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Types of

Industries in
BPO

Lesson 4:Delivering Quality Customer Service


Objectives:

1. Identify the different types in BPO.


Activity

 Theclass will be divided into 3 groups.


Each group will have their leader,
secretary and reporter. Group members
should collaborate.
 Task time: 5 minutes
Activity

 Think about calls you have made or


received from a call center representative
or telemarketer. Give examples of
customer service functions you have
encountered or obtained in these
interactions?
Activity

 Fillin this chart on a separate sheet of


paper to summarize the details of your
interaction. An example is already
provided:
Call centers, just like other types of businesses,
offer a variety of products and services. The
development in the business world pushes the
industry to be more flexible, thereby making
the possibilities endless. Call centers are also
classified based on job-tasks and the location in
which the service is offered.
 
Frequently, BPO is referred to as Information
Technology-Enabled Services (ITES). This is
because most business processes include some form
of automation and information technology devices
such as computers that "enable" these services to be
performed. This encompasses careers in software
development, data entry, programming, and web
development services.
 
An offshoot of BPO is Knowledge Process
Outsourcing (KPO) Considered by some to be
a subset of BPO, KPO includes those
activities that require greater skill,
knowledge, education, and expertise to
handle. This may include services in
financial analysis and legal services.
Types of
Industries in
BPO

Lesson 4:Delivering Quality Customer Service


BPO is often divided into two main categories:

1. Back Office Outsourcing


- This includes internal business functions
such as billing, purchasing, payroll of
employees, and other similar tasks
2. Front Office Outsourcing
– This includes customer-related services
such as marketing or technical support.
Based on the location of hiring and contracting, BPO may be categorized
as:

1. Offshore Outsourcing
– is outsourcing contracted outside a
company's home country. This is done when
high-volume, low-complexity tasks are
processed in a country with a significantly
lower cost base than where the service has
become more sophisticated
For example, the UK: traditionally India, but
more recently China, the Philippines,
Malaysia and some South American countries.
2. Nearshore Outsourcing - BPO that is
contracted to a company's neighboring
country. The cost base of these countries is
still lower, but geographical proximity and
cultural similarities can create an easier
working relationship
A good relationship, cultural similarities and
absence of communication gap can result in
a more complex work being transferred
easily. For Western Europe, this is to Eastern
Europe. For the United States this is to
Canada and Mexico.
3. Onshore
- is an entirely different scheme. It is the
practice of obtaining business-critical, high-
level services from someone not employed by
the company, but within the same country.
Onshore services are unique for each
company.
(e.g., When Burger King Corporation, a US-based
chain of restaurants, lost its laboratories in the
havoc created by Hurricane Andrew in1992, the
company was forced to outsource its quality
assurance functions to other companies in the US.
Burger King still outsources its quality assurance
functions onshore even after rebuilding its
laboratories because it allows the company to
make productive use of its internal resources.)
(e.g., When Burger King Corporation, a US-based
chain of restaurants, lost its laboratories in the
havoc created by Hurricane Andrew in1992, the
company was forced to outsource its quality
assurance functions to other companies in the US.
Burger King still outsources its quality assurance
functions onshore even after rebuilding its
laboratories because it allows the company to
make productive use of its internal resources.)
A Typical Contact Center Representative
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