KERALA'S NO 1 BPO TRAINING INSTITUTION IN ERNAKULAM
KERALA'S NO 1 BPO TRAINING INSTITUTION
TRANSORZE SOLUTIONS
BPO is the contracting of the operations and responsibilities of specific business functions (or processes) such as payroll, customer service, voice and non-voice processing, accounting, data recording and more to a third-party service provider
BPO is much more than just telecalling. BPO companies perform back office tasks of any business like customer support or accounting functions along with telecalling.
Purpose of BPO
- Productivity improvement
- Optimum utilization of the resources
- Reduction in cost
- Improved Human Resource
- Focus on core business areas
- Cater to changing customer demands
- Sophisticated technology at lower cost
How does BPO work?
Enterprise executives opt to outsource a business process for a variety of reasons. Those reasons vary based on the type, age and size of the organization as well as market forces and economic conditions.
Startup companies, for example, often need to outsource back-office and front-office functions because they do not have the in-house resources to perform them.
An established company may opt to outsource a task that it had been performing after determining that a third-party service provider could do the job better or cheaper. Management experts advise enterprise executives to identify functions that can be outsourced and then determine if shifting that task to an outsourcing provider makes sense.
If so, the organization must go through the process of not only identifying the best vendor for the work, but also shifting the work from in-house to the external provider. This requires a significant amount of change management, as the move to an outsourced provider generally affects staff, established processes and existing workflows.
The shift to an outsourced provider also affects the organization's finances -- not only in terms of shifting costs from the internal function to the outsourced providers, but often in terms of corporate taxes and reporting requirements.
The organization may also need to invest in new technology to enable the smooth flow of work to the outsourced provider. The extent and cost of that technology depend on the scope of the function being outsourced and the maturity of the technology infrastructure in place at both enterprises.
This process typically starts with enterprise leaders identifying specific functions or business processes to outsource as a way to save money, gain flexibility, improve performance and redirect resources to its core business capabilities.
Business leaders then consider whether one vendor should handle all the work being outsourced or whether contracting multiple providers for the various tasks would deliver the best value. For example, a company could decide to outsource most of its HR functions and then either contract for a single provider to perform all the outsourced processes or it could hire one for payroll and another for benefits administration.
Those considerations should lead to a list of requirements as well as a detailed scope of work for outsourcing. Organizations use those to shape a request for proposal to share with vendors that determine whether they can meet the requirements, at what price and with what value-adds.
Once an organization has selected the provider or providers it wants to hire, it must determine the type of contract. Such contracts generally fall into one of the following categories:
- time and materials contracts, in which the business pays the provider for the time worked and the materials used; or
- fixed-price contracts, which set an upfront price for the specified work.
Additionally, organizations must draft with their vendors the service-level agreement detailing the quality of the provided services and the metrics for determining success.
Depending on the needs and nature of the outsourced work, some organizations also negotiate with providers on whether to have the following:
- specific workers on teams dedicated to their outsourced work;
- workers located only onshore or, conversely, globally distributed; or
- workers available 24/7 or only during set hours.
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