The Third Quarter of TLE - Contact Center Services will introduce you to the types of outsourcing industries, the definition of Business Process Outsourcing, its products and services, and contact centers. As an aspiring CCS practitioner, it is crucial to completely understand how the outsourcing industry works, progresses, and develops.
For this quarter, you will learn the following lessons:
Lesson 1 – Types of Industry
Lesson 2 – Business Process Outsourcing
Lesson 3 – Types of Products and Services
Lesson 4 – Call center agents’ performance metrics
Lesson 5 – Clients’ and customers’ needs for products and services
Lesson 6 –Interactive Communication
Lesson 7 – Hold Procedure
Lesson 8 - Phone etiquette
Direction: Multiple Choice. Choose the letter of the correct answer.
1. This term pertains to having certain job functions done outside a company instead of having an in-house department or employee handle them.
A. BPO B. Business C. Core Process D. Outsourcing
2. This occurs when a company purchases materials or services from another company within the same country.
A. Onshore Outsourcing B. Indoor Outsourcing
C. Offshore Outsourcing D. Nearshore Outsourcing
3. This involves purchasing materials and services within the neighboring countries.
A. Onshore Outsourcing B. Indoor Outsourcing
C. Offshore Outsourcing D. Nearshore Outsourcing
4. This involves a company purchasing services or materials from a company located in another country.
A. Onshore Outsourcing B. Indoor Outsourcing
C. Offshore Outsourcing D. Nearshore Outsourcing
5. This type of outsourcing involves processes that demand analytical, technical and decision-making skills.
A. BPO B. KPO C. ITO D. MO
6. It is the practice of hiring a company to handle business activities for the other company as a third party.
A. BPO B. KPO C. ITO D. MO
7. This refers to a company that decides to have an external company perform one or more of its business processes.
A. Customer B. Agent C. Corporation D. Client
8. They are the individuals or organization that purchase in your company information technology (IT) assisted devices like computers, telephone, and mobile phones.
A. Customer B. Agent C. Corporation D. Client
9. This consists of people working behind the scenes, with no direct involvement or interaction with the customers.
A. Front Office B. Top Management
C. Back Office D. Middle Management
10. It is composed of individuals who interact with customers. Its main focus is sales, marketing, technical support and customer service.
A. Front Office B. Top Management
C. Back Office D. Middle Management
11. This service requires resources and procedures like raising invoices, matching them with purchase orders and reconciling bank accounts.
A. Procurement B. Information Technology
C. Finance and Accounting D. Contact Centers
12. This involves the purchasing process that controls quantity, quality, sourcing and timing to ensure the best possible total cost of ownership.
A. Procurement B. Data Transcription
C. Contact Centers D. Document Management
13. These provide both inbound and outbound voice and non-voice services for sales, customer service, technical support and other business processes.
A. Information Technology B. Call Centers
C. Data Transcription D. Document Management
14. This metric aims to understand how satisfied customers are with the service provided by the agent.
A. AHT B. FCR C. CSAT D. QA
15. It is the percentage of calls that the agent completely addresses the caller’s needs without having to transfer, escalate or return the call.
A. AHT B. FCR C. CSAT D. QA
Outsourcing Explain
In simple terms, “Outsourcing” is defined as the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.
For example, Company A is a restaurant located along Aguinaldo Highway in Imus City.
Since Company A is only a small restaurant, it does not have its own advertising employee to make posters and tarpaulins. Instead, it pays Company B, an advertising company in Palico IV, to make flyers, signs, posters, tarpaulins, and other advertising materials for them.
Why Outsource?
Companies choose to outsource their business because of several reasons:
1. Core Process
Outsourcing allows the company to concentrate on core processes. In the earlier example, Company A does not have to worry about advertising, and only focus on food service, which is the core process of a restaurant.
2. Risk-sharing
Outsourcing helps the organization to transfer certain responsibilities to the outsourced
vendor. In the same example, Company A is a restaurant and is not an expert in advertising; so it gives Company B, an advertising company, the task to create advertisements for them. This way, Company A is sure that their advertisements are done by experts.
