Tweet

Why BPO Services are Considered Profitable?

Guest post by: Ivana Lewis

Article Overview: BPO services are gaining popularity all over the world. Learn about those factors that contributed in the growth of business process outsourcing services.

Why BPO Services are Considered Profitable?

We are all aware of the fact that business process outsourcing refers to allocation of peripheral work. In this process, business activities are transferred to a third party service provider. These days, several countries choose to outsource labor-intensive, non-strategic work to different outsourcing companies across the world. Well, the entire business process outsourcing work can be categorized into 2 major categories to help businesses to get the right solution. These include:

Front office work:

All types of customer-related services like tech support and marketing are carried out in this category. Companies selecting to outsource front office work get to enjoy reduced cost and improved services, making them gain from the given processes.

Back Office work:

This essentially includes the internal business services like purchasing and billing. A variety of back office outsourcing services are put on offer by call center units to help companies save costs and concentrate more on the core competencies.

Why BPO?

Unlike the ASP or application service provider, the use of business process outsourcing also means that the total amount of risk will get transferred to the organization, operating the process basics on behalf of the ‘outsourcer’. It is BPO that includes the terms of admission to most innovative features and functionality offered or served up through the use of advanced software, catered via the web browser.

The BPO set ups are usually categorized into near-shore companies, onshore companies and offshore companies. The offshore companies are situated overseas. Most offshore companies growing popular are situated in China, Pakistan, India and Philippines, etc.

Onshore companies refer to set-ups based in the same country. These companies are called the onshore companies. For instance, an organization based in the United Kingdom outsources technical support to an UK based call center. On the other hand, near shore business process outsourcing companies would mean companies based close to the nation. Take for example, an organization based in Canada offering service to any United States based company.

A majority of BPO companies are situated overseas, engaged in offering a range of call center services, email answering services and telemarketing. These are called offshore companies, adding efficiency to diverse business activities.

Advantages of outsourcing companies:

24/7 Business Operations: Most business process outsourcing companies operate 24/7 all through the year. This is one of the major benefits of having BPO services.

Reduced Cost: One of the most major factors for every business is cost reduction. The offshore outsourcing organizations function at a low cost. A regular customer care center in the United States charge $15 to $20 per hour for offering customer service or technical support. On the other hand, call center set-ups in India will charge around $8 to $12 in an hour for the same.

Quality service: Most business process outsourcing (BPO) companies focus on offering high-quality services. These service providers maintain quality and data security measures initiating certain parameters like 6 Sigma, BS 7799, ISO and others. These are some set parameters implemented to preserve the high-quality standards.

According to experts, BPO companies have developed as one of the highest growing service centers engaged in opening more avenues for other sectors.

Related Articles
  If You Don’t Know This, Your Business is Losing Money
  Choosing A Profitable Affiliate Program
  4 Tips for Finding Profitable Work at Home Opportunities
  3 Areas To Focus On When Looking To Create A Profitable Home Based Business
  Most Profitable Franchises to Start Today
  3 Advantages while you Outsource General Ledger Reconciliation Services
  Disruption Breeds Opportunity
  Top 10 Home Based Business For 2010 I
  Tips For Starting A Profitable Online Business
  William Wrigley Jr. Quotes
  Solving ‘Too Many Clients – Not Enough Profit'
  Tips For Building A Profitable Affiliate Marketing Business
  Profitable Online Business Ideas To Make Online Income
  Explaining Call Center Services
  Build Your Home Business With The Right Paperwork
  What Do Small Business Owners Really Want
  Finding a Niche Market
  Rule #2 - Making Money In Business
  Top Reasons To Buy A Massage Therapy Franchise
  Building A Successful Internet Based Business

Article Tags: bpo, call center, call centre, Contact center, customer care, Customer services



Related Forum Posts
Help me name my moms business - I think Infinity Cleaning Services sounds better than Elite Cleaning Solutions... Why the Solutions? What is there to be solved? You simply get a rag with some Windex on it and wipe away.... plug the vacuum and Vac Away, get a mop and mop away. Stick to Infinity Cleaning Services... ICS sounds cool...
Re: Search Engine Marketing - Optimization For Local Businesses - Great opportunity! Jump on this while you can, Services like this don't come cheap.
taxes in canada - Well in Canada we only have a few provinces and the Sales tax is slightly different. Here in Ontario the Goods & Services tax has reduced to 5% from 7% in the last year due to the promises made by the government in place.
Re: Most and Least Profitable Businesses to Start - I can say something about the "Least Profitable Businesses to Start" when someone thinks about creating a product before knowing what the market really wants. This happens more often than people realize. People often get trapped into coming up with something it might work but if the market doesn't want that kind of stuff, no matter how innovative the idea may be, it'll turn bad. Like I might be able to come up a way to "... store all of my spam emails into one junk box and keep it stored on the web forever!" -- hey, who wants that kind of stuff.
Never give an excuse - [quote="Sebastien":3d3trrkv]I had an issue once with the Tacone franchise. I called a local location about 5 times and left voicemails every time to have someone call me back because I wanted them to cater a little get together I had. Nobody ever returned my call. I went straight to the website (the franchisor site) and complained that if they were not interested in doing business with me, SubMarina or another sandwich shop would probably be glad to. About an hour later I had a call from the Tacone franchise Area Developer in San Diego, telling me he just took over this territory and he was aware of problems at this particular location. He was really apologetic and knew there was a problem. I thanked him for calling me back so quickly and told him I would probably never buy from them anyways (I am a very snobby customer. When I pay for something, I like to be taken care of). A day later, I get a phone call from the local franchisee (whom I actually knew since we had done business together), explaining how busy he was that he couldn't return my call earlier. I was so chocked! What kind of business is that? I thanked him and told him I will never buy Tacone again. Well, I ended up buying Tacone again because it's so good but I never want back to this one location.[/quote:3d3trrkv] Hi Sebastien, I see where you're coming from and I've stopped going to a particular Kelsey's franchise because of their slow service. We waited more than 50 minutes for our entrees and the manager could only tell us that they were "busy". Well to add to your point, retail expert Doug Fleener says "Profitable Retailers always put the customer first. First before the tasks associated with operating the business. First before profits...First in everything the company does...No one is really interested in how busy you are. In fact, giving an excuse can be insulting. When you say, 'I'm just so busy,' it implies that the other person isn't" ("The Profitable Retailer" 69 & 70). The Tacone franchise you originally called should've arranged for at least someone else to touch base with you if they were too busy themselves to do it or suggested a better time to discuss business.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Ten Ways to Make Blogging Work for Your Business

LEARNING TO HAVE FUN – EVERYDAY!

Do You Have An Entrepreneurial Vision?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.