Are BPO and Call Center the Same? Key Differences

Business Process Outsourcing (BPO) is when a company hires another company to do some of its work or tasks. This allows the company to focus on its main business activities while the other handles the specialized tasks.

For example, a company might hire a call center to handle all those customer service calls, an accounting firm to handle payroll and taxes or sales and marketing to promote products and services. This way, the company saves money, works more efficiently, and gets access to top-notch skills and technologies they might not have in-house. BPO allows companies to scale their outsourced services up or down as needed.

There are two main types of BPO:

Back Office BPO
The Back Office BPO provider is one of the primary categories of BPO service with no customer interactions. Companies hire third-party providers to handle internal work like Human Resources (HR), accounting, information technology, and administrative duties. This helps improve efficiency and lets the company concentrate on its main business activities.  

Front Office BPO
The Front Office BPO provider is the opposite of the back office, which means it involves functions related to customer support. This includes help desks, technical assistance, customer support, and sales. Companies often outsource these front-office operations to improve customer service and support.

BPO works by having a company hire an outside provider to handle specific business processes or tasks. The provider has the expertise and resources to do the work more efficiently than the company could do it themselves.

The company and provider agree on the scope of work, service levels, and pricing. The provider then takes over the specified processes and returns the work to the company.

A call center is a customer service center that focuses on handling inbound and outbound calling or communication. These facilities provide services for incoming calls, such as assisting customers and providing technical support, as well as for outgoing calls, such as sales and telemarketing.

The sales call center generates the potential leads to promote the product and service. Technical customer service helps customers with product issues and provides a possible solution.

Call center agents follow predefined scripts to maintain consistency while providing the information.  This process is followed to resolve problems professionally and maintain a smooth experience for the customer. This helps businesses to enhance customer satisfaction by providing effective support over the phone and improving call quality.

There are two main types of call centers:

Inbound Call Centers
Inbound call centers handle customer calls that are coming in. These calls may be made for different purposes, including customer service queries, technical assistance, placing orders, or asking for information. Inbound call centers aim to provide excellent support and efficiently address customer problems as their primary objective.

Outbound Call Centers
Outbound call centers manage outgoing calls. These calls may involve telemarketing, surveys, collections, or other sales and marketing tasks. Outbound call centers primarily concentrate on generating revenue or collecting customer information.

Call centers work by having a team of trained agents who use computers, phones, and specialized software to handle many phone interaction operations efficiently. Calls are directed to available agents who follow scripts and workflows to provide the right service or complete the necessary tasks. Also, agent performance is often measured by metrics like call resolution time, customer satisfaction scores, and first-call resolution rates.

The BPO call centers are related concepts but are two different terms. Here are several key differences between these two:
 

BPO service provider is highly beneficial if you want to focus on core business, reduce cost, and improve quality service. Here are some benefits of BPO:
 

The company often outsources specific tasks so that they can concentrate on the core activities. It helps the organization by providing valuable time and resources that allow you to focus on main activities. It helps to improve overall performance and further drive your business function growth and success.

BPO company gives businesses access to skilled professionals from around the world. This means they can benefit from diverse expertise without geographical limitations. For example, a company in the United States can offshore outsourcing IT support from India or marketing expertise from Europe, gaining the advantage of varied skills and perspectives that might not be available locally.

BPO companies often use the latest technology and tools to provide outstanding results. Outsourcing to a third-party service provider allows you to utilize technological advancement without investing. These service providers use machine learning, center software, virtual assistants, and automation to provide accurate and faster reports than the companies' in-house teams.

By taking the service from BPO, it improves quality and increases efficiency. Their latest technology, expertise, and experiences lead to better results, saving time, and higher customer satisfaction. They have well-trained and professional staff, ensuring all the work is done effectively and smoothly.

Outsourcing can help reduce risks and solve problems. Third-party providers often have robust processes and backup plans to handle unexpected issues, which can protect the company from potential problems. For example, if a natural disaster affects the company’s main office, an outsourced partner in a different location can continue operations, ensuring business continuity.

Sometimes, tasks like customer service need 24/7 support. In that case, your BPO company can offer 24/7 services to connect with customers anytime. Business tasks can be completed anytime, ensuring continuous productivity and quicker turnover. This enhances service availability and increases customer satisfaction.

A call center can significantly benefit your business if you want to improve sales, customer engagement, and experiences. Here are some benefits of a call center:
 

Call centers are meant to enhance the customer experience by solving their issues and answering their questions promptly. When you receive the call in time, your customer feels valued and heard, which can improve the overall experience with the company. Call centers dedicatedly handle customer inquiries that lead to higher customer satisfaction.

Call centers can handle many customer calls simultaneously, reduce wait time, and ensure faster service. It means more customers can be assisted quickly, improving the company's workflow. Employees can focus on specific tasks, and customer service representatives can specialize in handling call operations efficiently.

Call centers can increase sales by contacting potential clients, presenting special deals, and sharing details about products and services. Sales teams can utilize call centers to follow up on possible leads, which will help increase sales revenue. Customized communication over the phone can also aid in persuading customers to buy products.

Using a call center can be more affordable than setting up multiple individual service points, saving money for the business. Centralizing customer service operations in one location reduces the need for multiple physical offices and staff. This cost-saving measure allows companies to allocate resources more effectively and invest in other business areas.

By offering excellent service and support, call centers help keep customers happy and loyal to the business. Satisfied customers are more likely to return and recommend the company to others. Building strong relationships through consistent and reliable support helps retain customers and reduce churn rates.

Call centers focus businesses on building strong customer relationships, ensuring they feel valued and understood. Regular interaction through calls helps in understanding customer preferences and needs better. This focus on personalized service fosters trust and loyalty, leading to long-term customer relationships and a positive brand reputation.

When deciding between a BPO and a call center, it is important to consider your specific needs. If your company needs several operations like HR, finances, and IT services, choosing a BPO provider that covers a broader range of tasks is better. However, if your business needs only front-end service, such as handling customer support, then it is better to choose call center service. Choose based on what aligns best with your business goal and operational requirements.

The blog shows that BPO and call centers are not the same, even though they are related. Both have been of importance in recent times for businesses to increase customer satisfaction and improve effectiveness.  

Some key differences between BPO and call centers must be understood before choosing the right service according to your needs. BPO covers many business tasks, whereas call centers specialize in communication or customer care.

The call center is part of BPO, which handles various activities like HR, marketing, accounting, and customer-facing tasks.

Companies use BPO services to improve efficiency, reduce costs, and focus on their core business activities by outsourcing non-core functions to experts.

Generally, call centers specialize in customer service. However, some may offer additional services like telemarketing, technical support, and sales.