety of purpose, including the following: Customer support
Word of mouth advertising