BPO Meaning | Future Of BPO and Call Centres

BPO meaning (Business Process Outsourcing)


BPO or Business Process Outsourcing, by looking in terms of meaning or definition, It is stated as an outsourcing of any process of the business to some external service provider.


In Business Process Outsourcing, the non-primary business activities and functions are given to some third party organization sitting in a different country where labour is cheaper than the country where the country originally is situated at.


Understand the BPO meaning with a Situation


You ordered a pair of shoes from Nike USA and have a query about when will it arrive? and then called the customer care number, The voice that you hear is an Indian or Asian voice on the other side of the call,


You get confused that if the call got connected to the right place because you have called Nike USA,


Don’t worry


It has happened because of Business Process Outsourcing, BPO in short.


BPO Examples


Indian companies like Genpact and Go4Customer provides customer support to companies situated in the USA.


Under BPO the processes that are given to the third party are front-office functions like customer care and back-office function like maintenance of billing records etc.


Types of BPO


  1. Front Office Process
  2. Back-Office Process.


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Future of BPO industry


The outsourcing of business processes begun in the mid-1990s. It walked very firmly and established itself in developing countries like India. It initially was IT providers like TCS providing BPO services then expanded to pure BPO services like the energizer.


But unlike the predictions that made about it’s rapid growth, this service did not grow as fast as expected. On-the-ground implementation of offshored services has faced a higher degree of resistance and more change management issues than IT services.


For now, major players in the BPO industry are countries like India, China and the Philippines, but in the coming years countries like Malaysia and Indonesia will also set their foot in the market. This will give birth to new challenges like low labour cost, competition to provide efficient services, etc


How Automatic Intelligence and Technology will affect the BPO industry


Emerging technologies and robotic process automation (RPA) have begun to turn the industry on its ear. For the most part, the work that gets outsourced to remote locations is the bottom-of-the-pyramid work, and as RPA capabilities advance, those processes are increasingly ripe candidates for minimizing or removing human intervention altogether. For better or worse—better for cost savings, speed and efficiency and worse for all the jobs that will be lost to RPA—this capability is slowly making its way into all industries and all types of business processes.


The growth in technology will surely affect the manpower invested in the BPO industry and we will have to find alternative ways to cope up with the rapid growth in technology, which is a reality.


But with the growth in technology new work sectors will emerge where new skill set will be required, so what we can do is stay updated with the booming new technologies.


Difference between a Call Centre and a BPO


Note: Not all call centres are BPOs and not all BPOs are call centres.


BPO & Call Centre are used interchangeably most of the time, but there is a subtle difference in meaning between the two. The key difference is a BPO Company performs back-office tasks of any business like customer support or accounting functions, whereas a Call Centre Company handles just telephone calls.


There are BPOs where the work is making and receiving calls, they can be called call centres. There are other works like handling of billing of the companies or maintaining records, done by the BPOs, these processes cannot be called as call centre work. Also, there are companies those who have their won employees to attend calls and they don’t outsource their work, they cannot be called as BPOs.