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 Business to Business (B2B) Call Center? What is Business to Business in Call Center?
A business-to-business or B2B call center helps secure existing customer connections with frequent check-ins and service inquiries. If any difficulties occur with the new buyer, they will be referred to the sales team of the company for timely handling. In this way, a communications partner serves as a buffer for a company.
The B2B call center can also provide an initial point of contact for all the customers. This strategy will improve their level of customer service and receive good impressions from the clients. Benefits of business to business in call centers
Customer service and loyalty are factors that any company strives to achieve the highest degree. It is essential that programs are built to offer reliable support, and that they often cover a variety of ways for reaching a broader client base.
Here are some of the advantages of business-to-business in call centers: Create an improved campaign plan to meet goal requirements
Supply future clients with a favorable experience
Use the latest technologies without it having to pay the extra costs.
Successfully transforming leads to business potential
Call center companies catering for B2B communications require powerful software to provide smooth contact between agents and clients.
What is Lead Generation? What is lead generation?
Lead generation aims to get the attention of inbound, or outbound, prospective customers and turn them into leads - creating interest to avail a product or service. Lead generation mostly uses digital means and has been undergoing increasing changes in the past years to due the advancement of more sophisticated online systems.
Some examples of lead generators include live events, online content, online advertisements, email marketing, and social media. With the trend, the buying process has dramatically changed; thus, industries need to find new tactics to reach buyers and create clamor to entice them. With lead generation, enterprises focus on being found instead of finding customers through advertising and email blasts. Industries have now learned to build continuous relationships with customers. Outsourcing lead generation
Generating leads is essential in transitioning the buying journey of a site visitor to becoming a delighted customer. Lead generation is considered to be an inbound marketing strategy which involves a wide range of campaigns, strategies, and tactics, aiming for a significant number of attracted audience to be sales-qualified leads. As a visitor starts to show interest in your company's product and service with the provision of valuable content, the conversion is more organic. Lead generation then stands as to what it is made to be: a natural way of initiating and warming up potential prospects of the business to be key buyers.
Outsource Accelerator provides you access to great lead generation experts 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 outsourcing lead generation.
What is a Net Promoter Score (NPS)? What is a net promoter score?
The Net Promoter Score (NPS) measures customers in terms of their willingness to help promote or recommend a particular product, which may include other services as well. This gauges customer satisfaction as well as loyalty about a company's product. The customers are given surveys that ask how they would rate a particular product or service to their friends or colleagues. They may choose between a scale of zero to ten. According to the ratings given by the respondents, they will be classified into three categories. These are the promoters, passives, and detractors. Net promoter score for companies
The NPS is calculated by deducting the detractors' percentage from the promoters percentage, which is the generated result or score in between negative one hundred and one hundred. The detractors are those whose scores are six and below. They may not find the products and services to be useful may not buy from the brand again.
Passives are those customers who gave a seven or an eight, and maybe quite happy about the product, but they do not find it to be excellent. These are the people who may have the possibility of switching to another company or brand if the other company may produce something better. Finally, the promoters are those customers who have either a nine or a ten about the product or services offered. These people are fans and could be purchasing from the same company repeatedly.
Outsource Accelerator has over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn more about managing an outsourcing team and ensuring that NPS is consistently high.