3. Save on infrastructure and technology
Outsourcing prevents a company from investing in infrastructure, buildings, or equipment. Being a restaurant, Company A does not need to buy printers, paper, and ink; it also does not need to hire more employees to do advertising. Company B will provide the advertising q services at an agreed cost, which is usually lower than equipment and salary costs.
Types of Outsourcing based on location
Outsourcing has three types, depending on the location of the companies involved.
1. Onshore Outsourcing
This occurs when a company purchases materials or services from another company
within the same country. The example on Company A and Company B shows onshore
outsourcing because they are both located in the Philippines.
2. Nearshore Outsourcing
Nearshore outsourcing involves purchasing materials and services within the neighboring
countries. An example would be a company from Singapore to other neighboring countries such as Malaysia and Indonesia.
3. Offshore Outsourcing
This involves company purchasing services or materials from a company located in
another country. An example is outsourcing to China by American and European companies such as Ford, Daimler-Chrysler, and Volkswagen.
Types of Outsourcing Industries
Outsourcing industries can be categorized into four types, based on the products and services they produce:
1. Manufacturing Outsourcing (MO)
This refers to the use of production facilities of another company instead of using
production facilities within one’s own company or investing in manufacturing equipment.
Examples are famous American shoe companies that purchase the services of factories
in Vietnam.
2. Information Technology Outsourcing (ITO)
ITO refers to purchasing the services of another firm to build or maintain the IT architecture of one’s own company. This includes app development, web design, computer networks maintenance, IT security, etc.
3. Knowledge Process Outsourcing (KPO)
This type of outsourcing involves processes that demand analytical, technical and
decision-making skills. Examples of KPO are data mining, and research and development.
4. Business Process Outsourcing (BPO)
BPO probably offers the widest amount of services. In BPO, any business process is
outsourced by one company to another company. Examples of these processes are
finance, payroll, sales, technical support, and customer service.
ACTIVITIES
Activity 1
Direction: Write ONSHORE, if the given example shows onshore outsourcing; NEARSHORE, if it shows nearshore outsourcing; and OFFSHORE, if it shows offshore outsourcing.
_______________1. A fast food chain in Manila purchases paper bags and containers from a local merchandising shop in Quezon City.
_______________2. A Japanese fish company supplies tuna to a restaurant in France.
_______________3. A beauty products company in UK hires factories in Thailand.
_______________4. A plastic factory in Cambodia supplies materials to Indonesia.
_______________5. A café in Taguig purchases coffee beans from Vietnam.
Activity 2
Direction: Write KPO if the example shows Knowledge Process Outsourcing; ITO if it shows Information Technology Outsourcing; MO if Manufacturing Outsourcing; and BPO if Business Process Outsourcing.
_______________1. Philippine Airlines outsources their IT maintenance to IBM.
_______________2. AT&T, an American telephone company, purchases the customer services of Accenture in the Philippines.
_______________3. A cosmetics company pays for the services of a research company in Germany.
_______________4. A local bookstore pays another company to create their websites.
_______________5. Apple Inc., hires workers and factories in China to produce phone accessories.
Activity 3
_______________1. It is defined as the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.
_______________2. Outsourcing prevents a company from investing in infrastructure, buildings, or equipment.
_______________3. Outsourcing helps the organization transfer certain responsibilities to the outsourced vendor.
_______________4. Outsourcing allows the company to concentrate on core processes.
_______________5. This occurs when a company purchases materials or services from another company within the same country.
_______________6. This involves purchasing materials and services within the neighboring countries.
_______________7. This involves company purchasing services or materials from a company located in another country.
_______________8. An example of this is outsourcing to China by American and European companies such as Ford, Daimler-Chrysler, and Volkswagen.
_______________9. This refers to the use of production facilities of another company instead of using production facilities within one’s own company or investing in manufacturing equipment.
_______________10. This refers to purchasing the services of another firm to build or maintain the IT architecture of one’s own company.
_______________11. This type of outsourcing involves processes that demand analytical, technical, and decision-making skills.
_______________12. Any business process is outsourced by one company to another company.
_______________13. Meaning of the acronym KPO
_______________14. Meaning of the acronym BPO
_______________15. Meaning of the acronym ITO
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