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Business process outsourcing (BPO) is not just about call center agents answering customer inquiries and resolving product or service issues. They are on the frontlines and a vital part of an organization comprising various areas.
If you seek a deeper understanding of BPO beyond the role of its agents, this article is for you.
This blog discusses the scope of a typical BPO organization. It explains essential elements, such as organizational structure, process optimization, technology integration, and management and leadership. Additionally, it explores cross-functional collaboration, training and skill development, quality assurance and metrics, and trends in BPO.
Keep reading to learn more.
The Broader Scope Beyond BPO Agents
What is BPO’s broader dimension besides its agents? Service providers are mainly engaged in outsourcing. This practice involves managing the client company’s delegated non-core or secondary operations, such as customer service, sales support, administrative functions, and technical assistance.
Subcontracting (another term for outsourcing) allows the client company to reduce operating expenses and achieve higher efficiency, partly due to cost-effective BPO agents and their expertise in handling outsourced assignments.
While BPO agents are vital to outsourcing, consider the other essential elements that lead to successful third-party services.
Organizational Structure
BPO agents are part of the service provider’s operational group. Above them are the team leaders (TLs) or supervisors who guide and support them and provide performance feedback. Meanwhile, the shift managers oversee the group to ensure operations run smoothly.
Other departments are located beyond the production area, where BPO agents, TLs, and shift managers operate. These include:
- Leadership team: chief executive officer/president, chief operating officer, chief financial officer, and chief human resources (HR) officer
- Support functions: staff and officers from HR, finance and accounting, marketing and sales, and administration units
- Quality and performance management: quality analysts and performance managers;
- Technology and automation: information technology (IT) managers and automation specialists
Process Optimization
One factor contributing to BPO agents’ effective performance is process optimization. This is an organized effort to maximize efficiency and streamline a BPO provider’s business processes for its clients.
Process optimization aims to improve efficiency, output, and cost-effectiveness while sustaining or enhancing quality service levels and customer satisfaction.
Here are some critical aspects of process optimization in BPO:
- Finding areas for improvement. This includes reviewing existing workflows, understanding pain points, and gathering data on process outcomes.
- Mapping out workflows. This involves outlining the current processes to envision a specific service’s stages, inputs, and results.
- Reducing redundancies. Six Sigma principles are typically used in BPO process optimization to minimize delays and ineffective procedures.
Technology Integration
Technology integration is an essential component that leads to the excellent service of BPO call center or contact center agents. This incorporates digital tools and platforms into BPO center operations to increase output and efficiency, accelerate processes, and deliver high-quality service.
Check out some aspects of technology integration:
- Digital platforms. These platforms include enterprise resource planning (ERP) software, customer relationship management (CRM) systems, and privately owned BPO management applications.
- Cloud networks. Many service providers use cloud computing to store and process data. Cloud-based solutions enable them to be scalable and accessible to meet client needs and demands.
- Multichannel communication: Omnichannel platforms integrate different communication channels, such as social media, phone, chat, and email, for seamless customer support and engagement.
Management and Leadership
The service provider effectively manages its BPO agents, virtual assistants, customer service representatives, and other professionals, which is vital to providing first-rate customer service and achieving client satisfaction.
Examine the essential areas of effective management in BPO:
- Leadership and direction. Executive and middle-management levels determine the vision and define objectives. They outline a BPO strategy to achieve the company’s goals and requirements.
- Client focus. Effective management entails an in-depth understanding of client needs and goals. The BPO provider forms and maintains client relationships by meeting expectations and requirements.
- Talent management. Successful management means hiring and training the proper personnel. BPO managers build a positive work culture and environment to promote employee morale and satisfaction.
Cross-functional Collaboration
Cross-functional collaboration involves several departments or functional groups within a third-party organization cooperating and coordinating on assignments. The collaborative effort is meant to accomplish similar objectives, optimize procedures, improve service quality, and handle issues across departments.
Below are some essential characteristics of cross-functional collaboration:
- Shared objectives. Collaboration revolves around shared goals, such as improving client satisfaction, developing the latest services, or boosting efficiency.
- Open communication. Transparent interaction is promoted, and cross-functional teams regularly share information and feedback to stay current.
- Diverse knowledge: Different individual skills and expertise are combined, producing creative solutions and solving problems accurately.
Training and Skills Development
Third-party vendors provide training and skills development that equip BPO agents and other professionals with the competencies, abilities, and knowledge to perform their duties efficiently and meet client expectations.
The following are vital aspects of BPO training and skills development:
- Onboarding training. The service provider orients new hires to familiarize them with the organization’s policies, values, and culture. Recruits are also trained to properly handle their specific roles.
- Soft skills development. This includes enhancing the employees’ communication, problem-solving, customer service, and time management skills.
- Product and service knowledge. The BPO provider trains agents to understand the client’s services, products, brand, and industry to properly represent them.
Quality Assurance (QA) and Metrics
QA and metrics guarantee that client services satisfy set quality and performance criteria.
On the one hand, QA practices involve systematically evaluating, assessing, and improving processes and BPO agents’ performance. It includes:
- Process compliance
- Error prevention
- Quality audits
- Feedback and coaching
- Root cause analysis
- Continuous improvement
On the other hand, metrics give quantitative data for gauging and monitoring different elements of outsourcing operations. It includes:
- Service-level agreements
- Quality metrics
- Productivity metrics
- Cost metrics
- Employee performance
- Customer feedback
- Efficiency metrics
- Data security metrics
QA and metrics are vital in maintaining service quality, addressing client requirements, and stimulating constant advancement in BPO activities.
Outsourcing Trends
Many service providers monitor events, developments, and trends in the outsourcing industry and their clients’ specific sectors to deliver superior services, regardless of the business or economic situation. They perform market analysis, industry research, and similar activities to stay up-to-date and relevant in a competitive business landscape.
Discover the BPO trends and developments that affect how service providers operate and offer client service:
- Robotic process automation (RPA)
- Artificial intelligence (AI)
- Machine learning (ML)
- Natural language processing (NPL)
- Virtual reality (VR)
- Augmented reality (AR)
- Remote working and the gig economy
- Omnichannel support
- Green initiatives
- Big data and data analytics
- Blockchain technology
- Internet of Things (IoT)
- Outcome-based pricing models
- Experience communication as a service (XCaaS)
- Advanced cybersecurity and data protection
- Digital transformation initiatives
The Bottom Line
BPO involves a comprehensive approach to delegating secondary or non-core operations. It covers various elements besides the BPO agents who do the tasks. Each factor impacts the effectiveness of BPO services and the value they offer to customers and client companies.
These areas will also help you with your outsourcing decision. They will give you more knowledge on what kind of BPO company to choose, the pitfalls to avoid, and the right questions to ask potential outsourcing partners.
Let’s connect if you want to learn more about the dynamics of outsourcing and what goes beyond BPO agents!
