WHAT IS BPO

Business process outsourcing (BPO) is an

act of outsourcing that involves the
contracting of the operations and
responsibilities of a specific business
functions (or processes) to a third-party
service provider.
BPO as expanded sounds as Business
Process Outsourcing and can be aptly
defined as the act of utilizing the services of
a third party by a company in order to
perform its back office operations that
might be payroll administration, customer
help desks/ call centers, telemarketing,
accounting, billing; the list is endless.
WHAT IS OUTSOURCING?
 Delegating a Company’s Business
processes to third party.
 Outsourcing, the application of
taking internal company tasks and
paying an outside firm to handle
them at a lesser cost, is usually
allocated overseas to foreign
nations.
Business Process Outsourcing includes
the following areas and a lot more:

Back office operations

Customer Relationship Management
Call Centers and telemarketing
Tele-servicing and product support
Finance / Accounting/billing
Human Resources
Medical transcription
Back Office Operations
Insurance Claims Processing
Technology Service Outsourcing

Tech
Tech Support
Support

Web
Web Hosting
Hosting

Web
Web Hosting
Hosting

Web
Web
Designing/Development/Maintenance.
Designing/Development/Maintenance.

Reasons for
Outsourcing
1. Savings in Labor Cost - This is perhaps the most important
reason why companies should opt for outsourcing some of their
activities. The cost of labor in some of the developed countries is
extremely high and creates a huge expense for the employers. If
the same jobs were to be done at a far lower price by equally
skilled personnel then it is definitely advantageous.

2. Growing Global and Local Market Shares - More importantly,

even if they do not outsource, their rivals will. This will affect them
adversely as their rivals will gain in terms of profitability and lower
costs. Able to pass on high quality at lower prices, rivals will walk
away with market shares, which a firm cannot afford to lose.
Stagnating corporate profits will limit the creation of new capital
and its reinvestment within the domestic economy.

3. Communications - With the improvement in

telecommunication networks and lowering of telecom costs
across the world, outsourcing as an option provides round the
clock services to companies and their clients without putting too
much of a strain on the existing manpower.

4. Speed - As a result of better communications, outsourcing has

helped a number of companies reduce their turn around times by
taking advantage of the time difference between countries. In the
big picture, firms reduce time to market on new products and
improvements beating rivals that do not outsource.

5. Tax Breaks - A number of companies in the US have benefited

through tax breaks from outsourcing. According to Federal Law,
companies can defer payment of tax on profits earned abroad for
an indefinite period. These taxes are to be paid only when they
return these profits to the US.
6. Move to Higher Segments of the Value Added Chain - The
move to outsource helps the higher income earning countries to
move to higher segments of the value added chain as they are
now free of some tasks that have been outsourced.

7. Profitable Use of In-house Resources - Firms around the

world are attempting to make the most of their in-house talent
pool. Expertise and experience are definitely in short supply,much
in demand and more importantly, expensive. Outsourcing helps
resolve this dilemma and frees a large pool of in house resources
for other work.

8. Focus to Accelerate Business Transformation - This is done

by passing on various specialized jobs to the outsourced vendor
and focusing on the core business. This results in more time
spent working on strategic issues for business transformation and
implementation of the same.

9. Access to Skill Sets and World-wide Capabilities - The

growing shortage of skilled workers in the US has prompted
companies to look elsewhere for these skill sets. Outsourcing
enables firms to access a worldwide pool of workers equipped
with a range of skills.

10. Reductions of Risks - Organizations make large investments

in their operations and have to deal with a number of economic
and political changes, which may prove risky for their businesses.
By outsourcing, companies are able to reduce some of the
associated risks because service providers also share in some of
the costs. This reduces the cost burden on the outsourcing
company.
TYPES OF ACTIVITIES SUITED TO OUTSOURCING
1. Front Office
 Inbound Sales
 Outbound Sales
2 Back Office
 Accounting
 Data Entry
 Database Management
 Human Resources

BENEFITS OF BPO
 Free Your Resources and Work On Your Strategy
An important aspect of business process outsourcing is its ability to free
corporate executives from some of their day-to-day process management 2
 
 responsibilities. Traditionally, executives spend 80 percent of their time
managing details, and only 20 percent on strategy. Once a process is
successfully outsourced, the ratio can be reversed. Executives get more
control over their most valuable resource: time. Time to explore new revenue
streams, time to accelerate other projects, and time to focus on their
customers.
 
