What are BPO companies and how do they work?

What is BPO (Business Process Outsourcing)?

Business Process Outsourcing is the process of contracting an external company for a specific business function. The outsourcing company may do things like manage customer service or payroll processing, so that the client organization can focus on their core business.

The process of outsourcing a company’s business processes is not as simple as just hiring someone to do work for you, it requires a team effort from both the outsourcer and the outsourcing company.

The client company must be able to clearly define what the business process is, how it works, and why they are outsourcing it. They also need to create a detailed list of the processes that will be outsourced, and what each process entails.

The outsourcing company must create a detailed plan for how they will handle the business processes being outsourced, as well as how they will communicate with the client company. They must also create a detailed list of all employees who will be working on the project, and what their responsibilities are.

Functions most commonly outsourced include:

– Customer Service

– Data Entry/Data Processing

– Call Center Services

– Accounting and Financial Reporting

The most common reasons for companies to outsource business processes include:  to reduce costs, to improve efficiency and productivity, to increase flexibility in staffing levels, or because the process is not a part of their core business.

The cost savings for outsourcing are usually quite substantial. Because of this, many companies are choosing to outsource business processes.

Benefits of using BPO:

1. Reduces costs of operations by decreasing fixed costs and increasing efficiency through specialization, economies of scale, and elimination of redundant processes.

2. Increases flexibility to quickly adapt to changes in the marketplace.

3. Enhances customer service through rapid response to changing needs and requirements.

4. Increases employee productivity by reducing the amount of time spent on non-value added processes (e.g. data entry, manual billing).

5. Enables the organization to focus on core competencies and strategic priorities by outsourcing non-core activities (e.g., payroll processing).

6. Avoids the need to invest in expensive and time-consuming IT systems (e.g., payroll system).

7. Reduces costs related to employee turnover and recruitment of new employees

What is BPO Call Center?

Call centers are the most common example of business process outsourcing.

A call center is a department in a company that handles incoming calls from customers, clients or the general public.

There are two types of call centers:

1. Inbound call center (also known as a “customer care center”) handles incoming calls from customers, clients or the general public who want to know more about a company’s products or services.

2. Outbound call center (also known as a “telemarketing center”) makes outbound calls to potential customers, clients or the general public to promote a company’s products or services.

The main advantage of a call center is that it can be located anywhere in the world, and all calls are handled by employees who work from home.

Therefore, companies can hire the cheapest labor in any part of the world, and still offer a 24-hour service to customers.

Call centers are also used for:

1. Providing information on products, services and company policies.

2. Taking orders for products or services over the telephone.

3. Answering questions about a product or service that have been sold in-store, or over the Internet.

4. Providing technical support for products or services that have been purchased from a company, either online or in-store.

5. Fulfilling orders for products or services that have been purchased online.

6. Processing credit card information for purchases made over the telephone or through an Internet website.

7. Providing customer support for products or services, either by telephone or through an Internet website.

8. Fulfilling orders for products or services that have been purchased online, either directly from a company’s website, or from a third-party Internet website.

9. Processing credit card information for purchases made over the telephone or through an Internet website.

10. Providing customer support for products or services, either by telephone or through an Internet

Should I hire a BPO Company?

If you are a small-medium business and do not have the expertise to handle your IT infrastructure, then outsourcing is one of the best options.

Business Process Outsourcing (BPO) has become a very popular option for organizations of all sizes.

Contact us for our range of BPO services.