The Essential Guide to BPO-Powered Contact Centers

We talk a lot about elevating your customer experience around here. But let’s face it – in today’s quickly changing, hyper competitive market, clear and effective communication and reliable, consistent, customer service are more than table stakes. They are a competitive differentiator. And that is where Business Process Outsourcing (BPO) comes into play.

For companies looking to scale their operations while keeping costs in line, partnering with a third-party vendor to deliver consistent, exceptional service can be a smart and strategic move. Working with a BPO contact center partner can simultaneously reduce your overhead while allowing you to improve your overall customer experience.

Elevate Your Understanding of BPOs

We’ve worked with some really smart partners to put together this guide that explores what BPO contact centers are and how working with them can benefit your business. In it, we will cover the different types of BPO contact centers, the advantages of outsourcing your call center operations, and will offer some practical tips for making your outsourcing experience a success. Plus, we’ll explore how you can use AI tools – yes, like ElevateAI by NICE – to elevate your customer service strategy. In subsequent posts, we will dig deeper in to BPO-related topics – you can find them all by clicking here.

What is a BPO Contact Center?

BPO-powered contact centers are operated by customer service-focused third-party providers that specialize in managing customer interactions. They step in to manage everything from customer service operations to outbound sales, acting as a representative of the client organization. While they perform the same functions as in-house call centers, the key difference is that these services are outsourced – and it is this detail that’s so important.

Contact center outsourcing allows businesses to take advantage of the skills, technologies, and economies of scale that come with working with a BPO agency. Customer service outsourcing gives you access to a team of highly skilled call center agents without the challenge of recruiting, training, or managing the technical aspects of a contact center. It is a highly efficient way to focus your resources on what you do best, while ensuring your customers receive exceptional service.

Types of BPO Contact Centers

Broadly speaking, BPO contact centers can be broken down into three categories:

1. Inbound call centers. Agents at inbound call centers focus on handling incoming calls such as bill payments or technical support. For instance, utility companies and retailers use inbound call centers to supplement their U.S.-based workforce during busy seasons, providing them with additional surge capacity and enabling them to adjust to increased call volumes without impact on customer experience.
2. Outbound call centers. At outbound call centers, agents generally perform sales or market research calls and may also handle things like debt collection. Mobile phone providers are known for using BPO providers for their sales and debt collection efforts and have outsourced some of their call center operations to call centers based in the Philippines and India, to take advantage of the lower cost of operations in those regions. Companies often shift the geographic base of their offshore contact center operations when changing providers, adjusting service levels, or making changes to strategy or technology goals.
3. Omnichannel contact centers. Omnichannel contact centers cover both inbound and outbound calls while expanding beyond them, to include text-based chats and chatbots, social media, and other communication channels, unifying the data obtained from each of these sources to ensure good customer service. One Global BPO company reported 12-15% improvement in conversion rates when it started using omnichannel communications solutions to improve overall business operations.

While the broad-based categories outlined above cover the core BPO offerings, there are also contact centers operating as hybrids, with some team members handling only outgoing calls while others focus on incoming calls. Other contact centers may be staffed to handle omnichannel accounts, or even to provide remote desktop control for tech support but are cross-trained to take on telephone-only accounts if needed.

Pro Tip: Set Clear Expectations Early. When considering a partnership with a BPO company, make sure to have an open and detailed discussion about your requirements right from the start. This helps ensure that your potential partner fully understands your needs and can confidently deliver the services you expect. Clear communication in the beginning can set the tone for a successful collaboration down the line!

Benefits of BPO Contact Centers

In today’s competitive business landscape, organizations are continually seeking ways to enhance efficiency and improve customer experiences. By outsourcing your customer service operations, you can unlock a host of benefits that not only streamline processes but also elevate customer satisfaction.

