- Define what is an outsourcer?
- What are the major types for outsourcing?
- What is the difference between back-office and front office outsourcing?
- What is the difference between offshore, nearshore, and onshore outsourcing?
- What is LPO and KPO?
- Elaborate on the difference between inbound and outbound call centers?
- Do you think that BPOs and call centers are one and the same?
- What is Web-chat process and Voice process?
- What is the significance of ISO:9000 in the BPO industry?
- What is an Automatic Call Distribution and how does it work?
- How will you handle a customer-on-call when you do not know the solution to the problem?
- What are voice based BPOS?
- What do you mean by non-voice based BPOs?
- What are the different categories in BPO?
- What are the major sectors for Outsourcing?
- Why do companies Outsource?
- List some outbound call center services.
- List some inbound call center services.
- What are the services offered by BPO companies?
- What are the services that fall under non-voice support?
- What are the services that fall under voice support?
- What are different types of BPO?
- What is a horizontal BPO?
- What is a vertical BPO?
- What is reshoring?
- What is process-specific outsourcing?
- What is multi outsourcing?
- What is professional outsourcing?
- What is IT outsourcing?
- How does a BPO work?
- Abbreviate the following with respect to BPO terms?
- How you would approach customers in an inbound and outbound process?
- What do you think is the reason for India having so many BPO sector jobs?
- What are the common hurdles faced by Indian BPO companies?
- Why do you think English speaking proficiency is so important in the BPO industry?
In the BPO environment, the company that outsources their work to another firm is known as the outsourcer.
There are several types of outsourcing namely onshore outsourcing, offshore outsourcing and near-shoring. Professional outsourcing is the most popular one with IT outsourcing being the most profitable form of outsourcing.
When a company decides to outsource an internal process of its working, it is called back-office outsourcing. For example, if a company gave a third party accounts firm the responsibilities to manage its finances, it would be back office outsourcing.
Front office outsourcing involves customer handling services and BPO call centers from the contact point for customers of the company to address their grievances.
If a company contracts a third party enterprise to carry out a certain process for them outside their own country, then it is called offshore outsourcing. Example: American company outsources to an Indian company.
However, if the contract is given to an enterprise of a neighboring country, then it is referred to as nearshore outsourcing. Example: American company outsources to a Mexican company.
Sometimes the company that outsources and the company that accepts the assignment are in the same country. This is known as onshore outsourcing.
Legal Process Outsourcing is when a legal firm outsources a part of their legal work to another legal firm. On the other hand, Knowledge Process Outsourcing is a part of Business Process Outsourcing itself but only referred to assignments that have high technical, analytical, or subject-oriented knowledge. An example of KPO would be the outsourcing of software development to another company.
Inbound call centers are contact points where customers of the parent company call for assistance or review of the product or service they have availed. A good example of an inbound call center is when anyone calls a customer care center.
Outbound call centers are a method of lead generation, where callers call up leads from databases to create more business for the parent company. Credit card companies calling up potential clients with offers is an example of outbound call centers.
No, BPOs are the larger circle which include front office and back office outsourcing. Call centers are a part of front office outsourcing where the hired company comes in direct contact with customers. BPOs on the other hand, also include KPOs like software development, finance, and HR services among others.
BPO call centers come in contact with the leads or customers of the outsourcing company by two different ITEs solutions. Web chat process is when BPO contact centers communicate via chat heads on the website. In a voice process, communication between BPO contact centers and said customers or leads are done over the phone.
ISO:9000 is a standard regulating system that is based on the motto of planning, doing, checking, and acting cycle. In the BPO industry, it brings the motive of customer satisfaction as the final goal through this cycle and makes use of key performance indicators as a medium.
Automatic Call Distribution is a random process which is used in call centers to allocate incoming calls of customers to free agents on the floor.
The best way to handle customer calls where the best solution is unknown is to ask the caller to hold the line while connecting the call to the right person. In tech support, this could be a specific engineer and in case of call centers, it could be the overseeing manager or in-charge.
Voice based BPOs are those BPOs where you are required to talk to the customers. It may be for sales or support or service or anything else. The focus of business here is “Voice”.
Non-voice based BPOs are the BPOs which perform the outsourced work for their clients but do not need to interact with the client’s customers. The focus here is on “utilizing knowledge” rather than the “voice”.
