Call Center Outsourcing5 Minute Read
What is a BPO and How Can It Improve Your Customer Experience?
What is a BPO?
- BPO stands for Business Process Outsourcer
- If you are interested in taking your customer experience to another level, you may consider partnering with a Business Process Outsourcer (BPO).
- BPOs can handle various parts of a client’s operations to help improve functions like customer service and foster long-term brand loyalty. And most interestingly, the services they provide may offer cost savings and opportunities for more revenue.
What Can a BPO Do?
As a third-party service provider,
- BPOs typically manage call centers where customer inquiries are handled. But that’s just the tip of the iceberg.
- BPOs can also handle back-office tasks, like processing orders, administrative duties, talent and HR needs, accounting, billing, payroll, data management, quality assurance, market research, and supply chain management.
- Additionally, they can assist with front-office functions like sales and marketing, creative and content, tech support, dispatch, and customer service. They operate as extensions of your team, with specific expertise in your industry. They also offer data and insights that provide invaluable support.
What are the Benefits of a BPO?
At the outset,
- BPOs may provide global access, 24/7 coverage, and flexibility to staff up or down depending on high-impact service times.
- They can also improve the speed and efficiency of how customer issues get resolved, which can positively impact your satisfaction ratings in a significant way.
- Cost savings is a primary consideration. With a BPO, you don’t have to worry about hiring and training temporary staff in time to give the same level of service. BPOs handle the salaries and benefits of their employees, so your business can save on full-time labor expenses. They also hold regular training to keep those expert agents on top of current issues.
- Furthermore, BPOs can manage IT/tech needs, upgrades, data, and security. Most importantly, they free up your team to focus on your core business objectives. 57 % of companies use BPOs to concentrate on foundational issues, operations, and activities.
What Are the Different Types of BPOs?
It’s not a one-size-fits-all methodology. BPOs can operate as multichannel or omnichannel, onshore or offshore, or shared vs. dedicated. Every size business can benefit from this responsive, scalable business model. Outsourcing customer service for large companies is a boon during busy times, including the holiday season when call volumes increase. BPOs service the needs of large, medium, and small-sized companies and are defined by their size, location, and specialization. There are advantages for small to medium businesses (SMB) or small to medium enterprises (SME), such as transferring overflow inquiries to an outsourced call center without impacting current employee workloads. Big enterprise BPOs manage the needs of companies with over 250,000 people, while medium-sized BPOs work with those with 500 to 5000 employees. A small business BPO would range between 1-500 employees.
How Does a BPO Work or Support a Company?
The first thing to do before engaging a new outsourcing partner is to identify your needs. Where do you need the most help to create the most significant impact? Find a provider that makes sense for your business. And once you have engaged your BPO partner, define how you will measure success, and then be sure to monitor the results.
How BPOs Impact Businesses
The BPO industry employs millions worldwide and generates over $250b annually. It is predicted to increase at a 9.1% compound annual growth rate from 2022 to 2030. The top industry segments that utilize BPOs include finance, healthcare, tech, human resources, and accounting.
BPOs can not only reduce impacts on your current employees. They can also help move the needle on corporate strategic goals, reducing costs and increasing your competitive advantage. You get higher revenues and more satisfied customers. Sounds like a winning proposition. For a deeper dive on BPOs, check out our Ultimate Guide to Outsourcing Customer Service by Company Size.
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Vice President, Information Technology
Published on November 14, 2022
Published on November 14, 2022