 Improve Processes - Save Money
Companies that outsource business processes are often able to reengineer
those processes and capture new efficiencies. Then they can reallocate
resources to other important projects and leverage their investment in
technology. For example, processes that are handled in a shared production
environment for multiple companies save everyone money. In most cases,
high-caliber subject-matter experts are brought in to design and manage these
processes, bringing with them best practices, innovation, and years of
experience that most companies don't have access to or can't afford on their
own.
 
 Increase Your Capabilities
With this expertise often comes increased capability. In addition to doing
things more efficiently, you can expand your ability to deliver new products and
services to your customers. Then there are the factors of scalability and scope.
Companies that want to grow internationally must continuously invest in
infrastructure and find talent around the world. Many outsourcing providers are
already established globally and can help make the growth process run
smoothly.
The driving force behind the outsourcing of business processes is cost
effectiveness. The availability of abundant, technically skilled English speaking labor
in India is what attracts most companies to outsource their business processes. In
the past decade or so telecom and other infrastructure has also improved up to
global standards. The quality of services provided is also meeting international
standards. Another major incentive for outsourcing is the income tax policy followed
by the government. Another important advantage is the ability of BPO’s to provide
24/7 services

By engaging 24x7bpo Business Process Outsourcing services, the clients can be

assured of the following benefits.

Reduce costs—Our efficient BPO services reduce your payroll and other overhead
expense thereby increasing your profits. Our business processing outsourcing
services even enable you to make fewer capital investments.
 
Allow organizations to focus on their core business—BPO allows organizations to
outsource their non-core processes. This enables them to focus on the more
strategic, programs that generate revenue and ensure the success of the other
business processes.
 
Make the clients more competitive—If an organization is able to formulate a
successful business outsourcing strategy, it will be able to outdo its competitors.
This is because BPOs provide efficient services, access to resources that may be
beyond the organization’s ability and increased cash flow.

CALL CENTRE
 A call centre is a place
of network of places, where a customer’s
queries can be dealt with satisfaction to the
customer. A call centre is a place, which
interacts with the customers, either by making
or receiving calls, for business purpose. It is the
core work of the call centre.

CALL CENTRE SERVICES

Call centers provide various services and
they are totally customizable to the
needs of each industry and organization.
If you are a web solution provider and
want to outsource your customer care
service, customer care call centers offer
the following services:

• Customer care
• Complaint center
• Customer satisfaction
• Troubleshooting
• Order processing
If you are a multinational company
selling electronic equipments online,
your hired call center may provide you
with following services:

• Online Order processing

• Live chat
• Customer care via web or phone
• Complaint center
• Troubleshooting

KINDS OF CALL CENTRE

  According to Geographical
location:-

DOMESTIC-Receiving & Making calls in

same country.
INTERNATIONAL-Call made in one
country & received in other country.

TYPES OF CALL CENTRE

 Inbound Call Centre
 Outbound Call Centre
 Web Enabled Call Centre
 CRM Call Centre
 Telemarketing Call Centre
 Phone Call Centre

INBOUND CALL CENTRE

 The inbound call centers are those
that only receive the calls usually on
toll free numbers from the
customers. These call centers provide
24 hours service to all customers.
The primary goal of these call centers
are to receive product orders, help
customers, to find dealer location.

OUTBOUND CALL CENTRE

  Outbound call centers deals with
telemarketing and product
promotion. It requires technical
experience and expertise to ensure
the clients that you are the company
that is best.

WEB ENABLED CALL CENTRE

 Web enabled call centers are
prevailing throughout the world
rapidly. Web enabled call centers
deal with online transaction and live
chat.

TELEMARKETING CALL CENTRE

 These call centers deal with
telemarketing and promotion of
services. Their primary goal is to
promote sales and customer
satisfaction.

