Understanding BPO Terminology
The Business Process Outsourcing (BPO) industry is filled with specialized terminology that can be complex for both newcomers and experienced professionals. Whether you’re partnering with a call center, exploring outsourcing strategies, or aiming to enhance customer experience (CX), understanding these terms will help you communicate with confidence.
Here’s a comprehensive glossary of essential BPO-related terms.
Key BPO Terms and Definitions
1. Business Process Outsourcing (BPO)
BPO involves contracting specific business functions to a third-party provider, allowing companies to focus on their core strengths while outsourcing tasks like customer support, IT services, and back-office operations.
👉 Learn more about BPO services
2. Call Center
A facility or operation dedicated to managing high volumes of inbound and outbound calls, often for customer service, technical support, and sales.
3. Contact Center
An advanced version of a call center that supports multiple communication channels—phone, email, chat, social media, and more.
👉 Read about the difference between call centers and contact centers
4. Outsourcing
The practice of delegating services or operations to an external company that were traditionally managed in-house.
5. Offshoring, Nearshoring, and Onshoring
- Offshoring: Outsourcing business processes to a distant country to reduce labor costs.
- Nearshoring: Partnering with a provider in a nearby country for better time zone alignment.
- Onshoring: Keeping outsourced services within the same country for greater control and compliance.
6. Workforce Management (WFM)
A strategic approach to scheduling, staffing, and optimizing productivity in customer service operations.
7. Quality Assurance (QA)
A process for monitoring and improving service quality in BPO operations, ensuring customer interactions meet company and industry standards.
8. Key Performance Indicators (KPIs)
Metrics used to assess contact center performance, including:
✅ First Call Resolution (FCR): The percentage of inquiries resolved on the first attempt.
✅ Customer Satisfaction Score (CSAT): A survey-based measure of customer happiness.
✅ Average Handle Time (AHT): The average time taken to complete a customer interaction.
9. Service Level Agreement (SLA)
A contract between a BPO provider and a client outlining service expectations, response times, and quality standards.
10. Customer Experience (CX)
A customer’s overall perception of a company based on their interactions across various channels.
👉 Explore how omnichannel solutions improve CX
11. Agent Assist and AI-Driven Tools
Technologies that support call center agents with real-time insights, automation, and AI-powered recommendations.
12. Payment Card Industry (PCI) Compliance
A set of security standards for companies handling credit card transactions, ensuring secure data processing.
👉 Find out why PCI compliance is important
13. Inbound Outsourcing Services
Outsourcing the management of incoming communications, such as customer inquiries, support calls, emails, and chats, allows companies to handle high volumes of inbound interactions efficiently.
👉 Check out our inbound call center solution
14. Outbound Outsourcing Services
Outsourcing activities that proactively reach out to customers, such as telemarketing, surveys, follow-up calls, and lead generation, supports businesses in boosting sales and fostering customer engagement.
👉 Discover the benefits of outbound call center solutions
15. Knowledge Management (KM)
A structured approach to capturing, distributing, and effectively using knowledge. In a BPO context, KM systems help agents access accurate information quickly, leading to better customer service.
👉 Learn how to create a customer-centric organization
16. Customer Relationship Management (CRM)
Software and strategies that help manage a company’s interactions with current and potential customers. CRM systems are vital in tracking data and improving customer service across all touchpoints.
👉 Discover how to build successful outsourcing relationships
17. Business Process Automation (BPA)
Incorporating technology to automate complex business processes BPA in BPO helps improve efficiency, reduce errors, and free up human resources for higher-value tasks.
👉 Explore the impact of digital transformation on customer experience
18. IT Help Desk Outsourcing
Outsourcing technical support functions, such as troubleshooting, system maintenance, and user assistance, ensuring that IT issues are resolved efficiently.
👉 Learn about technology at the core of employee support
19. Omnichannel Support
An integrated approach that connects multiple communication channels (phone, email, chat, social media, etc.) to provide a seamless customer experience. This ensures customers receive consistent service regardless of the channel they choose.
👉 Discover omnichannel call center solutions
20. Escalation Management
A structured process for handling customer issues that cannot be resolved during the initial interaction. Effective escalation management ensures that complex problems are quickly directed to higher-level support teams for resolution.
👉 Understand frontline supervision techniques
Further BPO Insights
Want to expand your BPO knowledge? Explore these valuable resources:
📌 Inbound Call Center Solutions – How inbound call centers enhance customer satisfaction
📌 The Office Gurus: Your BPO Solution – Learn how we help businesses optimize outsourcing strategies
📌 The Benefits of Outsourcing – Discover the advantages of outsourcing customer service
Final Thoughts
Understanding BPO terminology can help businesses make informed outsourcing decisions. Whether you’re seeking a dedicated call center partner, exploring nearshore outsourcing, or evaluating AI-driven contact center solutions, staying informed is key.
Need expert guidance to optimize your outsourcing strategy? Contact The Office Gurus today. 🚀
