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 examplesThe business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples include:
Big enterpriseFacebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber
Medium-size businessesA medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.
Small business and entrepreneurIt 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 BPOsBusiness 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).
LocationBusiness 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 BPOThe 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 outsourcingCollectively, 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 Top BPO companies in the world's top outsourcing hubsA wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of the employees.
Check out the top BPO companies in several outsourcing destinations below:
Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) servicesOutsource 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 Telephony?
What is a Telephony?Telephony is defined as the field of technology that involves the development and application of telecommunication services between distant parties through the use of appropriate equipment, whether voice, fax, or data. It is also linked to the invention of the telephone.
Telephony, as a term, is also used to refer to any computer network systems, hardware, or software, that carry out the roles usually performed by telephones.
Types of telephonyTelephony allows people to carry out long-distance communication, and it is most commonly used to refer to telephone systems. However, there are other types of telephony:
Traditional telephony Voice Over IP (VoIP) and internet telephony
Mobile telephony
Faxing telephony
What is Voice Response Unit (VRU)?
See IVR.
What is the Voice Response Unit (VRU)?The Voice Response Unit or VRU is an automatic telephone answering device composed of hardware and software that enables a caller to navigate across a set of pre-recorded messages.
When call centers started to transition to digital in the late 1990s, businesses began investing in computer telephony integration (CTI) with VRU systems.
Today, many call center companies use voice response units to handle the front end of inbound calls. VRUs usually play recorded greetings to callers and then present them with menu options. Interactive voice response (IVR) is another term for VRU.
Importance of voice response unit (VRU)Voice Response Units help consumers communicate with the company’s host device using a keypad or voice recognition, through which services can be accessed via its interface.
VRU systems may respond to additional direct users with pre-recorded or dynamically produced audio including how to proceed.
Voice response units can maximize customer service and increase operational performance. In addition, VRU systems can be used for smartphone transactions, banking transfers, services, shopping orders, utilities, travel details, and weather conditions.
A correctly deployed voice response unit could be a key asset that helps both consumers and call centers.
Benefits of a voice response unitHere are some benefits you can expect when using a VRU.
Cost savingsThe voice response unit is one of the most considered useful for every business. You can save money on recruiting agents to handle minimal inquiries and routing incoming calls through using VRU to offer some customer service aspects and provide automatic call distributors (ACD).
Consistency and professionalismBusinesses can ensure a high degree of consistency and professionalism by incorporating voice response units into your system throughout the process.
Customers will receive messaging and the tone you wish to engage every time they call if you have pre-recorded messages placed on your system.
Excellent customer service experienceCustomers are put on hold while waiting for agents to answer the call. By answering calls immediately, voice response units can help relieve your consumers' frustration.
Even if there is a high call volume and a long wait for a live agent, your VRU may enhance customer service and reduce staff anxiety by informing callers of projected wait times or providing a callback.
Personalized customer service Many customers increasingly prefer the convenience of self-service in every brand they go to. Voice response devices can help consumers with basic or common questions by immediately answering them or directing them to the appropriate agent.
Further, you can set your VRU system to identify and welcome such individuals by name.
Data and information gatheringYou can use your voice response units to collect data and information from callers if it does not breach any data regulations. This can help with future marketing and segmentation of your client base.
Further, voice response units help identify common reasons for calls, allowing you to allocate more resources to that area if necessary.
What is Average Talk Time?
What is Average Talk Time?Average Talk Time (ATT) is the length of time the consultant spends talking to clients. This allows the staff to estimate how much time they can set aside for talk-time per call. This metric is often mistaken for Average Handling Time (AHT). Identifying the distinction between the two metrics is very critical.
Average time talk does not require time spent on hold as opposed to Average Handling Time. Ideally, this does not involve the time spent by the caller on hold. If the average time talk is too big, service providers may not respond to further requests. On the contrary, if the total speaking time is too short, the call center will be able to field further requests. As a result, lower average time talk increases client’s loyalty.
Importance of average talk timeAverage talk time is one of the most essential customer insights. Average talk time represents the exposure of the clients to the call center agents.
The average talk time aims to assess the day-to-day operations of the administration of call center service providers. The index is measured and analyzed regularly. It is also vital to maximize the total speaking time to minimize additional expenses and balance the services offered to consumers.
Independent