PHONE CALL CENTRE

 They are usually automated call
centers that rout the calls and uses
IVR technology. These call centers
can be used for asking bank account
balance, pin numbers, telephone
numbers and other information.
Computer replies pre-recorded answ
 According to process:-
 Inbound:-Where the calls are
received.
Outbound:-Where the calls are
made.
 According to Technology:-
Voice Based:-Which interacts
with the customers by using voice only.
Web Based:-Which interacts
the customers through web.

INBOUND CALL CENTRE

  An Inbound Centre is one that
handles calls coming in from outside,
most often through toll free
numbers. These calls are primarily
service and support calls, and
inbound sales

SERVICES OF INBOUND CALL CENTRE

 Inbound call centers are designed

to take catalog orders, help desk
queries, dealer locations and more.
They offer customized services
according to the business they are
dealing and hence give constant
 orientation and training to there
employees working for that particular
project. The inbound call centre
professionals process calls and
integrate Interactive Voice Response.
They also use Internet services to sell
additional products and offer services
in a dedicated environment.
 Apart from this they also integrate
customer care services, predict
customer behavior and take action
accordingly, while the customers are
still on the line. So it can easily be
said that in this business you have to
be on your toes all the time. The
inbound call center employ a
 dedicated team of live operators,
account representatives and program
managers. Offering 24/7 operator
availability for the customers, these
call centers provide round-the-clock
account management. Attention on
detail is a must trait for surviving in
this business.
 Inbound call centres offer
communication services specifically
designed to maximize the efficiency
of direct marketing efforts or to be a
part of the technical support team of
the clients. They help the business in
building a successful long-lasting
relationship with customers and
 hence ensure the growth of the
business.

