Difference Between BPO and Call Center: How they are different?
- Last Updated: 15 Feb 24
- 13 min read
We frequently make the error of combining the words Call Center Outsourcing and BPO (Business Process Outsourcing). We’ve been doing it for so long that we’ve never considered the possibility that these two names have different meanings. 🤔
They may appear to be the same and have some similarities, yet they have significant differences. In this blog we will help you understand the major differences between BPO and call centers.
🔑 KEY POINTS
- BPO and call center are not same.
- The key difference between BPO and call center is BPO covers a wide range of tasks, involving customer interactions, HR, accounting, sales and marketing.
- A call center is a type of BPO but a BPO cannot be classified as a call center.
- A BPO firm works behind the scenes, whereas a contact center focuses on interactions between callers or customers.
So, stick till the end to know them comprehensively! 👇
What is BPO (Business Process Outsourcing)?
BPO (stands for Business Process Outsourcing) is the process of outsourcing typical business tasks to a third party. BPO has extremely impressive features such as excellent customer service, accounting, payroll, human resources management, and more.
BPO may provide companies with more cost-effectiveness and scalability. Third-party providers’ expertise in a certain duty, such as payroll, are more efficient and may pass those savings on to their customers.
What is a call center?
A call center is an integrated service provider that manage incoming and outgoing phone calls from existing and potential clients.
Inbound and outbound calls can be handled by call centers located within a company or outsourced to a call-handling company.
Call centers frequently provide billing, telemarketing, debt collection, and other services. They also help consumers and brands communicate more effectively, whether through service and support queries or by ensuring that the relevant departments handle requests.
What is the difference between BPO and Call Center?
The key difference between BPO and call center is BPO covers a wide range of tasks, involving customer interactions, HR, accounting, sales and marketing. On the other hand, call centers mainly handle customer communication and service.
A call center specializes in telecommunications-related operations hired by another company or agency, BPO companies undertake a wide range of services not limited to communications.
A call center is a type of BPO. A BPO, on the other hand, cannot be classified as a call center because they are responsible for considerably more than just making and receiving calls and processing communications for their clients.
Another important difference between call centers and BPO companies is the location of their primary activities. A business processing outsourcing firm works behind the scenes, whereas a contact center focuses on interactions between callers or customers and agents and delivering customer support.
Some front-office jobs are shared across BPO businesses, whereas call center employees never handle many back-end operations.
The following table below concludes the major difference between BPO and Call centers:
|BPO (Business Process Outsourcing)
|A call center’s primary function is to keep existing clients satisfied while convincing future consumers through phone calls.
|A BPO service’s major function is finance and accounting, sourcing and procurement, human resource outsourcing, etc.
|Only the front office processes
|Back-end processes and front-office processes.
|Lower services than BPO
|Higher Service than a call center
|Flexibility and scalability
|Limitations in terms of scalability
|Offers flexibility and scalability
|Basic computer knowledge and fluency in the required language
|Advanced computer skills and high-skilled in the required language
|Customer calls or makes sales calls
|Different factors include finance, web development, software development, product development, email support, chat support, and many more.
There are mainly three types of BPO such as:
- Onshore Outsourcing
- Nearshore Outsourcing
- Offshore Outsourcing.
1. Onshore Outsourcing
Onshore outsourcing is when a company hires a service provider based in the same country as they are in. Although these business process outsourcing firms are established in the exact country, they might differ.
2. Nearshore Outsourcing
Nearshore outsourcing is when you outsource your company’s effort to a neighboring nation or nearer place. When specialized abilities are available at a lower cost in a neighboring country, this type of outsourcing is used, but certain criteria, such as time zones and language proficiency, should be considered.
3. Offshore Outsourcing
Offshore outsourcing is used when a company hires a company based in another country to complete certain tasks. Various factors encourage offshore outsourcing, including available resources, social stability, cheaper labor costs, and different tax benefits.
What are the Different Types of Call Centers?
There are mainly three sorts of call centers, and those are mentioned below:
- Inbound Call Center
- Outbound Call Center
- Virtual Call Center
1. Inbound Call Center
An incoming call center receives inbound call center calls. It is most commonly a service supplied to existing customers or potential consumers wanting to make a purchase, but it may also involve giving service to your company’s employees. These call centers usually serve customers who require help solving problems or receiving instructions.
2. Outbound Call Center
An outbound call center focuses on making phone calls on your behalf and can be a low-cost solution to expand your business’s reach. Selling to new consumers and expanding your sales reach are two common tasks for representatives at outbound call centers.
3. Virtual Call Center
A virtual call center is one in which the company’s personnel are widely separated rather than stationed at a single workstation. Virtual call centers may work in groups in distant offices or from home.
Now, you know about different call centers that can help you set up an aim for business. Moreover, before selecting one of the calls mentioned earlier, you should know about a few benefits of using a call center to understand it completely.
