What is Business Process Outsourcing? | BPO Services

BPO services refer to the practice of contracting out specific business functions to external service providers. Check every small detail about Business Process Outsourcing through this guide.

July 17, 2023


15 Minutes

Saumya Singh

Saumya Singh

What is Business Process Outsourcing? | BPO Services


Business Process Outsourcing (BPO) services include a wide range of tasks and functions that organizations outsource to reduce costs, improve efficiency, and focus on their core business activities. This industry now has a global presence, and companies of various sizes across different sectors utilize outsourcing to gain a competitive advantage. In 2023, the market size of business process outsourcing (BPO) reached USD 261.9 billion, with a projected compound annual growth rate (CAGR) of more than 9% for the forecast period of 2021 to 2030.

BPO handles customer service queries through channels like chat, email, phone, social media, replies through app support, etc. A specialized business processes services provider that involves third-party vendors or subcontractors with a skilled team of professionals outsourced to perform non-core tasks. These services are widely utilized across various industries to streamline operations and enhance overall organizational performance.

Also Check: Call Center Outsourcing Company in India

Get over traditional BPOs through a Partner
Get over traditional BPOs through a Partner
How is SquadStack diffrent from BPO
Image: How is SquadStack diffrent from BPO

What is BPO (Business Process Outsourcing)?

The BPO stands for 'Business Process Outsourcing', which means outsourcing various functions like customer support, customer satisfaction, data entry, accounting, and human resources to an external service provider outside the company. Hiring an external agency is also done to reduce costs, set these services in-house, and improve focus on core activities. Many large organizations outsource telecalling and customer support services by setting up an in-house team to lower operational costs. 

Major Advantages and Disadvantages of BPO

BPO has many advantages, including the fact that it focuses on core competencies such as customer service, marketing and finance. It also has many other benefits, such as increasing speed, accuracy and productivity. It can help companies expand globally. However, it has some disadvantages, such as a lack of authority and control, communication gaps or delays, security risks and less transparency.

Advantages & Disadvantages of BPO
Image - Advantages & Disadvantages of BPO

Let us explain the meaning of BPO with the example of Upstox, SquadStack's fully managed telecalling outsourcing services, on-demand sales experts, and A.I.-driven outreach enabled Upstox to increase their activations, accelerate sales, and connect with more customers. This business process partnership freed Upstox's team to focus on high-leverage tasks without the concerns of hiring, training, and quality control for a large sales team.

"Outsourcing gives us a lot of flexibility. We found a great partner in SquadStack, who helped us achieve our goals, growth, and targets.
"Satyartha Srivastava, Customer Success Lead, Upstox
Outsourced BPO Telecallers Sales Experts

How is Squadstack different from the in-house team

What is Customer Service in BPO?

Business Process Outsourcing needs to support the customers for whom the company provides services. Customer service is support offered by customer care executives to customers before and after they buy products or services. BPOs must provide good customer service to retain old customers and maintain brand value. Providing good customer service to clients can lead to a positive experience for the client. These services can be provided through various omnichannel methods like chat support, social media, emails, SMS, IVR, etc.

How to deliver Excellent Customer Service?
Image: How to deliver Excellent Customer Service?

Importance of BPO Customer Service

Customer service is important in handling the issues faced by customers. Every business needs new customers but also needs to retain old ones. This can only be possible with excellent customer service.  The importance of customer service in BPO is as follows:

Boost customer satisfaction ratio: Customers engaging in telecalling, sales calling, inbound calling, outbound calling, and other necessary services should be satisfied.

Deliver high-quality service in real-time: Ensuring the delivery of high-quality services through various outreach channels is crucial. There is a need to hire competent customer care representatives and quality agents for this.

Improve customer loyalty: A BPO that offers excellent customer service promotes customer loyalty.

Positive word of mouth: This can be the most effective advertising method when customers share information about your services with others through word of mouth.

What is Collection Process in BPO?

Role of Business Process Outsourcing Services

BPO services play a crucial role in handling non-core functions. Outsourcing specific tasks such as lead generation, sales, and data entry to BPO service providers with lower labour costs enables businesses to achieve significant savings in operational expenses.  These services also help bring in expert, skilled people to deliver high-class services.

BPO service provider
SquadStack, which is a telecalling BPO service provider in India that offers a fully managed sales team with high-quality technology analytics, artificial intelligence, and trained telecallers.

Types of BPO Services and Their Benefits

There are many types of Business process outsourcing services, and each caters to unique needs and requirements. By going through these types of BPO services shared below, businesses can easily make a decision about which services to outsource.

