BPO Industry Flashcards
A business practice whereby a company hires an outside
service provider to carry out a specific function. It uses outside vendors or subcontractors to complete certain tasks related to their business operations.
Business process outsourcing (BPO)
These are subsets of BPO companies. They are primarily focused towards offering customer-service of an organization and resolving inquiries and concerns. They are often associated with telephone services.
Call Centers
What are the key differences between call centers and BPO companies?
- Scope of Service - call centers –> customer service; BPO –> offer services other than those under customer care
- Expertise and Specialization – BPO–>wide range of services
- Ownership and Integration – Call centers–>in-housed or outsources; BPO–>outsourced to providers outside the company
What are the services offered by BPO companies? (6)
- Marketing
- Consulting
- Accounting
- Data Processing
- IT services
- Customer Service
What are the types of BPO? (2)
- Back-office BPO
- Front-office BPO
(type of BPO) Business outsourcing employees for internal functions or non-client-facing operations such as IT, Accounting, HR, and supply chain.
Back-office BPO
(Type of BPO) Business outsourcing employees for external functions or client-facing operations such as marketing and customer service.
Front-Office BPO
What are the Most Common Models for BPO?
- Global Outsourcing Model
- Offshoring Model
- Staff-Leasing Model
(BPO model) Linking resources and enterprises from those abroad in addition to those already in the home country. It provides services through resources from different continents. This benefits not only the client and the BPO country and also the country that provides the outsourced services.
Global Outsourcing Model
(BPO Model) Instead, a corporation disperses throughout several countries in this model, with the primary organization in charge of employee training. They split work across the branches and assign a portion of their workload to other companies.
Offshoring Model
(BPO Model) With this business process outsourcing (BPO) approach, a company outsources not an entire team or organization, but a subset of employees or a portion of their work. Businesses usually choose this option when they need the services of highly trained professionals, but not on a full-time basis.
Staff-Leasing Model
What are the pricing models commonly used by BPO companies? (4)
- Per-hour/per-agent rate
- Output-based/Fixed-fee rate
- Transaction-based Pricing
- Performance-based Pricing
What are the advantages of BPO?
- Lower costs
- Higher efficiency
- Focus on core business functions
- Global expansion
What are the disadvantages of BPO?
- Security issues
- Overdependence on the BPO company
- Communication problems
- Unforeseen costs
It was the Philippines’ first contact center
Accenture Global Resource Center
He introduced the Philippine Economic Zone Authority
Former President Fidel V. Ramos
It offered government incentives such as tax breaks and support for infrastructure development. PRIMARY FUNCTION –> Assist in attracting foreign investment.
Philippine Economic Zone Authority (PEZA)
Who are the Key players in BPO worldwide?
- Accenture
- Cognizant
- International Business Machines (IBM) Corporation Big Blue
Key BPO players in the Philippines
- Accenture
- Teleperformance Philippines Inc.
- Sitel Philippines Corporation
What are the key regulations that impact BPO operations?
● General Data Protection Regulation (GDPR)
● Payment card industry data security standard (PCI DSS)
● Anti-money laundering (AML) and Know Your Customer (KYC) regulations
● Outsourcing Regulatory Compliance (ORC) guidelines
● Sector-specific regulations
It is a legal framework that sets guidelines for gathering and using personal data from people living inside and outside of the European Union (EU). BPO firms need to put in place robust data protection procedures, such as getting express consent before processing personal information, ensuring data security, and giving people control over their data.
General Data Protection Regulation (GDPR)
It is a widely recognized set of guidelines and practices designed to improve the security of transactions made with payment cards and safeguard cardholders from identity theft. BPOs that deal with credit card data are required to adhere to strict security rules. Maintaining a secure network, regularly testing and monitoring systems, and implementing robust access controls are some of these laws.
Payment card industry data security standard (PCI DSS)
Due diligence processes must be put in place by BPO organizations in order to confirm the legitimacy of their clients and customers. They have to carry out in-depth background checks, keep an eye on
transactions for any suspicious activity, and notify the appropriate authorities of any questionable transactions.
Anti-money laundering (AML) and Know Your Customer (KYC) regulations
These guidelines cover a number of
topics, including employment laws, data localization, data protection, and intellectual property rights.
Outsourcing Regulatory Compliance (ORC) guidelines
What are the Philippine Laws for the BPO Sector?
- Republic Act 10844: The Department Of Information And Communications Technology Act Of 2015
- Republic Act Of 10173: The Data Privacy Act Of 2012
- Republic Act No. 7916: Special Economic Zone Act
- Republic Act No. 11165: Telecommuting Act
What are the regulatory bodies in the Philippines? (7)
- Securities and Exchange Commission (SEC)
- Bureau of Internal Revenue (BIR)
- Department of Trade and Industry (DTI)
- Local government unit (LGU)
- Social Security System (SSS), Home Development Mutual Fund, PagIBIG, and
Philippine Health Insurance - Bangko Sentral ng Pilipinas (BSP)
- Philippine Economic Zone Authority (PEZA)
What are the risks associated with BPO? (5)
- Privacy risk
- Quality Risk
- Political and Economic Risk
- Legal Risk
- Communication Risk