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What are the benefits of Business Process Outsourcing (BPO)?
There various benefits of BPO are mentioned below:
1. Reduced cost
Every business wants to do fewer expenses but wants better performance, and BPO helps estimate the cost by increasing productivity and raising income remarkably.
Reduced costs help maintain through process improvement, reengineering, and benefit from technologies that relieve and convey executive and other costs underneath your control.
Business Process Outsourcing helps the company continue the lower rates with superior service keys and gives them a more suitable market rank than competitors.
2. Improved Work efficiency and speed
Business Process Outsourcing involves experts for every task, saving time, and enhancing productivity and capacity by automatically improving accuracy, which improves the efficiency and speed of tasks.
For example, A web design and search engine optimization (SEO) BPO ensures that a local company’s website is designed using the most up-to-date technology, best practices, and customer preferences.
The local business does not have to worry about generating leads because the outsourcing firm does it for them.
When a local firm handles all web design and SEO chores, it can handle more leads and website traffic.
3. A slight edge in the competition
Companies can concentrate their resources on the most important company operations via outsourcing. They won’t have to be concerned about the bookkeeper’s and accountant’s performance.
Instead, they can concentrate on duties that distinguish them from their competitors. They can concentrate their attention on expanding the company.
In the end, these initiatives boost the company’s competitive edge and actions across the value chain. Customer happiness and profit are improved by focusing primarily on essential business functions.
4. Increased Flexibility
When it comes to risk management for bringing new offerings to clients, a firm that outsources functions can act faster and more efficiently. These businesses can also better alter their internal resources to cover more vital functions.
5. Advantages of the time zone
Some outsourcing companies can assist consumers in more than one language, and they can do it 24 hours a day, seven days a week.
The primary corporation is not required to take on this role, but it can ensure that consumers are cared for regardless.
Local businesses might also benefit from outsourcing providers’ assistance in establishing a presence outside of their nation.
What are the benefits of using a call center?
There are different benefits of using a call center, such as:
1. Reduced Costs
The call center is effective in the budget planning of an organization. One doesn’t have to hire a full-time employee in the call center. And, if it features outsourcing services, then it can be cheaper than establishing an entire system in the building.
2. Saves time and money
The company doesn’t need in-person to receive calls, and you can work from anywhere. Call center business saves time and money and is accessible to all company employees remotely.
A call center also provides availability to monitor your calls 24/7 is often cheaper than hiring one person to cover your calls full-time.
Despite hiring people, wages, benefits, equipment, and other needs, you can hire a call center to do the same job for less overall.
3. Improved Call Quality
A call center is expected with better call quality. It is one of the essential features and ensures customer conversion if you emphasize providing a smooth customer experience.
4. Detailed analysis of phone calls
Call centers analyze phone calls and produce personalized reports that track call volume, customer satisfaction ratings, and the latest trends.
You can trace days to manage staff schedules to ensure compatible service levels. It helps to calculate call center performance and keep your agents developing a healthy spirit of competition. It will put in the extra effort to resolve customer complaints and perform to the best of its abilities.
5. Boost Brand Reputation
Call centers can be dispatched to boost the company’s image. It’s built to swiftly answer calls and provide excellent customer service 24/7.
For example, a call response informing clients that an agent will contact them shortly will make your company appear more professional.
Is BPO a Call Center? Are BPO and call center same?
No, BPO is not a call center. They are not same. In the earlier stages, the BPO was offering the features of a call center.
However, now BPO considers different things such as call support, email support, web development, SEO presences, marketing presence, etc., and is an entire set of services that outsources a business limiting itself as a third-party service provider.
Conversely, the call center can be defined as the subset of BPO built to provide the organization’s customers by giving clients a satisfying answer to their queries over their preferred platforms such as phone calls, messages, social media, and many more.
A call center is a subset of a BPO organization that focuses on handling customer concerns. It usually just involves phone work. Conversely, BPO covers call centers and other outsourced back-office functions in its services.
If the required process to be outsourced needs technical or professional abilities with a degree, it is recommended that business owners use a BPO provider. Alternatively, call centers are the logical choice when seeking a cost-effective customer care solution.
The main difference between involving a BPO and a call center is a BPO company will require you to have a specific set of skills to align with the client’s tasks that arise on a need-basis, whereas a call center only requires to have excellent communication and negotiation skills to properly address the customers’ needs.
Now that you’ve learned everything there is to know about contact centers and BPO, you may be wondering, “What should I choose?”
And hey, wait, here is a team that can help you out through both Call Center and BPO services. KrispCall provides Call Centre and BPO services, including Inbound Support, Answering Service, Technical Support, Customer Service, Inbound Sales, Order Taking, Outbound Support, and Chat & Email Support.
You can contact or inquire about Krispcall for free to better know about the call center and BPO.