Fact Checked

What Is Telecom BPO?

M. McGee
M. McGee

Business process outsourcing (BPO) is the practice of moving part of a business to a third party that specializes in that form of activity. Telecom BPO allows a company to remove the majority of its mass telephone and Internet usage to another firm. A telecom BPO will answer and make marketing and support calls, handle email-based marketing and information delivery as well as process incoming consumer email. Since the telecom portion of most business operates outside of profit, there is the potential to eliminate a lot of overhead and make the business more successful.

A telecom BPO company generally does nothing outside of telecom activities. These firms often work for a large number of different companies, answering calls, dealing with consumers and sending and receiving messages. Since all of these activities are very time-intensive, these companies often have a very large staff and operate in areas where the cost per worker is low. As a result, these call centers are often found overseas and in rural or poor areas where the workers have a lower cost of living.

Businessman with a briefcase
Businessman with a briefcase

There are two common types of telecom BPO arrangements: complete and partial. A complete BPO handles all the information for the company, decides when and who to call, maintains internal contact listings and typically bills the parent company a fixed lump sum every period. In these cases, the BPO has control over its activities and exists with very little outside involvement. Workers within the BPO may send messages back to the company, but there is very little contact otherwise.

A partial telecom BPO has less autonomy and works closely with the hiring firm. In this case, the BPO may use customer listings from the parent company, or possibly only answer calls rather than making them. In addition, these companies will typically bill based on the actual activities performed, allowing for variation from month to month. This form of BPO is more common with smaller businesses while large businesses often use a complete BPO.

The main reason to use a telecom BPO is to save money. By reducing labor and workspace costs, the company can maximize its profits. The BPO already possesses the necessary manpower and workspace, often using placement and design that is beneficial to its operation, such as being in a low-cost or densely populated area. Since the BPO works for several companies and doesn’t need to support other departments, the cost billed back to the parent company is generally significantly less than if the telecom operation were in-house.

You might also Like

Discuss this Article

Post your comments
Forgot password?
    • Businessman with a briefcase
      Businessman with a briefcase