Key advantages of using BPO contact centers include:

• Increased Customer Satisfaction. Customer expectations are at an all-time high. Your customers want their questions answered accurately, politely – and quickly. BPO contact centers are staffed with trained agents specializing in customer service who have experience with clients across multiple industries. And because delivering quality service is their primary focus, BPO organizations are committed to consistently meeting and exceeding customer expectations.
• Reduced Hold Times. One of the most frustrating aspects of customer service is long wait times. BPO contact centers often employ cross-trained agents who can manage multiple accounts, allowing them to provide surge capacity during peak call times. This means that when unexpected call volumes occur, the cross-trained agents can step in to ensure that all calls are answered promptly, and accurately, delivering against the service level agreements (SLAs) established with your organization.
• Cost Reductions. Outsourcing customer service can lead to significant cost savings. BPO providers benefit from economies of scale, allowing them to reduce staffing and technical overhead costs. With the necessary infrastructure already in place – including software, phone systems, and call-routing solutions – your outsourcing partner can manage end-to-end operations efficiently. They also have experience in hiring and onboarding staff, enabling them to quickly source qualified employees who can deliver high-quality service from Day One.
• Improved Scalability. Managing an in-house call center comes with challenges, especially when forecasting staffing needs for varying call volumes. BPO contact centers have pools of trained staff ready to handle excess call volume, providing a flexible solution that allows for scalability. This approach not only reduces overhead costs, but also ensures that you can manage peak periods without the stress of hiring and training seasonal staff.
• Increased Flexibility. Your in-house team may excel in sales and general customer interactions, but can they handle specialized areas like technical support or market research? Partnering with a BPO provider opens the door to a wide range of advanced services, including omnichannel customer support and specialized interactions that your in-house team may not have the expertise to deliver. This flexibility allows you to adapt to changing customer needs without overwhelming your internal resources.
• Expert Contact Center Leadership. Managing a contact center involves navigating complex operations, from forecasting call volumes to onboarding and training agents to managing new and existing contact center tech stack requirements. BPO providers bring extensive expertise in these areas, ensuring your customer service operations are handled effectively and efficiently. By collaborating with a BPO contact center, you gain access to this specialized knowledge, allowing you to focus on your core business while your BPO partners handle the intricacies of customer support.
• Access to a Global Talent Pool. One of the often-overlooked benefits of outsourcing is the ability to tap into a diverse, global workforce. If your BPO provider uses remote agents for phone and chat support, you suddenly have access to a much larger pool of potential employees. This can be particularly helpful if you are looking for multilingual agents or individuals with specific skill sets. A larger talent pool enhances your ability to meet diverse customer needs effectively.

In an environment where margins are tight and competition is fierce, improving efficiency is essential.

Pro Tip: Look to the experts to improve your results. Outsourcing your customer service operations to a BPO contact center is an effective way to tap into the expertise of customer experience (CX) specialists, while benefitting from their expertise and enjoying cost-effective solutions. By embracing this strategy, you can improve customer satisfaction, streamline operations, and ultimately, can enhance your overall business results.

Key Considerations for Choosing a BPO Contact Center

As companies increasingly turn to outsourcing, the selection of a BPO contact center becomes a business critical decision. With countless options available globally, organizations must navigate a diverse landscape of BPO services, with options ranging from general call center operations to delivering specialized expertise. Here are some key things to keep in mind when choosing a BPO contact center partner:

