The Main Differences Between Call Centers And BPOs
Call Center vs BPO: Which is Right for Your Business?
In the ever-changing world of business operations and customer service The phrases “call center” and “BPO” are often seen as essential elements of modern-day business strategies. Although they share a few similarities with regards to customer support and communications however, they differ in their scope as well as their roles and contributions to companies. To understand the constantly changing market of outsourcing and service providers solutions, it is essential to comprehend the difference between a contact center and BPO.
In this article, we will discuss what is the difference between a call center and a BPO and explore their respective contributions to various industries.
Table of Contents
What Is The Difference Between A Call Center And A BPO?
What is the difference between a call center and a BPO? The primary distinction between a call center and the BPO is the range of their activities. Call centers are a particular kind of BPO which focuses on dealing with queries from customers and offering assistance by phone. A BPO however, by contrast offers a greater variety of services, such as:
- Customer service
- Technical support
- Sales and marketing
- Human resources
- Finance and accounting
- Data entry and processing
- Legal and compliance
- Research and development
In general, call centers are part of the BPO. However there are call centers that aren’t part of the BPO like those managed and owned by the business they support.
When to Choose a Call Center vs. a BPO
The decision to go with a call center or BPO depends on a range of variables that include the particular requirements of your company along with your budget and the degree you wish to control. Here are some things to take into consideration when making your choice:
- The scope of services you need: In the case of customer support, the call center could be an ideal choice. However, if you require more options, including technical support as well as sales and marketing as well as human resource management, the BPO might be the better option.
- Your budget: They are generally cheaper than BPOs however they might not provide the same quality of service. BPOs however, on the other however, may be more costly, however they offer a greater variety of services as well as a greater level of expertise.
- Your desired level of control: You want to be in charge of the experience of your customers, then the call center could be the best option. However, if you’re willing to compromise some control to lower costs or a greater variety of services, BPO BPO might be the better option.
This table summarizes the important factors to consider when deciding between a call center or BPO:
| Factor | Call Center | BPO |
| Scope of services | Customer service | Customer service, technical support, sales and marketing, human resources, finance and accounting, data entry and processing, legal and compliance, research and development, etc. |
| Budget | Less expensive | More expensive |
| Desired level of control | More control | Less control |
The best method to determine whether you should choose either a BPO or a call center. Here are a few additional ideas to help you choose the best BPO or call center BPO for your company:
- Get quotes from a variety of companies.
- Read customer reviews and read about their experiences.
- Be sure that the service is reputable in customer service.
- Check out the security measures of the provider and compliance policies.
- Check to see if the service is compatible with your corporate culture.
The Pros and Cons of Outsourcing to a Call Center or BPO
Outsourcing to a call center or BPO has numerous benefits such as:
- Cost savings: Outsourcing can allow you to reduce the cost of labor and also on the expense for equipment as well as facilities.
- Access to expertise: Outsourcing gives you access to a pool of highly skilled and knowledgeable employees who will provide you with an excellent level of service.
- Improved efficiency: Outsourcing can enhance the effectiveness in your company processes, liberating internal resources to concentrate on other projects.
- Increased flexibility: Outsourcing can offer you the flexibility to scale your business operations up or down as required.
- Improved customer service: Outsourcing can help enhance the level of customer care you provide through support 24/7 and providing access to a wider variety of languages and different cultures.
But, there are possible disadvantages to outsourcing to an office or call center BPO for example:
- Loss of control: When you outsource the work, you lose control over your customer experience.
- Communication challenges: Communication can be difficult when working with a third party provider.
- Security risks: There’s always the possibility of data breaches as well as other security threats when you share sensitive data with a third-party service provider.
- Cultural differences: If you’re outsourcing your work to a company located in an entirely different country, you might have to work with cultural differences.
Comparison Table Between Call Centers And BPOs
| Feature | Call Center | BPO |
| Scope of operations | Customer service over the phone | A greater variety of services that include technical support, customer service as well as sales and marketing finance, human resources, accounting data entry and processing Legal and compliance, research and development, etc. |
| Ownership | Can be owned and operated by the company they support, or can be outsourced to a BPO company | Can be operated and owned by the business they represent or be transferred to BPO companies. BPO company |
| Location | Can be located in-house, or can be outsourced to a call center facility | It is possible to locate in-house or contract out to BPO facilities. BPO facility |
| Staffing | Can be staffed by employees of the company they support, or can be staffed by employees of the BPO company | It can be staffed by employees of the business they work for or through employees employed by the BPO company |
How to Choose the Right Call Center or BPO for Your Business
The choice of the right phone center and BPO for your company can be a difficult task. There are many aspects to think about and it’s difficult to determine which direction to take.
