BPO and outsourcing trend

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There are many different ways when reminding about BPO: “Rent out the process of the business” or “Service business”  or “Outsource service”.

BPO is a concept that refers to the use of related services by external professional vendors rather than in-house self-organization to reduce costs and increase competitiveness and capacity to promote the strength of the business.

The BPO’ concept has been mentioned in Vietnam since late 2005, but according to IDC's survey, only 17% of Vietnamese organizations and enterprises that have reported using BPO services by 2007. BPO services are provided by many companies, such as: security, financial accounting, law and IT projects.

At present, there are many businesses that do not understand what BPO service is? What are the benefits and what should be considered before deciding to deploy BPO?

BPO service providers are divided into three categories:

  • BPO Offshore Company
  • BPO Onshore Company
  • BPO Near Shore Company

Offshore BPO companies are companies located in a different country from their customers. Most Offshore BPO companies are in India, Philippines, China, Pakistan ...

Onshore companies are run by companies in the same country. This means that a US-based company hires another US-based company to provide chat support and of course the service is also provided by a US-based call centre.

BPO Near Shore is a company located in the neighbouring country. Example: A company located in Canada that provides services to a company based in the United States. Call centres located in the Dominican Republic, Rumania, Costa Rica, Mexico ... providing services to US companies are typical examples of BPO Near Shore companies.

Most of BPO companies around the world are not in the same country as the companies they serve, and most of them offer services like call / contact centre, data entry, response. email, or telemarketing ...


In this article we will review the main benefits of BPO outsourcing

Minimizing costs: Minimizing costs to the maximum is the primary benefit that Outsourcing Business Process provides. Outsourcing companies operate at very low cost, especially BPO Offshore. The average charge for technical support or customer care services for a call centres in the US is between $ 15 and $ 20 an hour, however, the price for equivalent work in India is only $ 8-12 per hour. In Vietnam, the average price is 8 million VND per person in a call centre.

Quality of service: Offshore BPO companies focus on providing high quality service to customers. Data security parameters or quality indicators such as ISO, BS 7799, 6 Sigma, and COPC are studied and applied to maintain high quality standards.

24/7: Foreign call / contact centres operate 24 hours a day, 7 days a week and 365 days a year. This is a great advantage for the continuous customer care needs of the business.

Today BPO companies are growing at a rapid pace. The giants like GE, American Express, IBM, Convergys, Aegis, Wipro and so on have about 10,000 employees serving in different fields. Looking at the development of BPO companies, it would be wise to decide on investing in this industry. Experts predict that the number of companies offering rental services in the coming years, opens up opportunities for everyone.

In order to provide BPO services, businesses must be able to innovate and move towards providing services on a large scale that can share risks with customers and be able to offer full service. package. Comparing these criteria, few Vietnamese enterprises dare to "engage" in the field of BPO services.

Outsourced personnel services include IT services, tax accounting, security, payroll management, internal audit, records management, recruitment, training, call centre, data centre, head hunter etc. And it will become an indispensable trend for organizations and businesses. BPO is considered as a cost-effective way to organize work or produce the products that a company needs. And that is not the key service or product in maintaining the company's position in the market, so they can outsource.

( VCloudcom technology)

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