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
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