Five Different Types of BPO Services
Image - Five Different Types of BPO Services

Back Office Outsourcing Services

Back office is a type of BPO service that does not interact with the customer. Back office types of business process outsourcing include IT services, human resources, quality assurance, accounting, etc. Back office services include tasks like:

  1. If a company outsources the HR administrative tasks such as employee onboarding and benefits administration.
  2. Many companies outsource payroll processing, leave management, records management, and new employee joining
  3. Financial and accounting functions.
  4. Managing documentation, filing, and record keeping.
  5. Maintaining and organizing physical or electronic records.

What is the Average Handle Time in a BPO?

Front office Outsourcing Services

This includes roles such as customer-facing tech support, telecalling, sales service, and internal marketing functions like social media marketing. Outsourcing is necessary for certain tasks that require technical expertise. The roles involve interaction with people and are a part of the Front Office.

Offshore Process Outsourcing Services

When services are outsourced outside the native country of the company due to low labor costs and tax savings, they are known as Offshore BPO services. There are many types of call centers located in countries like India, Bangladesh etc. These results in cheaper rates due to low labor costs.

Near Shore Outsourcing Services

Some countries have low-cost outsourcing facilities located in the native land of the company, which has higher outsourcing facilities. This type of outsourcing is known as Near Shore type business processes outsourcing services. Some of the benefits of Nearshore types BPOs are provided below:

  • Companies can outsource to countries with lower wage rates; thus, this can help companies reduce their operational costs for work like telecalling operations.
  • These companies can get access to a wide talent pool of specialized professionals through these offshore locations.
  • By outsourcing certain tasks, companies can focus on their core competencies and increase efficiency and productivity.

Onshore/ Domestic Outsourcing

When a company in India utilizes the services of a locally outsourced firm situated within its nation, this type is referred to as domestic outsourcing.

Let us explain this with an example: Squadstack can manage 170k+ leads and handle 100k+ customer calls daily. Squadstack offers its customers upsell, assisted onboarding, pre-sales, sales and renewals, and lead qualification services to companies; thus, it becomes domestic outsourcing because Squadstack's headquarters are in Noida, India.

How does a BPO (Business Process Outsourcing) Work ?

In this fast-paced business world, companies constantly check for ways to improve and optimize operations and enhance efficiency. For example, there can be chances that the in-house telecalling team is insufficient, so there is a need for an external telecalling agency. This external telecalling agency can prove a cost-effective source to connect with your customers. It can seen that outsourcing can help in many ways, so let us check how does a BPO work? The work process involves the following fuctions

BPO Sales & Operations Outsourcing: Outsourced business process firms act as external support to increase prospects and nurture untouched leads in your sales funnel stages. This team can provide valuable insight into customer service and focus on flaws that act as a sales stoppage.

Lead Qualification Works: Business Process Outsourcing (BPO) plays an important role in the lead qualification. These lead qualification calls help companies understand the needs of potential bulk leads, resulting in a successful conversion. The varios functions of lead qualification calls are shared below: 

  1. Assessing Client Needs
  2. Establishing Compatibility
  3. Setting Expectations with client
  4. Ask Open-Ended Questions
  5. Listen Actively to understand the needs of Customer
  6. Showcase Expertise in various sales qualification processes 
  7. Schedule one on meeting with client 

Lead Qualification Made Easy With SquadStack

Why Choose SquadStack for LQ - Business Process Outsourcing
Image - Why Choose SquadStack for Lead Qualification

Quality Assurance and Improvement: These Business process services provider is responsible for delivering high-quality services. The BPOs must provide a set of guidelines to their agents so that they provide good quality services to their customers. So BPOs work on improving the quality of calls. 

Continuous Monitoring and Communication: The client and BPO must set up regular meetings. Both should works on each process and reviews performance in these meetings, which helps them to help track progress and address concerns.

For Example, SquadStack's fully managed telecalling stack relies on a human and AI-powered continuous quality monitoring process, which makes it a crucial infrastructure component to track the progress of its customers.

Contract negotiation: Finally, after the client has selected a BPO provider, many contract terms come into the picture, leading to the negotiation of contract terms.

BPO Telecaller and its Duties

BPO Telecallers are essential as they act as a direct link between the company and its customers or potential clients. BPO Telecallers have the ability to handle calls professionally, communicate effectively, and meet specific performance targets. BPO Telecallers should display excellent communication skills to initiate telephonic conversation with existing and prospective clients.

Telecaller Roles and Responsibilities

Squadstack has India's best telecallers that can boost the calling campaigns of any company. The roles and responsibilities of a BPO telecaller are shared below: 

Outbound Calls: Making outbound calls to customers or leads for various purposes, such as sales, customer surveys, lead generation etc.

Inbound Calls: Handling incoming calls from customers and providing them with assistance and resolving complaints. Thus BPO telecallers guide customers through the appropriate channels for further support.

Customer Support: Providing customer support and resolving issues or concerns through phone communication.
Sales and Telemarketing: Pitching products or services to potential clients and convincing them to make a purchase.