For Example
 Customer Service
 Toll Free Response
 Help Desk
 Seminar Registration
 Inquiry Handling
 Technical Support
Representatives in inbound call
centres are called CSRs (Customer
Service Representatives)
INBOUND CALL CENTRES OFFER
• Skilled, professional, customer support
and technical service representatives
• Experience with programs similar to
yours
• Rapid response to market conditions
• Market research
• Account management expertise
• Enhanced reporting capabilities
• Market testing capabilities
• Improved market coverage
• Faster ramp-up, launch, and roll-out of
new campaigns
Banking & Finance
I.T & Telecommunications
Insurance & Mortgage
Public Transportation
In Outbound Call Centres
the calls are initiated by
the representatives,
mostly with the aim to
sell a product or service
to a customer.
 Outbound Call Centers depends
on the technological solutions,
extensive experience, quality
assurance programs and commitment
to customer service excellence that
further ensures maximum results
from the direct marketing efforts for
 its success. The business depends on
three basic things training, research
and persuasion.
 The success of this business is the
training of the agents to become
competent and persuade the
customer. This takes a lot of skill and
practice. For a call canter business to
do well it is important that constant
training be provided to the agents
and they should know all the latest
techniques employed.
 The outbound clients benefit from
the rigorous adherence to highly
cost-effective, results-based
production and management
processes. The key to success is the
thorough understanding of the
business. Having understood the
differences between business-to-
consumer and business-to-business
telemarketing, the outbound call
centers use experienced
management to focus on the unique
requirements of each client and their
targeted market. Incentive are
offered to motivate the agents.
OUTBOUND CALL CENTRE SERVICE ARE:
 Direct Mail Follow-up
 Production Promotion
 Debt Collection
 Appointment Scheduling
 Up Sell/ Cross Sell Campaigns
 Market Intelligence Surveys
 Information and Literature
Fulfillment
 Customer Satisfaction
Banking & Finance
I.T & Telecommunications
Insurance and & Mortgage
Tourism, Travel Industry &
Hotels
Manual Dialer
Progressive Dialer
Preview Dialer
Predictive Dialer
Predicative Hang-up
Dialer
 MANUAL DIALER
 Using a manual dialer means
where an agent has to dial manually
A device that presents the account
information and phone number on
the screen after the number is
dialed
This dialer is more automated
than a preview dialer but less
automated than a predictive
dialer.
A device that presents the
account information and
phone number on the
screen to allow the agent
to “preview” the
information before
instructing the dialer to dial
(or not dial) the call
A device used to automate the
method of making outbound
calls and directing them to an
agent when a live person
answers
Predictive dialing screens out
other responses such as
answering machines, busy
signals or operator intercepts
and records the result
 A software feature that routes a
call groups of agents (also called a
“queue”) based on first-in, first-
answered criteria. The guiding
principle is that the caller who has
been waiting the longest will be
first the caller routed to the next
available agent. The agent that
receives the call will be either the
first available agent or the agent
that has been available for the
longest period of time
A method of connecting your
telephone system to your
database to permit faster and
more efficient handling of calls.
Most commonly this will allow you
to pop your callers’ details up on
to the agents’ screen when the
calls connects.
Screen pop is a function of CTI, CTI
will direct the data screen of the
calling person’s account to the
terminal of the agent as the call is
being routed
Automatic Number Identifier (ANI)
A telephone service that provides
the telephone number of an
incoming call
A signal that software programs
“pick up” the moment some calls
in and then route that call to the
appropriate rep and display the
caller’s record of info in front of
them
The process of combing the flow
of inbound/ outbound calls and
other contacts such as email or
web transactions to a set of
agents.
Contact blending can be
accomplished manually or by
means of automated systems that
route the contacts to the agents.
A call or other type of contact that
has been offered into a
communications network or
telephone system, but is
terminated by the person
originating the contact before any
conversation happens. In an
outbound calling scenario,
abandoned calls refer to connects
that are disconnected by the
automated dialer once live contact
is detected and no agent available
to match up with the call.
A device which automates
retrieval and processing of
information by phone using touch
tone signaling or voice recognition
to access information residing on a
server to give a response. The
response may be given by a
recorded human voice or a
synthesized ( computerized voice.
IVR is used in applications such as
“Banks by phone” or “check on my
order” which not only distributes
information but collects
information as well
The elapsed time from
when a person answers a
call until the call is
disconnected by a person
The time required by an
ACD agent after a
conversation is ended, to
complete work that is
directly associated with the
calls just completed. Does
not include time for any
other activities such as
meetings, breaks,
correspondence
Work immediately following
an inbound call or transaction.
If work must be completed
before agent can handle next
contact, then ACW is factored
into average handle time.
Work may involve keying
activity codes, updating
database, filing out forms,
placing an outbound contact
A set of international
standards for telephone
transmission. ISDN
provides an end-to-end
digital network, out-of-
band signaling, and
greater bandwidth than
Reflects organizational
older telephones
goals
Change
servicesin sales volume
from month to month
A sale per day refers to a
total number of sales
divided by total number of
days
Paying Method
- Transaction
Card Present Transaction (CPT)
- Card holder
Physically present
Card Not Present Transaction
(CNPT)
- By Phone, Web, Fax
Only large companies are
preferred or allowed to make
By Credit Card
CNPT
CNPT carries higher risk of fraud
By Cheque
Modes of Payment
ACH is an electronic network.
It transfers and clears funds
between banking institutions.
It takes 48 hours to clear
ACH is the term used in US

In UK it is known as BACS (Banks

Automated Clearing Services). In
Australia it is known as APCA
(Australian Payment Clearing
Association). In Canada it is
known as ACSS (Automated
Clearing Settlement System).
These numbers are issued to
citizens, residents and
temporary working residents.
It is used for taxation purpose
These number has become de
facto national numbers
These numbers are the source
to access Credit Report
These numbers are issued to
citizens, residents and
temporary working residents.
It is used for taxation purpose
These number has become de
facto national numbers
These numbers are the source
to access Credit Report
After the sale is made the call is
transferred to a verifier who states
the terms and conditions to the
customer who in turn accepts the
terms and states a “yes”. This
conversation is recorded and
saved as file.
The recording/ file are called
Digital Contract or Signature
It is a legal contract
For verification process:
The customer has to be 18 yrs
of age or above
Recording Permission
Verbatim (material, price,
cancellation)
Payment mode
Customer Service Number
Identity theft is a crime.
Identity theft is the wrongful use
of another’s personal data for
economic gain

E.g. your bank account number,

social security number, credit
card number can be used for
this deception