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Business Process Outsourcing (BPO):

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Business Process Outsourcing (BPO) is the unit that is an external IT-service provider, managing and conducting certain designated operations on behalf of a company. BPOs are bound by contracts also known as SLAs to provide the desired level of service and results. The quality and result are measured via performance metrics at all levels. BPOs mostly conduct non-primary operational tasks like customer support, outbound calling, upselling, and surveying. 

Operations Performed by BPOs

There are some dedicated tasks that are always outsourced to BPOs. Here is a brief list of them:

  1. Customer Service
  2. Outbound Calling
  3. Inside Sales 
  4. Human Resources Management
  5. Payment Processing
  6. Quality Assurance
  7. Customer Relationship Management
  8. Upselling/Cross-sell

 

Types of BPOs

BPOs can be segregated based on their operating location.

1 Onshore Outsourcing: This is basically domestic outsourcing where the service provider is located in the same country as the vendor.

2 Nearshore Outsourcing: This is when the service provider is situated in a neighboring country.

3 Offshore Outsourcing: As the name suggests, it is when the provider is in a distant country than that of the vendor.

 

Difference between BPOs and Call Centers:

While the terms are often used interchangeably, they do not have the same meaning. Call centers primarily are focused on providing customer service and customer relationship-related issues. BPOs are involved in broader activities like payment enrolling, human resources management, customer engagement, customer service, sales, accounting, and more.

 

Advantages of BPOs:

There are multiple benefits to working with BPOs. It has been a thriving industry for several years for a reason.

1 Cost Control:

Primary benefit determines BPOs to be a cost-efficient option. A particular task can cost more internally whereas when they are outsourced to a third party, the cost reduces, and results are bound by a contract. Often outsourcing a task to the cost-intensive country is better for the vendor than spending heavily on overhead charges.

2 Focusing On Critical Tasks:

Getting roped in with customer management, customer complaints, surveying, and other tedious tasks will hinder administrative growth. When an enterprise is free from these tasks, they can focus on their R&D, product improvement, innovation, and other objectives that are critical to its growth.

3 Global Expansion:

When expanding to different countries, outsourcing your tasks to a BPO comes with an added benefit. The locals who run the BPO will have a linguistic advantage, allowing you to offer a better experience to your end-user. It also opens up more opportunities for penetrating newer regions.