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 In-app support? What is In-app Support?
In-app support is a convenient mode of online communication that allows your customers and prospects to interact with your customer service agents or bots within your app. It allows your customer service team or help desk to be anywhere your customers are – be it on their mobile devices, your website, or any other online device.
In-app support improves customer experience, resulting in higher customer satisfaction and retention. It also provides an easier way for customers to resolve their issues, submit their feedback, open a ticket, and more. How businesses can benefit from in-app support
In-app support helps businesses reduce customer friction, which is defined as anything that deters the customer from purchasing your products or services. With in-app support, customers’ concerns can be addressed and resolved as soon as they happen.
In-app support can also help in the following areas: Stronger brand awareness
Increased customer engagement
Reduced support costs
What is an Agent? What is an agent?
In the outsourcing industry, the definition of agents is a team of individuals who are tasked to provide customer services via different communication channels available in order to continuously provide positive customer experience. Agents are deployed to do inbound and outbound functions; both are essential in keeping the relationship between the business and its customers healthy and productive. Processes may involve customer service support, back office job support, advisory services, email management, virtual assistance services, website maintenance, marketing and promotional services, and the likes.
Agents are trained to render customer support that revolves around the company’s product or service. Ranging from office support to advisory services, agents are expected to provide the best possible alternative course of action for every problem and increase customer satisfaction by attending to their concerns being raised via different communication channels. Outsourcing agents
An agent of a BPO company earns an average of USD 4,000 per year in the Philippines, which is roughly USD 345 per month. Aside from that, agents can receive more through overtime pays and holiday pays. Labor laws in the Philippines require higher pay rates during these situations. In some cases, agents can work even with just a high school diploma, but applicants with college degrees have an advantage.
What is Customer Effort Score (CES)? What is Customer Effort Score (CES)?
Customer effort score (CES) is a powerful, single-item customer experience metric that measures the customer’s effort or ease of experience with the organization. It measures the amount of effort a customer has to go through in order to get a question answered, an issue fixed, a request fulfilled, or an item returned.
A CES survey usually asks the customers about their experience by rating the service on a scale of “very difficult” to “very easy,” by using a rating of “1 to 5,” or leaving a sentence and asking them what they feel about it, from “strongly agree” to “strongly disagree.” When to send a CES survey
CES surveys can be sent in the most effective form that works from you. It could be via email, feedback forms, phone calls, surveys, etc. However, the important thing to focus more on is when to send CES surveys. Here are some key times to send a CES survey: After a purchase
After a customer signed up for a free trial
After resolving a customer’s issue
After a self-service interaction with your company website