BPO is a very common term we hear around due to its huge demand. BPO full form is Business Process Outsourcing. It is like a contract wherein a company’s non-primary activities or functions are outsourced to the 3rd party provider on a contractual basis. In the BPO sector, there are a lot of services provided like Payroll, Accounting, Customer/Call Center Relations, Human Resources (HR), etc.
BPO is also known as Information Technology Enabled Services (ITES). BPO, in layman’s terms, can be defined as a process wherein a company or organization shares its business functions or responsibilities with the third-party organization. This is done as the 3rd party organization has professionally capable experts for handling the tasks which the company can either not do on their own, or they do not wish to handle it.
In respect to the above information, this article has been prepared to provide complete information about BPO, including BPO ka full form and the services offered through it, etc. Give a read to know more.
Business Process Outsourcing- What is BPO?
BPO ka full form hai Business Process Outsourcing. It means when a company is unable to handle all its tasks on its own; they take help from the other companies that are professionally capable of handling those tasks through their experts. This benefits the company to a greater extent as the work is done timely, and it costs just the same. The list of such services offered by BPO’s are customer services, billing administration, technical support, etc.
Mostly BPO executives are provided with the job to monitor the tasks, especially the back office jobs wherein they are responsible for helping the customers or helping clients with the billing or purchasing, etc. In the BPO operation, a company contracts with the 3rd- party vendor for handling the back-office tasks. According to the organizations who seek help, this is a money-saving tactic as it allows them to concentrate on the core tasks by outsourcing back-office tasks and handling front office tasks on their own.
There are a lot of tasks in front of a BPO executive, but the most important one is to take care of the needs and requirements of the clients or customers and to keep them satisfied.
Story behind BPO
The concept of BPO was at first brought forward by Ross Perot in 1962 when he established Electronic Data System (EDS). EDS, for its prospective clients, said, “You might be aware of the product designing, manufacturing, and selling, but we are well aware of the information technology management. We can sell you the Information Technology which you need, but in return, we will charge a certain monthly fee but what’s important to note here is, the service taken should be at least for 2-10 years.”
Types of BPO Jobs
BPO has two major categories,
- Front-office customer services like tech support and
- Back-office business functions like billing
Responsibilities of BPO candidates
- Their primary task is to handle the calls of customers or clients and to help them by providing simple answers to their questions and effective solutions.
- The BPO executives should have the curiosity to learn new things as per the requirement.
- In case of any concern, connecting with the supervisor or the team leader in order to find an effective solution to the problem.
- To provide proper resolution to the customers or clients so that they can remain satisfied.
- The BPO executives should not just have the knowledge about the basic services, but they should also knowledge about other professional services, including business research, financial analysis, legal services, etc.
- To have the capability to efficiently complete the target so that better services can be offered by them.
BPO Candidates Skills
In BPO, there is a requirement for better communication as this is required to handle different processes. So, if a candidate is applying for a BPO job, they should pay attention to oral and written communication. Apart from this, some of the other required skills are,
- They must be an effective communicator while contacting or connecting with the customer or client.
- Must have the knowledge of computer basics.
- They must be capable of adapting to any environment and time.
- They must take steps and must have the curiosity to learn new things.
- Must keep themselves motivated all the time.
- Must be patient, and in any of the situations, they must be prepared to keep themselves strong.
- Should keep themselves updated with the market and follow the trends.
Education Qualification Requirement for BPO candidates
As per the BPO industry, the candidate must have,
- At least one degree in any of the fields but from an accredited institution.
- Some BPO specifically ask for the Bachelor’s degree in Maths, Science, or Statistics as they have to work as per the requirement of their clients.
- This sector is best for the candidates who are freshers, and they are unaware of the work and related details. It helps them to gain exposure and experience.
Salary of BPO candidates
The average salary of the BPO executive in India is INR 203 379 annually. In order to get a salary hike and promotions, experience is important. Now, this is completely dependent on the capability of the candidates as to how fast they can get good promotions with their capabilities.
What is KPO?
The full form of KPO is Knowledge Process Outsourcing. In comparison to BPO, this is not that popular. It means outsourcing such processes, which requires high-level technical and analytical expertise. It is the lack of skilled labor that there comes in the requirement of KPO for the core processes, specialized knowledge, and expertise. This also helps in additional value creation and cost reductions, which is an essential requirement in a company. BPO/KPO presently is one of the flourishing businesses.
What is the meaning of Outsourcing?
When one wants to start a new business or expand the existing one, the biggest problem that comes in front is the lack of more staff, sufficient infrastructure, proper expertise, etc. In such cases, it is not easy to develop such resources so easily, and neither it is economical. So, in such situations, thinking logically will be a better option, and outsourcing such requirements, this is the best solution. It helps to get timely & quality work.
Advantages of BPO
Some of the main advantages of BPO are,
- It helps to increase the speed and efficiency of the business process.
- It helps in saving employees time so that they can give more time to increase the core business strategies, which at a later date, will help them to gain competitive advantages and to increase the value chain engagement.
- Low operating costs and Improved automation.
- Increased flexibility in scaling so that experts and technology can both be accessed easily.
- It helps in making smarter analytics about the consumer and products.
- It helps with organizational growth as when there is no requirement for capital resources and asset expenditures; there is no increased problematic investment returns.
- Organizations do not need to give time to the unrelated primary business strategy assets, and this helps them focus on the core strategies development.
Disadvantages of BPO
- There is a high probability of data privacy breaches.
- Herein, the running cost is underestimated.
- Organizations increase overdependence on the service providers.
What are the benefits of Outsourcing?
Some major benefits of outsourcing are,
- Companies get more time to focus on core activities by outsourcing data entry and other cumbersome jobs.
- When the secondary responsibilities are outsourced to the BPO, the time taken by them to correct work is very less, and this, in turn, improves the cost-efficiency.
- It helps in reducing the overhead cost. To do some processes, there is a requirement for big infrastructure, maintenance, investment, and other overheads. So, it is better to outsource such processes.
- If any employee leaves the work at short notice or without any notice, there occurs no disruption in the work of the company, and it continues at the same pace.
- To handle a big project, if the employees do not have the required skills, in such cases, on-site outsourcing of the project helps the employees to learn new skills as they work side-by-side with the outsourcing BPO.
What is the difference between BPO and Call center?
A BPO is an organization which for a business organization responsible for handling a process or part of its performance. This is done to decrease the outsourcing cost and increase profit.
A call center, on the other hand, is the one important part of a client’s business as it handles the telephone calls. For example, a call center handles customer complaints and tries to solve them through the telephone.
So, a call center can be considered as a type of BPO organization but not vice versa, i.e., a BPO can never become a call center.
Hope this article was able to provide complete details about BPO, including the BPO full form. It’s a request from our readers that the information obtained through this article be spread around as this would increase the curiosity and it will help a lot of people around.
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