• Time Zones and Accessibility. Time zone differences can significantly impact communication, accessibility, and service quality. While many BPOs offer 24/7 support, this level of availability often comes at a higher cost than services outside regular business hours. To mitigate expenses, consider nearshoring – or partnering with a BPO provider located in a similar time zone to your own. This approach not only reduces costs but can also enhance real-time communication and collaboration.
• BPO Experience and Track Record. The experience of a BPO provider is crucial. When selecting a BPO partner, look for a company with a proven track record that aligns with your specific needs. Engage with current and past clients to evaluate their overall satisfaction and assess whether the BPO provider consistently met service level agreements (SLAs). Ask about the onboarding process and find out how effectively the BPO handled challenges throughout the relationship. A seasoned provider will have valuable insights that can streamline your collaboration throughout the partnership.
• Relevant Expertise. While you may have the opportunity to train call center agents during the onboarding process, it is helpful to partner with a BPO that has existing experience in your industry. For example, if you plan to outsource market research, choose a provider that has successfully conducted similar research studies. Aligning your needs with the capabilities of your BPO partner ensures a smoother day-to-day operation and a higher quality of service, overall.
• Technology Infrastructure. Evaluate the technological capabilities of the BPO contact center. Consider the number of inbound lines they can manage, the quality of call connections, and the effectiveness of their call routing systems. If you require omnichannel support, ensure that the provider can meet your specific service needs and has the backend infrastructure to equip agents with all necessary information.
• Communication System Reliability. A strong communication infrastructure is essential for uninterrupted service. Investigate the provider’s business continuity and disaster recovery plans. Understanding their history of outages and how they manage inbound calls during such incidents will help you gauge their reliability.
• Enhanced Data Security. Data security should be a top priority when selecting a BPO. Ask about existing data protection policies, especially if they allow remote work. Understand how they secure sensitive customer information, particularly if they handle financial transactions. Investigate their history with data breaches and their protocols for detection, mitigation, and reporting any data breaches as they occur.
• Regulatory Compliance. Regulatory guidelines vary widely by state, by country, and by continent. Ensure that your BPO partner operates in compliance with relevant regulations such as GDPR, HIPAA, or COPPA – and if they work with third-party data processors, confirm that those companies also adhere to strict compliance standards. For businesses that operate across multiple territories, operating within the highest compliance standards is not only a best practice, but is also a vital step in safeguarding their reputation – and yours.
• Pricing Models and Contract Terms. Examine the pricing structures of your potential BPO partners closely, looking at everything end-to-end. Costs can vary widely, from flat fees to per-call or per-ticket rates, and it is essential to understand your anticipated call volume and associated expenses. Look closely at contract lengths and consider negotiating a short-term trial period to evaluate the partnership before committing to a long-term agreement.
• Service Level Comparisons. Comparing service levels across potential BPO partners can be challenging, as the details can appear similar – and the similarities may appear negligible at first glance. If you are considering a significant contract, request an on-site visit to the contact center. Observing the work environment and speaking with team leaders can provide valuable insights. If possible, participate in sample calls with agents to experience firsthand what your customers will encounter – and what your agent partners will deal with, from software to screens to SLAs.
• Cultural Fit and Brand Alignment. Your frontline service agents are often the face of your brand. It is essential to choose a BPO partner whose approach aligns with your company culture and values. Differences in communication styles or cultural references can impact customer interactions. For instance, if your brand targets a more formal, high net worth demographic, selecting a partner that employs younger agents unfamiliar with formal communication nuances could lead to misunderstandings.

Choosing the right BPO contact center is more than just a business decision; it is about delivering outstanding customer experiences that reflect your brand’s mission and values across every interaction. By considering factors such as time zones, experience, expertise, technology, security, compliance, pricing, and cultural fit, you can make an informed decision that enhances your customer service operations. In today’s competitive environment, an exceptional CX is key to building lasting relationships and ensuring business success.

Pro Tip: Experience matters. Agent experience is everything – and it fuels the customer experience, particularly when it comes to a BPO partnership. Organizations have changed BPO providers due to cultural mismatches. When making an initial selection and working through the onboarding process, ensure that your outsourcing partner understands your brand’s voice, tone, and target audience. This initial alignment is crucial for delivering an exceptional customer experience.

Best Practices for Successful BPO Contact Center Partnerships

Outsourcing customer support can be a game-changer, particularly when that success is based on trust and effective communication. Here are seven key components to a successful BPO partnership:

1. Clearly Defined Goals. Establish your objectives upfront. If your intent is to manage high call volumes, communicate – and document – this clearly from the beginning. Achieving strategic alignment, to include a mutual understanding around goals, sets the stage for success.
2. Create Comprehensive Documentation. Context is king! As you onboard your BPO partner, provide as much detailed documentation about your messaging and branding, communication style, and internal policies as you have available. If you work with multiple outsourcing partners, build in and ensure consistency across procedures and practices. Even seemingly minor details – like how to write out your company name in email messages – are important when it comes to projecting a unified brand image in day-to-day interactions.
3. Face-to-Face Training. As we learned during the pandemic, interactions can take place anywhere, but nothing can match a face-to-face training session. Whenever possible, arrange for a representative from your company to work directly with BPO agents to train them in person, particularly during the early days of the partnership. These interactions will help to bring your company’s brand voice to life and will give agents a real-time view of your customer interaction style.
4. Use Technology to Simplify Processes. Take advantage of opportunities to integrate new technologies where it makes sense, using new and existing technologies to enhance operational efficiency, streamline workflows, and minimize errors. Work with your BPO partners to identify opportunities to use in-house tools to simplify or streamline operations.
5. Establish Reporting Protocols. Identify your essential key performance indicators (KPIs) and set clear reporting schedules to maintain visibility to your BPO’s performance. If you’ve agreed to a trial period, early reports will provide key insights into overall effectiveness.
6. Schedule Regular Check-ins. Even with the best partnerships, mistakes can happen. Establishing a regular meeting cadence can help refine the team’s understanding of your brand voice and improve service quality. Approach check-in sessions collaboratively, working to resolve any outstanding issues and enhance performance.
7. Treat Outsourcing as a True Partnership. Remember, both you and your chosen BPO provider share the same goal: achieving mutual success. Treat your partner as a team member, working together to solve challenges and build a sustainable, productive relationship.

