BPO Call Center: What It Is and Key Risks to Avoid

Running a customer support operation requires a hefty investment, and these days, margins matter more than ever. It’s why companies consider opting for business process outsourcing (BPO) — to lower costs and add greater coverage to their service teams. This might not always be the best move for every company, but in this guide, we’ll compare running a call center in-house versus a BPO service provider.

Our guide also explains the meaning of BPO call centers and what they do. It also lays out the pros and cons and the different types to help you determine if call center outsourcing is a fit for you.  

What Is a BPO Call Center?

BPO stands for Business Process Outsourcing. A BPO call center is a third-party service provider that handles incoming and outbound calls on behalf of another company. 

These customer service call centers are built to deliver efficient and effective customer support, allowing businesses to focus on what they do best. BPO call centers can typically handle support across multiple communication channels, such as phone support, live chat, email, and social media. Think of BPO call centers as an extension of your team, fully dedicated to providing the same level of customer service as your in-house team. 

BPO call center agents are highly trained professionals capable of handling various customer queries, whether it’s a simple inquiry about product features or resolving a complex technical issue. For businesses, outsourcing isn’t just about easing the workload — it’s also about improving customer satisfaction, cutting operational costs, and delivering an exceptional customer experience (CX).

Why You Might Need a BPO Call Center

Whether you’re a small business growing rapidly or simply experiencing an uptick in customer support calls around the holidays, you might need to take advantage of business process outsourcing. Long wait times and overwhelmed service agents don’t just create bad customer experiences — they can also take a toll on your employees. That’s where a BPO contact center can step in to save the day.

Here are some common challenges that a BPO call center can help you solve:

😅 Overwhelmed in-house teams: If customer needs are swamping your agents with calls, emails, and chat inquiries, call center outsourcing can lighten their load, leading to faster response times and happier customers.

📈 Rapid business growth: Scaling up an in-house team to match the pace of your growth can be tricky. A BPO offers flexibility, letting you add or reduce staffing as needed without the headaches of recruitment and training.

🍁 Seasonal fluctuations: Does your business see spikes in customer inquiries during holidays or specific seasons? A BPO call center seamlessly helps you manage those busy periods while maintaining top-notch service.

💲 Cost efficiency: Running an in-house call center can be costly. Outsourcing lets you sidestep expenses like infrastructure, salaries, and training, helping you strategically allocate resources.

🌀 Refocusing on core competencies: By offloading customer support to a trusted partner, your team can direct its energy toward driving innovation, refining your products, or expanding into new markets.

For example, say an e-commerce business is experiencing a surge in sales around the holidays. The shop can outsource its customer service during peak call volumes, ensuring seamless order processing and support without overwhelming its in-house customer service team. This proactive approach helps maintain customer satisfaction and allows the company to focus on inventory management and marketing strategies.

How Does a BPO Call Center Work?

Partnering with a BPO call center involves a series of structured steps to align the call center provider with your business goals and deliver exceptional customer support.

✏️ Partner selection and onboarding: The process begins by identifying the tasks you want to outsource, such as handling calls or providing technical support. Once you choose a BPO provider that fits your needs and budget, set clear Service Level Agreements (SLAs) to define performance metrics and expectations. This ensures both parties are aligned from the start.

🧠 Agent training and knowledge transfer: BPO agents undergo training to understand your products, services, and customer journey. They’re equipped to maintain your brand voice and tone while using resources like FAQs and troubleshooting guides for efficient support. A well-organized knowledge base ensures that they can respond effectively to customer needs.

📞 Day-to-day operations: Agents handle customer inquiries and resolve issues professionally, escalating complex problems when necessary. They align with your SLAs, ensuring your team consistently meets performance standards. This allows your business to maintain high-quality service with minimal disruption.

📊 Performance monitoring and optimization: Regular performance tracking helps evaluate metrics like call resolution rates and customer satisfaction (CSAT) scores. Quality assurance processes, including feedback analysis and recorded call reviews, identify areas for improvement. Collaborating with your BPO vendor ensures processes are optimized for ongoing success.

