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​​Is Business Process Outsourcing (BPO) Your Ticket to Better Customer Experience?

Updated December 17, 2024

Ryan Gould

by Ryan Gould, Vice President of Strategy & Marketing Services, Elevation Marketing at

BPO continues to be an important asset to business strategy, but how does it impact customer experience?

Customer experience (CX) is a top priority for many businesses.

In fact, according to a study by Amplifi, 86% of consumers would leave a brand after as few as two poor experiences. This just goes to show that CX can truly make —or break— your business. 

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But offering a memorable customer experience is easier said than done. To stand out from the crowd and keep customers coming back, you need to be willing to think outside the box. One of the best ways to do this is through Business Process Outsourcing (BPO).

Interested in learning more about how to hire a BPO agency? Contact an expert today. 

What is Business Process Outsourcing (BPO)?

BPO is the process of outsourcing business functions to a third-party provider. BPO helps companies reduce costs by outsourcing “non-core functions” and responsibilities to expert contract workers. BPO covers activities like payroll processing, accounting, finance, call center operations, human resource management, and IT services. 

But, what does outsourcing have to do with customer experience? Well… A lot actually!

Have you ever been on hold with a customer support team for hours on end? It’s not a fun experience for anyone involved. And that one experience probably left you hesitant and wondering if you’ll ever do business with them again. By having more support team members on standby, your simple question wouldn’t have needed to take hours to get a solution. Your question could have been answered in just a few minutes' time with the help of outsourcing experts. 

Does BPO Really Improve CX?

Yes! No matter the size of your company, BPO can improve customer experience and efficiency by leaning on other experts in the field to help you get there. As a bonus, outsourcing can also be a cost-effective method to make sure your customers are well attended to. 

Although many types of tasks can be outsourced, we will mostly be talking about outsourced customer support specialists since they deal directly with your customers.  

So, what are the specific reasons why you should care about BPO? Well, you’re about to find out.

Why You Should Care About BPO

Outsourcing has grown in popularity over the last few years as companies have recognized its long-term benefits. In fact, the global business process outsourcing market was valued at 245.9 billion in 2021.

North American BPO
Image Source

As you can see in the image above, there is a huge market for outsourcing and this number has only been forecasted to continue to grow as time passes.

4 Benefits of Outsourcing Your Business Processes

4 Benefits of Outsourcing Your Business Processes

Here are the specific reasons why you should care about outsourcing your customer support team in 2022:

  1. Reduces Costs
  2. Allows You to Focus on the Core of Your Business
  3. Provides Quality Assistance
  4. Flexibility

 

1. Reduces Costs

When you outsource your customer support tasks to an experienced partner, you can give your customers excellent customer service — at an affordable price point. With BPO, you will be able to save on costs associated with hiring internal employees for contact center operations. This means that you will have more money left over to put towards other necessary expenses within your business! 

 

2. Allows You to Focus on the Core of Your Business

Outsourcing also allows you to focus on the core of your business. Hiring additional customer support professionals will give you more time to grow your business in other value-added, meaningful ways.

 

3. Provides Quality Assistance

When outsourcing, you know you will receive quality assistance if you do the research first. 

The best BPO providers invest heavily in technology infrastructure so that they can meet strict quality standards while providing 24/7/365 customer support. (This means that your customers will get the help they need — when they need it.)

 

4. Flexibility

During the holidays, there can oftentimes be an influx of return calls or delayed package questions. To meet the demand, your in-house team may not be able to handle that many calls on their own. By getting additional help from a third-party provider, you can get additional customer support — even in “high-volume season”. 

Examples of Companies Using BPO to Enhance the Customer Experience

Have we started to spike your interest? If you're considering BPO, but you’re not sure if it’s the right move for your business (yet), just know that many other companies are already reaping the benefits!

Here are some examples of some popular brands that already use outsourcing to enhance their customer experience initiatives:

 

Amazon 

Amazon

According to their website, Amazon (NASDAQ: AMZN) outsources employees in over 40 countries globally. This allows the company to provide timely and accurate customer support while giving their employees the flexibility to work from home. It’s a win-win for everyone involved.

 

Google

Google

Search engine platform Google (NASDAQ: GOOGL), has been said to have more outsourced employees than in-house employees for multiple reasons. A few of these reasons include that by outsourcing talent, they are able to lean on a global talent pool from various language backgrounds. Secondly, Google can continue to give its users support around the clock. This means if an agency has a question about their Google Ad Campaign at 2 AM, a support team member will be able to answer their question regardless of the time of day. 

 

Target

Target

Retail giant Target (NYSE: TGT) outsources their customer support specialists overseas in countries like the Philippines and India. Both of these countries are known to be able to handle an influx of customer calls to ensure that every question or concern from the end customer can be answered in a timely manner. If a customer has a question about a return, a live chat specialist can assist them. If a customer is accidentally double charged, an customer service rep can talk to them over the phone to troubleshoot the issue their facing. 

Don’t Let Customer Experience Fall by the Wayside

All in all, CX should be the heartbeat of your business. BPO and CX can be a powerful combination that will take your company's customer service to new heights. Whether you're looking to streamline your call center operations or ensure continuity of service during busy times of the year, outsourcing is the way to go for success.
 

Additional Resources: 

 

About the Author

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Ryan Gould Vice President of Strategy & Marketing Services, Elevation Marketing
From legacy Fortune 100 institutions to inventive start-ups, Ryan brings extensive experience with a wide range of B2B clients. He skillfully architects and manages the delivery of integrated marketing programs, and believes strongly in strategy, not just tactics, that effectively align sales and marketing teams within organizations.
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