Pro Tip: Creating a strong foundation helps everyone. By investing time in a thorough onboarding process and establishing clear lines of communication, your BPO partner can deliver outstanding customer experiences, enhancing your operational efficiency and ultimately, your reputation.

How ElevateAI Can Enhance BPO Contact Center Performance

The more data you can provide your outsourcing partners, the more effective they will be in providing a consistent, and exceptional, customer experience. One challenge many organizations face is making sense of all the data produced by their ticketing systems and contact centers.

ElevateAI by NICE provides a variety of features to help you evaluate the performance of your contact centers, predict call volumes, and even track your customer sentiment, as they engage with your brand. Our suite of tools and offerings includes everything from transcription and advanced artificial intelligence (AI) models to a Generative AI (Gen AI)-powered feature suite and reporting and data visualization tool. Key among them?

• Audio Insights. One common concern when outsourcing call center services is maintaining call quality and ensuring a positive customer experience. ElevateAI addresses this with its advanced AI-powered transcription, which converts audio into analyzable text using market-leading speech-to-text transcription technology. Gain deep insights into customer interactions, allowing you to analyze key metrics like voice inflection, speech rate, background noise, and even sentiment. By leveraging the best of NICE’s AI research and technology at low cost through our transcription offering, ElevateAI empowers you to monitor and improve call quality, ensuring your customers receive exceptional service across every interaction.
• Quality Assurance. Monitor call metrics and be alerted to poor KPI performance or identify potential areas for improvement. Use ElevateAI’s transcription insights capabilities to analyze sentiment, keywords and entities, identifying areas where a particular agent is frequently failing to resolve calls or sowing negative sentiment data and may need retraining in certain areas. Or use our new Agent Coaching Assistant feature to identify opportunities where your agents could improve the customer service experience across, and throughout, your interactions.
• Sentiment Analysis. Gather sentiment metrics from text chats and social media engagement, as well as from voice calls. ElevateAI helps you understand current levels of customer satisfaction and using ElevateAI Explore, allows you to dig into how well your agents are performing over time, individually and as a group.

And yes, all of the capabilities listed above draw upon the NICE tech stack. When you work with ElevateAI, we’ll help you get started with our patented NICE technology without the need for a lengthy sales and onboarding process. Just as your customers want to hit the ground running, so do you – and that is exactly what the ElevateAI by NICE team can help you achieve.

Pro Tip: Use new technologies to streamline processes and improve results. Leveraging new technology innovations like the Generative AI-powered features available from ElevateAI by NICE can help you incorporate AI into your workflows, while reducing after call work (ACW) for your agents, simplifying reporting, or delivering the ultimate customer experience.

Why Outsource to a BPO Contact Center?

Collaborating with a BPO contact center partner can lead to significant benefits, including cost savings, improved customer service, and enhanced organizational flexibility. If you are finding it challenging to scale – or if managing contact center operations is taking time away from your core business – outsourcing might be worth considering.

Whether you choose to outsource all or part of your customer service offering, choosing a good outsourcing partner can be a strategic move and an investment in the long-term success of your business. Building a solid relationship with your BPO provider can lead to better call handling times, improved customer sentiment, and a clearer understanding of key performance indicators.

Having insights into your organization’s customer experience metrics is invaluable. With tools from ElevateAI by NICE, you can access data and insights that can help you optimize your outsourcing efforts and while enhancing your bottom line. Learn more about ElevateAI and how we can help you and your BPO partners streamline improvements to your customer experience offerings:

• Access the ElevateAI Features Hub
• Learn more about our new Generative AI offerings
• Watch our recent profile with CX Today, complete with demos and use cases
• Visit ElevateAI for Partners to request special partner pricing and support resources
• Start for free today >> elevateai.com/getstarted