BPO is the full form of Business Process Outsourcing. This means that when a company is unable to do all its work on its own, then they seek the help of other companies that have mastered that task. By doing this, they get great benefit in their work. They get their work in time and their cost is also normal. If we talk about these processes or work, then customer service, technical support, billing administration etc. are mainly in it.
Often BPO officers are given work of monitoring and they often work in the back office itself, which includes many tasks such as helping customers, billing clients and purchasing, etc. In a BPO operation, a company mainly provides its contract to a third party vendor to perform their back-office tasks. It has often been found that large organizations consider this process as money saving tactic because by doing this they can pay more attention to their core tasks. With this, they outsource the work of back office and handle the processes of front office themselves.
A BPO executive has a lot of tasks to do but the most important task is to pay more attention to the satisfaction of his client or customer.
The concept of BPO company was first started by Ross Perot when he founded Electronic Data Systems (EDS) in 1962.
EDS used to say to its prospective client, “Even though you are familiar with the designing, manufacturing and selling of the product, but we are well aware of the managment of information technology. We can sell you the information technology that you need, but in return you will have to provide us some monthly fees for this service. But the thing to note here is that this service should be for at least 2 to 10 years.
Need of outsourcing
The major and the most important reason for which outsourcing is implemented, is a significant and massive cost reduction. It reduces the cost of the tasks that a company requires.
Let’s see a list of BPO benefits:
- Focus on core business
- Reduced overhead
- Outside expertise
- Efficient and cost reducing
- Increase company flexibility
- Increase in revenue etc.
Difference between BPO and Call Center
BPO is an organization which is responsible for performing a process of another business organization. It is used to save the cost or gain the productivity. On the other hand, Call center is a part of client’s business. It involves handling telephone calls. It is used to solve customer’s complaints and requests over telephone calls.