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How is a BPO Run and Managed Part 1

Let's again go back to the basics and understand this in detail. While I am using the term BPO very often, I also want to talk very briefly about the difference between a BPO/BPM and contact center.

Example: Company A: This is a US telecom company that sells monthly subscriptions to customers and selling the subscription includes the following:
  • Lead Generation: Finding the customers
  • Sales: Getting in touch with the customer, explaining various subscriptions to them and eventually getting the customers onboard
  • Billing & Collection: Sending monthly invoices and collecting payments
  • Customer Service: Servicing customers by handling their queries and addressing complaints to ensure that the customers are happy

For this kind of a business the company will have to set up various departments and teams and maintain large pools of staff. Let's take a look:


  • Lead Generation Team

    1. Back-office Research team for online research team
    2. Calling team that calls the customers to find out which service are they currently using

  • Sales Team

    1. Telephonic sales team
    2. Back office sales team - Chat / email support

  • Billing & Collection Team

    1. Back office Billing and collection team that creates bill
    2. Telephonic Team to call the customers for late payments and collect payments over the phone

  • Customer Service: Servicing customers by handling their queries and addressing complaints to ensure that the customers are happy

    1. Back office support for chat / email queries and complaints
    2. Telephonic support
    Now rather than managing all the above mentioned work and staff, the company choses to outsource this work to another partner company which is an expert in managing telecom businesses. This way the company not only gets telecom experts to handle their business but they also shift the cost/per staff to a lower cost by moving the work to a low cost location (Mostly in Asia).

    Any outsourced work that involves telephone calls and real time support is termed as "Contact Center" and other work such as email support or Bill generation is called "Back office" which is a part of BPO/BPM.

    Now if this is clear, we can talk further about the following:

    • Basic requirements to start a BPO / BPM
    • How to estimate your initial cost?
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