The Power of Sales Outsourcing: Meaning and Benefits

Understanding the Need of a Fully Managed BPO Call Center

A fully managed BPO call center helps businesses optimize operations, enhance customer service, and strategically leverage external expertise to achieve business objectives. Outsourcing to a fully managed BPO call center, which has trained telecalling agents, can foster a positive customer experience by providing services such as handling customer queries, offering technical assistance, and providing product guidance. Additionally, they handles dispatch services, order processing, market research, telemarketing, and telesales.

What are Important BPO Software and Tools?

Several essential BPO software and tools play a crucial role in optimizing efficiency, ensuring quality, and improving overall performance. Here are some important ones:

Process Management Software

Process managent software help BPO industry to create visual representations, plan, execute, monitor, and optimize their business processes. These are valuable for understanding, analyzing, and optimizing workflows within a company. It plays a crucial role in enhancing efficiency, transparency, and collaboration within an organization.

Let us take the Example of Agent Management Platform by SquadStack

The Squadstack Agent Management Software is an example of process management software that simplifies the screening, training, and outreach of calling agents. This platform facilitates the selection of the best callers for your campaign through on-the-job training. Additionally, it provides task navigation, built-in dialers within the application, and a structured data entry facility.

bpo Process Management Software

Cloud BPO Services

Cloud BPO (Business Process Outsourcing) services involve outsourcing diverse business processes to a third-party service provider, and these services are delivered through cloud-based technology. This utilizes cloud computing infrastructure and platforms to streamline and optimize business processes. Cloud BPO services provide flexibility and scalability, allowing businesses to scale their operations up or down as needed. With cloud-based internet technology, businesses can avoid the upfront costs associated with infrastructure and technology investments.

Quality Management Software

Quality Management Software (QMS) is designed to simplify and optimize quality control processes. SquadStack's unique approach to quality analysis sets us apart in several key ways. By utilizing the accuracy of AI-generated quality scores through manual checks, audits, and preventive measures, we enhance visibility into your campaign's quality through the Call Quality Dashboard.

bpo Quality Management Software

Communication and Collaboration Tools

This ensures effective communication through various channels like calls, messages, and live chats. Collaboration tools are integrated to enhance teamwork among agents, allowing them to work together efficiently and share important information
SquadStack's platform includes lead management tools to organize and optimize the handling of potential customers.

bpo lead management & omnichannel outreach
Omnichannel outreach is implemented through various communication channels, ensuring a comprehensive approach to customer engagement.

Analytics and Reporting

Analytics and reporting tools are integrated into SquadStack's services to provide clients with valuable insights. This includes data on call quality scores, audit parameters, total audited calls, and performance-based categorization of callers.

Analytics and Reporting

BPO Readings - Compilation of Key Articles

Check everything about BPO services, every important piece of information about Busniess Process Ooutsourcing, through the articles shared below:

10 Roles and Responsibilities of Customer Care Executive in a BPO

Attrition Rate Formula in BPO & Call centers | How to Calculate

BPO Business Process Outsourcing Services in Noida

Everything about BPO Voice Process and Non-Voice Process

Difference Between BPO and BPM as Outsourcing Partner

The Difference Between BPO and Call Center: Simplified and Explained

BPO Vs KPO | Difference between BPO and KPO

BPO vs SquadStack: How SquadStack Leverages Technology to Deliver a Better Outcome

Shrinkage in BPO Call Centre: Formula, Types, and Calculation

SquadStack VS. Your Traditional BPO

Team Leader in BPO: KRAs, Responsibilities and Job Description

What are Quality Parameters in BPO: A Complete Guide

What is Sales in BPO? 7 Sales Process Steps For Best Results


What is a BPO or Business Process Outsourcing?


Business Process Outsourcing, can be defined as a situation when a company hires another external agency, company, firm or service provider to improve the efficiency of these business process services tasks, reduce costs to set these services in-house and improve focus on core business activities.

What is quality assurance and what are roles and responsibilities of quality analyst in BPO?


Quality in BPO means agents must follow guidelines and instructions to provide excellent customer service. The roles and responsibilities for a Quality Analyst include monitoring and evaluating services, and making sure that quality standards are met. They also ensure that agents are meeting client expectations.

What is Customer satisfaction in Business Process Outsourcing?


Customers' problems must be resolved quickly because customers are key to any industry. In BPO, customer needs to be satisfied with customer service support, after-sales, and their experience during the customer journey.

What Is Collection Process In Business Process Outsourcing?


The process, which includes strategies to clear debts and payments from business clients and companies, is the Collection process in BPO.

What are various functions of Lead qualification calls in Business Process Outsourcing?


The various functions of BPO lead qualification calls are assessing client needs, establishing compatibility, setting expectations with client, ask open-ended questions, listen actively to understand the needs of customer, showcase expertise in various sales qualification processes and schedule one on meeting with client .

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