You are on page 1of 3

Types of Industry

Call centers, just like other types of businesses, offer a variety of products and
services. The development in the business world pushes the industry to be more flexible,
thereby making the possibilities endless.

Call centers are also classified based on job-tasks and the location in which the
service is offered.

Frequently, BPO is referred to as Information Technology-Enabled Services


(ITES). This is because most business processes include some form of automation
and information technology devices such as computers that "enable" these
services to be performed. This encompasses careers in software development,
data entry, programming, and web development services.

BPO is distinct from Information Technology (IT) outsourcing, which focuses on


hiring a third-party company or service provider to do IT-related activities, such as
application management and application development, data center operations, or
testing and quality assurance. The Philippines is currently among the most cost
competitive destinations for IT-BPO services.

An offshoot of BPO is Knowledge Process Outsourcing (KPO) Considered by


some to be a subset of BPO, KPO includes those activities that require greater skill,
knowledge, education, and expertise to handle. This may include services in
financial analysis and legal services.

2.1 Types of BPO Industries

BPO is often divided into two main categories:

1. Back Office Outsourcing- This includes internal business functions such


as billing, purchasing, payroll of employees, and other similar tasks.
2. Front Office Outsourcing – This includes customer-related services such
as marketing or technical support.
Figure 8. Call Center in the Philippines

Based on the location of hiring and contracting, BPO may be categorized


as:
1. Offshore Outsourcing – is outsourcing contracted outside a company's
home country. This is done when high-volume, low-complexity tasks are
processed in a country with a significantly lower cost base than where
the service has become more sophisticated. For example, the UK:
traditionally India, but more recently China, the Philippines, Malaysia
and some South American countries.

(e.g., Numerous UK-based BPO companies such as Vertex and Capita


Group are now providing offshored services to their clients through their
operations in the Philippines.)

2. Nearshore Outsourcing - BPO that is contracted to a company's


neighboring country. The cost base of these countries is still lower, but
geographical proximity and cultural similarities can create an easier
working relationship. A good relationship, cultural similarities and
absence of communication gap can result in a more complex work being
transferred easily. For Western Europe, this is to Eastern Europe. For
the United States this is to Canada and Mexico.
(e.g., Tony Lee, an information management supplier based in the US
near-shored the development of its computerized purchasing system
to Advance Programs, a commercial systems solution provider in
Canada.)

3. Onshore - is an entirely different scheme. It is the practice of


obtaining business-critical, high-level services from someone
not employed by the company, but within the same country.
Onshore services are unique for each company.

(e.g., When Burger King Corporation, a US-based chain of restaurants, lost its laboratories in
the havoc created by Hurricane Andrew in1992, the company was forced to outsource its quality
assurance functions to other companies in the US. Burger King still outsources its quality
assurance functions onshore even after rebuilding its laboratories because it allows the
company to make productive use of its internal

REFERENCE:
https://www.scribd.com/doc/267763691/TLE-ICT-Contact-Center-Services-Grade-10-LM

You might also like