What’s the difference between BPO and traditional call centers? 

At first glance, BPO and traditional call centers might seem similar — they both handle customer interactions. However, the way they operate and their scope of services differ significantly.

BPO call centers:

• Handle not just customer service but also sales, technical support, marketing, and back-office tasks.
• Operate as an external provider with specialized expertise.
• Scale easily, adjusting staffing levels to meet fluctuating demand.
• Benefit from shared resources and reduced overhead costs.

Traditional call centers:

• Manage internal teams employed by the company, providing more direct oversight.
• Align with the company’s culture and values.
• Require investment into infrastructure, staffing, and training.

Both BPO and traditional call centers aim to provide excellent customer service. They both handle incoming and outgoing calls, emails, and other customer inquiries.

The Advantages and Risks of BPO Call Centers

Outsourcing your customer support to a BPO call center can take your business to a new level. From hiring and training skilled agents to managing daily customer service operations, BPO vendors take the heavy lifting off your plate, allowing you to focus on your core priorities. 

While these partnerships can offer significant benefits, like cost savings and scalability, they also come with potential challenges that require careful consideration. Let’s discuss the advantages and risks of using a BPO call center.

The advantages 

BPO call centers offer significant cost savings by reducing expenses associated with hiring, training, and maintaining in-house infrastructure. They provide scalability, enabling businesses to quickly adapt to changes in customer demand without overextending resources. 

With 24/7 availability, BPO providers can serve customers around the clock, enhancing accessibility and satisfaction. Additionally, these providers often bring industry expertise, using specialized skills to elevate the quality of customer interactions. By outsourcing non-core functions, businesses can focus more strategically on growth and innovation.

The risks

While beneficial, BPO services also come with certain risks. Communication challenges may arise due to language barriers, cultural differences, or time zone gaps, potentially complicating interactions. 

Outsourcing customer service can result in a loss of brand control, requiring extra oversight to ensure a positive brand reputation. Sharing sensitive customer information with third-party providers introduces data security concerns, necessitating robust safeguards. Finally, maintaining consistent service quality across large teams can be challenging, making regular monitoring and feedback essential to success.

Types of BPO Call Centers

BPO call centers can be categorized based on the nature of their calls. Let’s compare inbound vs. outbound vs. virtual call centers. 

Inbound BPO call centers 

Inbound call centers handle incoming calls from customers. These centers typically provide customer support, technical assistance, and order processing.

• Customer Support: Address customer inquiries, resolve issues, and provide product and service information.
• IT Support: Troubleshoot technical problems and provide remote assistance.
• Order Processing: Take and process customer orders, handle returns, and answer order-related questions.

Outbound BPO call centers 

Outbound call centers initiate outgoing customer communication. Businesses often use these for telemarketing, sales, and surveys.

• Telemarketing: Generate leads and make sales appointments.
• Sales: Sell products or services directly to customers.
• Market Research: Conduct surveys to gather customer feedback and insights.

Virtual BPO call centers

Virtual call centers leverage remote technology to connect agents with customers. They can handle both inbound and outbound calls, depending on business needs. This allows for:

• Remote work: Agents can work from anywhere with a reliable internet connection.
• Global reach: Your business can access a diverse talent pool from around the world.
• Cost-effectiveness: You can reduce overhead costs associated with physical office spaces.

Recommended: Cloud-Based Call Center Solutions

Get the Benefits of BPO Call Centers with Nextiva

Great customer service can make or break your business, but not every company has the resources to keep up with demand. A BPO call center can offer additional (and expert) support so your customers stay happy while you focus on what you do best.

Nextiva takes it further with its AI-powered, all-in-one contact center solution. With features like omnichannel support, workforce optimization, data and security compliance, and intelligent AI tools, Nextiva makes it easy to deliver top-notch service, boost efficiency, and grow alongside your business.