Telcos typically outsource work on customer service (voice) and some back-office operations. BPOs get 70 per cent of their revenue from voice alone. However, Indian telcos are witnessing a dip in volumes and calls due to the pricing and other wars for customer share in an already crowded market. Telcos are now asking their BPO partners for price reductions of 9-15 per cent to protect their own margins.

Read more Here:

http://www.business-standard.com/india/news/telco-price-wars-hit-bpo-margins/387691/

Business is improving through time. Firms implement strategies and design business procedures that will lead to a more productive operation. Nowadays, the use of information technology or IT is very useful especially in the business world. IT makes Business Process Outsourcing (BPO) possible.

Business Process Outsourcing is the process of transmitting various operational activities and other transactions of a business to a company which acts as a second party. The service provider performs services for the first party provided that the second party has the assurance of a long-term mutual commitment.

There are different categories that comprise the Business Process Outsourcing. These divisions include the internal functions of the business or back office involving the following:

•    Billing or Accounts Receivable section

•    Purchasing or the Accounts Payable section

•    Customer-related services (front office) like marketing or the act of bringing the goods into the marketplace

•    Technical support

Sometimes, the contract is done in foreign countries called offshore outsourcing while a contract between neighbouring countries is called near shore outsourcing.

Disadvantages of BPO

There are also risks of engaging in this business process. The tendency of possible errors committed will affect the operation. Security risks and the possible opposing relationship between the contractor and the organization are some of BPO’s negative areas.

Advantages of BPO

Nevertheless, Business Process Outsourcing is also advantageous for the firm. It makes it more flexible. Fixed costs are being converted into variable costs which make the firm respond to possible changes into a given capacity. Another thing is the company’s focus. It must definitely prioritize its major competencies rather than be sidetracked. Employees don’t have to exert extra effort on non-core processes, thus investing a greater time on core business transactions. A company’s flexibility is also improved because of its increased speed.

In addition, BPO makes the organization very agile. It allows the expansion of a company with the extra help from a perceived ally. While those mentioned advantages are very nice to hear, the risks should still be a word of caution to the firm.  GP

Internal problems include accounting, payroll, financing, and billing functions. If you are having problems regarding the proper and systematic payment of your employees, then it might be a good option to look into specialized BPO.

Some companies think that a thorough reorientation and training of their audit and accounting officers can easily solve this business process problem. They only realize the gravity of the problem once it becomes so severe and hard to solve altogether.
Faced with such a problem, your organization should look into Business Process Outsourcing solutions that will effectively target your need for a systematic payroll system or audit proceedings. There are actually BPO companies that are better at this than your organization. It’s a matter of finding the right organization for the right business function.

BPO Solutions for External Problems

External problems include customer care service or technical support functions. Most organizations have a hard time finding customer care specialists who are both compassionate and knowledgeable about their services. Again, it requires a huge investment on the part of their companies, since they still have to train such employees. Also, the training sometimes does not pay off when customers are still discontent with the service anyway.

Business Process Outsourcing solutions could be your recourse if your problem is as crucial as this. The solutions offered by BPO companies are both inexpensive and integral. There are many call center companies that can thoroughly train and orient their employees as to the products and services your organization offers. You don’t have to invest time and effort in actually training your employees, when you can have another company actually solve the problem for you.

Prioritizing BPO Solutions

The presence of organizational problems is forever. Business Process Outsourcing solutions account for some of the many solutions you can choose to solve those problems—be it external or internal. In the end, it’s a matter of prioritizing which problems you should solve through BPO solutions. After all, not all of your internal and external problems could—and should—be solved by Business Process Outsourcing alone. Before choosing BPO, make sure that you have carefully considered all your options. GP