Business Process Outsourcing (BPO) – Sending Your Total Workload To Other Countries

in business-process •  6 months ago  (edited)

Total expenses avoided is definitely added to net profits. What is the leading factor that would comprise of a company’s expense versus the total net profit even for large-scale companies? It is the salary of the employees.

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How are these large-scale companies avoid the huge sum of wages being deducted to their profits for them to gain even more? They send all the major work-load to highly skilled and qualified people from other developing countries to cut their expenses. This process is what we call “Business Process Outsourcing”.

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One might be misled to think that “Call Centers” is the BPO itself. I would like to share that it is just one major category of what the Business Processes that are being outsourced in other countries. This could also be an In-House which means that the company itself is built in other countries or tie up with an agency specializing in providing world-class service.

A Business Process Outsourcing (BPO) Company is running thru Information Technology enabled services, (ITES). The primary role of an associate is to act as a virtual help-desk doing the tasks related to the “account” they are servicing.

These are the major advantages of Organizations adopting BPO services:

  • Enhanced efficiency. Key Performance Indicators (KPI) are set as standards to meet all the requirements of the business.
  • Organizational Growth. The Board of Directors can invest more time to expand their business rather than maintaining all operational activities.


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Business Processes that are mostly being outsourced:

  • Customer Service (Billing, Activations, Adjustments, Account-related inquiries, deliveries etc.)
  • Technical Support (installation, troubleshooting, device processing, etc)
  • Sales (Both product and services)
  • Retail Banking (Online shopping)
  • Finance (Card-related concerns)
  • Voice Relay / Captioning
  • Medical Transcription
  • Data Entry / Encoding
  • Human Resource
  • Health-Care
  • Payroll & Book-keeping
  • Technical Writing
  • Language Tutoring / Mentoring
  • Airline Reservations
  • Appointment Setting
  • Marketing and promotions
  • Logistics
  • Web Development / Content creation / Hosting

Let’s take a look at the savings that a Business Owner can save:

Minimum Wage in the United States:

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Screenshot is from Google

It is shown here that the minimum wage in the United States is $7.25 per hour. In most highly developed States where the wages are premium than other teritorries it can also go as high as $11-$12 with office-related jobs. Since the services being offered by the BPO industries are considerably for white-collar jobs then let's stick to the $11 per hour.

Disclaimer: I don't intend not to acknowledge the highly skilled workers since I am just providing data for information purposes only.

The actual and average wage we are getting is $2.00 per hour for career entry employees. It could go as higher than $3.00 per hour based on the tenure being in the industry or even higher. The third party service provider for business owners definitely has a cut from the wages being given to us. Let's say for example the BPO company also receives $1.00 per hour cut for each employees they have. Business owners definitely have more than 50% savings from the wages of the employees alone. Do the math for the monthly savings a business owner can gain with this process.

Incentives given to the employees can be from the BPO company or the Business owners themselves.

The 50% savings from the employees' wages are really quite astounding and definitely can be used for expansion or adding other products or services that ensures growth and profitability.

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Why am I sharing this topic?

I was out recently and have not been active posting blogs because I was busy with my application to a certain BPO company which caters technical support. The project is a US-Based company manufacturing wireless devices and it involves Business-to-Consumer interaction. I will be providing walk-throughs and troubleshooting guidelines in three ways. I will be assisting customers thru inbound calls, email & chat support. Since the company I will be working with is a Third Party vendor that renders this kind of service to the US-Based Company, I would act as if I am really employed in the USA representing the Wireless Device Manufacturing company. I will make sure that all concerns based on our scope of support is addressed for total customer satisfaction.

Should this topic be beneficial to the steemit members?

The awesome bloggers we do have here in are seeking for viable information in which they could also interact by posting comments. If somebody here has a business that would require manning for the operations itself, promotions, marketing and customer-support, then outsourcing a certain process or business function would be really a great option to consider for cost-cutting purposes. It will also provide jobs to other people as well. This kind of information is worthy to be posted here on steemit.
If you have information like this to share that you think would benefit everyone then this is a great opportunity for us to share all our ideas which can also get acknowledged.

Thank you so much for dropping by and reading my post here on steemit! Follow me @fycee and let's connect genuinely.

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Have an amazing day ahead.
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and the next post? oh next post, where are youuu? hehehe

Hello there my dear. Yeah been busy lately because of this and will already start to get employed again from a BPO company that serves a US-Company. It's gonna be very exciting since this is my first time to be a help-desk specialist for technical support.

Yaaaay!!! Congrats!!!