Here are some suggestions to help you pick the most appropriate contact center, or BPO for your company:
- Define your needs: The first step is to clearly define your needs. What services do you need? What level of service do you expect? What is your budget?
- Do your research: Once you know your needs, you can start researching potential providers. Get quotes from multiple providers, and read reviews from past customers.
- Consider your specific requirements: There are many factors to consider when choosing a call center or BPO, such as the location of the facility, the languages spoken by the agents, the hours of operation, and the level of training and expertise of the agents.
- Meet with potential providers: Once you have narrowed down your options, schedule meetings with potential providers. This will give you a chance to ask questions and get a feel for their company culture.
- Make a decision: Once you have met with potential providers, you can make a decision about which one is the right fit for your business.
Here are some more ideas to be aware of when deciding on an office or call center:
- Be sure that the service is reputable in customer service.
- Check out the provider’s security and compliance policies.
- Be sure that the company is compatible with the culture of your business.
- Write everything down in writing, including the conditions of your contract, amount of service, as well as the cost.
The Future of Call Centers and BPOs
Call centers’ future and BPOs will likely be influenced by a range of factors, such as:
- The rise of artificial intelligence (AI): AI is currently being used by call centers for automating routine tasks like answering basic inquiries and directing calls to appropriate agents. As AI technology advances it will likely take on a greater part in the call center, allowing agents to perform more difficult tasks.
- The growth of mobile and omnichannel customer service: The growing popularity of omnichannel and mobile service customers are using more mobile devices to reach companies, and they anticipate being able to seek help through various channels like chat, email, phone and social media. BPOs and call centers BPOs are required to adjust to this change by providing an array of customer service channels as well as making it simple for customers to change between different channels.
- The increasing importance of customer experience: In today’s highly competitive market, companies are putting more emphasis on customer satisfaction. This means that call centers as well as BPOs must focus on delivering a superior quality of service that is able to meet the demands of their customers.
- The need for data-driven decision-making: Contact centers as well as BPOs generate a wealth of information on their customers as well as their interactions with business. The information can be utilized to improve customer service as well as identify areas of improvement and help make better business decisions.
- The growth of cloud-based call centers: Cloud-based phone centers are becoming more popular because they provide a variety of advantages, including capacity and flexibility as well as cost-efficiency.
- The increasing use of analytics: The rising use of analytics is being utilized to enhance the performance of call centers through a variety of ways, like finding areas of improvement, anticipating customer requirements and optimizing the way that calls are routed.
- The growing importance of social media: The rise of social media has made it an increasingly important medium for customer service. call centers are responding by offering assistance on social networks.
- The increasing focus on employee engagement: Employees represent the company for many of its customers. Their engagement is vital to ensure an excellent level of service. Call centers are focusing more on employee engagement through providing opportunities for training and development as well as creating a welcoming workplace, and also offering attractive compensation and benefits.
With a better understanding of these trends, BPOs and call centers BPOs are able to position themselves to be successful in the near future.
Frequently Asked Questions
What are the two types of call center?
The two primary kinds of call centers are the inbound call centers, which take the incoming calls of customers and outbound call centers that make calls to prospects or customers to serve various reasons, like surveys or sales.
What is the downside of having a BPO?
A disadvantage to having a Business Process Outsourcing (BPO) arrangement is the loss in direct oversight over specific customer interactions and business processes which could impact customer service as well as satisfaction of customers.
What is BPO in simple words?
BPO (also known as Business Process Outsourcing is the process where the company employs another firm to perform certain processes or tasks typically those that aren’t integral to their business. This is done to cut costs and improve efficiency.
What is a BPO company?
The BPO (Business Process Outsourcing) firm is a provider of services that offers a range of business processes that are outsourced like support for customers as well as payroll, data entry or IT support, to other businesses which allows them to concentrate on their core business while benefiting from savings in costs and the expertise to handle these processes.
What is the difference Between BPO and KPO?
The primary distinction between the two BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) is in the nature of outsourced assignments: BPO handles routine operational procedures, whereas KPO is a specialized, know-intensive task that requires expert knowledge and analysis.
What is BPO in a call center?
In the context of a call centre, BPO (Business Process Outsourcing) is the process of outsourcing particular call center functions or processes, like customer support or telemarketing to outside service providers. The service providers, which are typically specialized BPO firms, perform these tasks on behalf of the client’s company which allows the client to concentrate on its business core operations.