- Administrative Department
- Purchase Department
- Selling Department
- Call Center
- Back Office
IT and Communication, Medical and health services, Insurance, Finance, Law and Jurisdiction are some of the sectors where majority of outsourcing works get done.
- It is cost saving.
- To focus on core activities.
- To get quality work done by the expertise in that domain.
- Lead Generation
- Customer Retention
- Customer Survey
- Appointment Scheduling
- Customer Service/Support
- Inbound Sales
- Help Desk Services/Technical Support Services
- Order Booking/Order Processing
- Transaction and Payment processing
- Accounts Management
- Document management
- Tele-marketing services
- Order Management
- Technical support
- Customer support services
- Chat Support Services
- Data Entry Services
- Email Support Services
- BPO services
- Call Center Services
- Healthcare BPO Services
- Legal Process Outsourcing
- Customer Service Outsourcing
- Inbound Service
- Outbound Service
- Telemarketing Services
- Technical Support Services
BPO services are generally categorize into horizontal and vertical BPO services.
Horizontal BPO is function centric outsourcing. The outsourcing partner or vendor specializes in specific functions across industry domains. Examples include procurement, payroll processing, HR, facilities management and ERP software maintenance.
A vertical BPO is all about functional services within core industry domains. These include healthcare, financial services, manufacturing and retail.
Companies earlier used to send manufacturing jobs from the US to areas like China and India for low-costs. However, manufacturers began to realize that offshoring production services to Asian countries was not as cost-effective. So this realization led US-based companies to start bringing their offshore manufacturing jobs back home. This process is referred to as reshoring. Some companies are going even further and doing insourcing —which is the opposite of Outsourcing.
Manufacturer Outsourcing is a common outsourcing service. Companies that involve production of goods need to understand ‘What is outsourcing?’ This is mostly quite industry-specific. Companies which lack economies of scale take it up to compete with larger enterprises.
Multisourcing applies to any business area, but is commonly used when referring to IT outsourcing and IT services. It was introduced by a market technology research firm in 2005 and is most frequently used by large enterprises, where IT operations and technology infrastructure are contracted out to multiple vendors. This outcome-focused outsourcing offers better visibility into real project status information.
Professional outsourcing refers to specialized services such as accounting, legal, purchasing, information technology (IT), IT or administrative support etc. It is a very common area of outsourcing as a service. Professional outsourcing leads to substantial cost savings as core businesses only need to pay for services actually provided while accessing high quality resources. This reduces overhead costs significantly.
IT outsourcing is a type of professional outsourcing. Over the past few decades, IT outsourcing has become one of the most common services. Most businesses seek technology related resources or subcontract outside an organization for an informational technology function. Businesses these days use IT outsourcing for functions like infrastructure and software development, maintenance and support.
In a BPO, the complete business process gets transferred from an external service provider to a third party. Sometimes, parts of a business function or the entire piece get contracted out. Such a third party helps improve the service provider’s customer experience as well as render an excellent customer service.
- BPM – Business Process Management
- BTO – Business Transformation Outsourcing
- KPO – Knowledge Process Outsourcing
- EPO – Engineering Process Outsourcing
- ESO – Engineering Services Outsourcing
- MBPO – Medical Business Process Outsourcing
- RPO – Research Process Outsourcing
- HRO – Human Resource Outsourcing
In an outbound customer approach, the customer must be hooked with the product or service benefits in their life, whereas an inbound customer approach requires a path to the quickest and most effective solution for the customer’s problem.
One of the main reasons why so many corporations abroad outsource their work to India is because of the standardized skill, large labor base, and low costs. This makes it easier for the corporations who achieve their ends in quality at a much lesser price.
India has one of the largest populations of skilled labor that can communicate effectively with clients of the outsourcing company. It is also quite easy to understand the Indian accent for foreigners, which is not true for many other countries.
One of the biggest hurdles that any BPO company has to face is the low retention rate of employees. Since most BPO companies hire freshers at the lowest level, a lot of time is dedicated to training each new entrant. The quick shift of these freshers to other sectors or companies creates a constant need for training and results in low productivity.
Speaking the English language with the right accent for a specific country, and a good flow is an absolute necessity in call centers. The reason for this is call center employees work as contact points for customers of the outsourcing company that is located in countries like Australia, UK, USA, New Zealand, and Canada.
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