Fundamentals of Business Process Outsourcing 101

Fundamentals of Business Process Outsourcing 101  01 OVERVIEW OF BPO INDUSTRY  What Is Business Process Outsourcing (BPO)? Business process outsourcing (BPO) is subcontracting various business-related operations to third-party providers. Originally used in manufacturing to manage supply...

Fundamentals of Business Process Outsourcing 101  01 OVERVIEW OF BPO INDUSTRY  What Is Business Process Outsourcing (BPO)? Business process outsourcing (BPO) is subcontracting various business-related operations to third-party providers. Originally used in manufacturing to manage supply chains, BPO now spans various industries, including healthcare, asset management, energy, pharmaceuticals, e-commerce, and others, to enhance efficiency, reduce costs, and leverage specialized expertise and advanced technology  What is BPO Used For? Organizations contract with BPO vendors for two main areas: Back office operations: They include payment processing, information technology services, quality assurance, etc. Front office operations: They include marketing, sales, customer relations, and grievance redressal.  What is BPO Used For? In many cases, organizations outsource one or more functions. For example, instead of outsourcing all HR functions, the company will outsource just the payroll processes. Over the years, the BPO industry’s expanded considerably and offers a wide range of services and functions to organizations.  Types of BPO BPO companies can be divided into several types based on their location: Onshore outsourcing: When an organization hires a service provider that is located in the same country. It is also called domestic outsourcing. Nearshore outsourcing: When an organization hires a service provider in a neighboring country. Offshore outsourcing: When an organization hires a service provider in a different country. It is also called offshoring.  Different types of BPO services 1. ITES 2. KPO Another two common KPO Information Technology Enabled In Knowledge Process Outsourcing, subsets are – LPO and RPO. Services is a type of BPO that handles IT solutions over the service providers are hired to provide advanced expertise around LPO (Legal Process Outsourcing) internet. ITES usually handles these a particular business process. LPO comprises a range of high-level types of IT services: legal work such as: Technical Support KPO services providers handle Service Desk Analyst highly-skilled jobs like: Drafting patent applications Production Support Analyst Creating legal agreements Accounting and financial analysis Performing legal research Legal processes Web Design RPO (Research Process Outsourcing) Content Creation RPO is concerned with research and data analysis processes. Data Analytics Investment Research Primary and secondary market research  Common BPO services 1. Data entry 2. Customer support 3. Marketing 4. Human resources 5. Finance & Accounting  Commonly Outsourced BPO Roles and Responsibilities CUSTOMER SERVICE TELEMARKETING INFORMATION TECHNOLOGY External call center representatives This is a front-office BPO function We live in a digital age. It is no wonder that handle customer issues and where call center agents sell the demand for IT solutions is growing complaints and keep the line open products or services over the phone. significantly, particularly for small 24/7. businesses. WEB DESIGN AND DIGITAL/CONTENT DEVELOPMENT DATA SECURITY MARKETING A functional and well-designed This is one of the most crucial BPO This is one of the most common BPO roles website is crucial because it roles and responsibilities because it and responsibilities; it is at the forefront of differentiates you from rivals at a involves protecting the generating sales, especially for e-commerce. glance. This business function confidentiality of your company’s Brands need blog posts, landing pages, requires specialized skills, especially intellectual property and customer email campaigns, and videos. in the initial part of designing a data. website’s visual layout.  Commonly Outsourced BPO Roles and Responsibilities ACCOUNTING HUMAN RESOURCES RECRUITMENT Finance and accounting are popular HR is an integral part of the Hiring and recruitment are two BPO roles and responsibilities, from business, especially as it grows. essential roles, especially since many simple bookkeeping to financial When starting, it is in the businesses choose to stay remote, planning and tax consultations. organization’s best interest to which makes both functions more outsource this BPO role and challenging. responsibility. However the service provider must know specific labor codes and laws. WE TURN CHALLENGES INTO OPPORTUNITIES! 8 Essential Skills for Excelling in the Dynamic BPO Industry 1. Curiosity and Continuous Learning 2. Empathy for Yourself and Others 3. Critical thinking and Creativity 4. Collaboration and Communication 5. Flexibility and Adaptability 6. Time Management 7. Digital and Data Literacy 8. Leadership Skills 10 Common Challenges of the BPO Industry 1. Changing Political Scenarios Citizen protests, wars, falling economies, etc. can force governments to pass certain bills that prevent outsourcing to other countries. 2. Exceeding Customer Expectations Various social media channels and increasing competition in the market have resulted in increasing customer expectations to the roof and proved to be quite a challenge for the BPO industry. 3. Shoestring Budgets The budget is a big barrier for the BPO industry. Typically, outsourcing organizations are expected to deliver the greatest results at the lowest possible cost. They are pushed to make the best use of limited resources.  10 Common Challenges of the BPO Industry 4. Health Concerns Most outsourcing organizations are located in locations with multiple time zones, thus resources may be available at all times of the day. This might cause substantial health risks for employees and significantly diminish their efficiency. 5. Customer Attrition At some point throughout the project, the client may simply terminate the agreement and pass over the job to your competitor for many reasons. The cost of such a rapid transaction termination can be enormous, affecting most BPO organizations significantly. 6. Scarcity of Talent One of the most difficult aspects of BPO recruitment is finding the proper competent people to work in the sector. Just a small percentage of graduates are qualified and prepared to work in the BPO industry.  10 Common Challenges of the BPO Industry 7. Employee Attrition The companies are not able to convincingly retain their employees for long and thereby suffer huge losses every time they have to train new employees. 8. Communication Channels People have moved on to social media channels to send messages apart from the usual calls and emails. This proves to be quite challenging for the BPO companies to decide which channel to concentrate on when interacting with their clients. 9. Frequent Disruptions Call traffic management, poor internet connection, unclear phone lines, power shutdowns, etc. may result in disrupting the various processes. BPO companies usually work on a 24/7 schedule and are expected to be available at all times.  10 Common Challenges of the BPO Industry 10. Brand Equity Brand building is an important task performed by the HR professional. This is one of the common challenges for HR managers. They are expected to provide adequate training and a good working environment, so when they leave the company they are the brand ambassadors of the company. If the employees are unhappy, it can easily lead to negative word-of-mouth, thereby leading to diminished brand equity. PICTURE YOUR SUCCESS! Struggles and obstacles are just a stepping stone to your ultimate goal. Stay determined and remember that success is always within reach!  What is Voice Customer Service? All phone interactions throughout a customer’s journey are voice processes, including initial interactions, after-sales services, troubleshooting, and technical support. Agents must possess excellent communication skills and proficiency in the customer’s language to provide quality voice contact center services.  Types of Voice Customer Service Inbound Calls Customer-initiated calls, known as inbound calls, are pivotal to businesses. Whether from marketing efforts or seeking support, incoming call centers require sales reps and service staff to answer customer queries satisfactorily. Ensuring quality service is vital to customer conversion and long-term retention. To maintain this level of service, performance metrics, including CSAT score (customer satisfaction score), NPS (net promoter score), ASA (average speed to answer), FCR (first contact resolution), and CES (customer effort score), are critical.  Types of Voice Customer Service Outbound Calls Outbound calls refer to calls made to customers or prospects for sales, marketing, follow-ups, notifications, and surveys. Outbound calling campaigns are initiated with one or multiple messages in an outbound contact center. If these calls are unexpected, they are known as “cold calls.” To increase the likelihood of better contact rates, it’s recommended to warm up cold calls by sending an email, SMS, or other messages to prepare the recipient for the upcoming call and to provide context for why they are being contacted.  What is Non-Voice Customer Service? Non-voice customer service, which includes chat, SMS, and email, is becoming increasingly popular. Live chat is the most preferred method of communication, with 41% of customers favoring it over other options. Surprisingly, only 32% of customers prefer phone support. Regarding billing concerns, SMS is the medium for 68% of consumers. Providing non-voice customer service requires excellent writing, product knowledge, and problem-solving skills. Back-office work may require specialized skill sets rather than communication abilities. Businesses must adapt to these evolving customer preferences to excel in customer service.  Types of Non-Voice Customer Service Email Support Email and ticket support are important non-voice channels that many businesses utilize. By offering these options alongside chat support, more customers can have their preferences met. Generating tickets helps bridge communication gaps and allows for troubleshooting and solutions even during off-hours when a live chat or call support is unavailable. This 24/7 support is crucial for customer satisfaction.  Types of Non-Voice Customer Service Chat Support Live chat and chat support function similarly to inbound calls, with incoming messages relating to new purchases or technical support for previous purchases. Omnichannel contact center services also allow customers to ask queries through social media messages. Customers often prefer chat support for its speedy response times. To boost efficiency, contact centers use chatbots alongside human staff.  Types of Non-Voice Customer Service Back Office Work Back-office work encompasses a wide range of outsourced services that businesses require. Managing accounts and databases, staffing, HR, and data entry are among the most common back- office duties.