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Service Level

Definition

What is the Call Center Service Level?

Service level is the percentage of answered calls within a target time threshold. It can be calculated over any time frame – 30 minutes, an hour, one day, or one week – and for any agent, department, agency, or organization as a whole.

Service level tells you if the company has enough resources to meet the client’s demands. It also shows whether consumers are easily linked to the team member and if their issues are handled on time. If your quality of support is missing, it might be time to introduce new customer service tools or add more staff.

The service level should be compatible with the technologies or market goals of the project. The mismatch can harm contract pricing, consistency of service delivery, and customer loyalty.

Importance of service level

Service level is one of the most useful Key Performance Indicators (KPIs) in a call center. Management can set a service level target, which is the total number of callers waiting in the queue to be answered within a given time.

What is the Call Center Service Level

Service level tests the responsiveness of the firm to its clients as it implements its staffing strategies. Service level is linked to the level of customer support and the inbound call center efficiency.

Outsourcing FAQ

What is What is business process outsourcing??

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following:

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes, which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

The definition of business process outsourcing (BPO)

In business process outsourcing, a company delegates its services to a service provider. It can be a local firm, nearshore, or offshore company.

Upon reaching an agreement, the service provider will then set up a team for their client. They will shoulder the costs and resources needed, including:

Office space Workplaces Connection Cloud storage IT infrastructure

The providers are responsible for tracking the staff's performance and progress. Meanwhile, the clients are responsible for providing the tasks, processes, and KPIs needed for their operation.

In some instances, they are also allowed to incorporate their culture and values into their team and absorb them as a part of their company.

What are the benefits of business process outsourcing (BPO)?

There are many benefits to outsourcing, as well as some downsides and risks.

Outsourcing powerhouses like the Philippines and India produce high-quality talent at a lower rate due to their low operational costs and full government support.

Since outsourcing companies hire and produce experts in the field, clients can ensure better results in their operations – whether in customer service, accounting, or marketing. Their staff are trained to ensure that their clients achieve the outcome they expect.

Companies are able to scale their staff depending on the demand and availability of their tasks. This also helps them improve their operations by letting their service providers contribute to streamlining their processes.

Outsourcing poses more growth opportunities for businesses of all shapes and sizes. While there are still drawbacks to this practice, it is safe to say that its advantages outweigh its risks.

To explain it further, below we have outlined the top benefits of outsourcing business processes:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in offshore countries.

In the Philippines, for instance, companies can hire offshore staff with a US$500/month salary for starting positions. A team of 10 employees would only cost them as much as a single worker in the US with an equal position.

Global market

Small and medium-sized businesses find it most difficult to hire local employees that suit their roles.

The widened skill gap in developed countries, paired with economic crises, affects their capacity to expand their teams as needed.

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

Outsourcing is a great way to establish a remote workforce, especially for companies looking to implement this setup for the first time.

BPO reduces internal local compliance obligations, including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. Burnout within entrepreneurs and teams is more common than everyone thinks, especially with everyone filling up the tasks beyond their skill sets.

A BPO company enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is because most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The BPO industry is vast, generating over $200bn annually and employing millions of people worldwide.

As stated in the Market Analysis Report, the global business process outsourcing market reached over USD 245.9 billion in 2021. Thus, it is foreseen that we will acquire a compound annual growth rate (CAGR) of 9.1% this year from 2022 to 2030.

The proliferation of the global BPO sector is utterly driven by several key factors that organizations take full advantage of:

Improved efficiency and agility Focus on core competencies Decreased operational costs Adapt to the ever-changing business dynamics

In general, when we speak of outsourcing, it always entails contracting out parts of business processes to an external provider, either domestically or offshore.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team.

Here we have listed some of the examples of business process outsourcing:

Big enterprise

Corporate outsourcing has been around since the industry started. The new breed of large companies are still taking advantage of its benefits and using it to expand their offerings further.

Some of the known enterprises that outsource their services today include the following:

Google. Google has been ramping up its outsourcing efforts since 2016 by delegating development and customer support. Facebook. Meta, particularly Facebook, outsources content moderation to the Philippines as a way to filter toxic content and keep the platform safe for its users. Wells Fargo. Wells Fargo has been outsourcing their operations to the Philippines since 2011. It has recently pulled out its functions in the country, though the company retained its BPO center in Manila. Medium-size businesses

A medium business with 50-500 staff might outsource the labor-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

The recent Clutch survey stated that around 90% of small businesses plan to outsource their services in 2022 due to the efficiency and flexibility that companies get.

It is common for small business owners to have a Virtual Assistant (VA) working for them full-time and remotely from the Philippines.

Aside from this, organizations can delegate other services such as development, IT, and digital marketing.

What are the different types of BPO?

Outsourcing can be executed in different forms, depending on the outsourcer's needs. The truth is that not everyone is fully aware and has an in-depth grasp of the BPO sector.

For most people, BPO can simply mean farming out business processes to third parties located in another country, but this is just one type of BPO.

As for businesses, it is always vital to be familiar with the various classifications and functions of BPOs. This way, they are able to opt for a business process outsourcing provider that is best suited for their type of requirements and industry.

More importantly, outsourcing is not a one size fits all strategic approach, this is why it is not enough just know what outsourcing is and how it works.

There are several types of BPOs that businesses can choose from. The type of business process outsourcing can be characterized by its specialization, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector.

However, their services extend across all industries. The majority of BPOs are generalists in that they offer a full range of professional services.

Meanwhile, some specialize in certain verticals, such as the following:

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work, including research and development, innovation, and creativity.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost of living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Offshore

Offshore outsourcing refers to the process of delegating a part of operations or a department to an offshore country.

To maximize profitability and efficiency, companies choose to outsource to a different region or timezone. India, the Philippines, and South Africa are some of the popular countries known for offshore outsourcing services.

Onshore

Onshore outsourcing or onshoring, meanwhile, is preferred by firms looking to delegate their services within their country.

Onshoring does not offer as much savings as offshoring or nearshoring. However, clients prefer this as a way to maintain their branding and satisfy their local markets.

Nearshore

Lastly, nearshore outsourcing is preferred by companies that do not want the hassles of time zones and cultural differences in offshoring but still want to get the best out of their delegated services.

Through nearshoring, businesses can collaborate with their teams located in nearby countries. This gives them the opportunity to maintain their local compliance and save on costs since most nearshore locations are cheaper than their onshore counterparts.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment, and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

The future of BPO outsourcing

We have gathered five expert opinions from renowned global business leaders. They shared how they perceive the future of outsourcing will be, including the trends that will prevail in the coming years.

Meg Marrs, Safer Senior Care

Meg Marrs of Safer Senior Care strongly believes that entrepreneurs and business leaders should outsource their essential tasks.

“Outsourcing certain roles has freed up my time to focus more on big picture strategy, rather than being completely meshed in the day-to-day tasks.” 

One thing is certain, outsourcing to support businesses growth is something that will never go out of trend.

Sean Nguyen, Internet Advisor

As for Sean Nguyen, Director of the Internet Advisor, outsourcing to streamline processes is another essential trend that businesses will continue to apply.

He quotes, “Outsourcing can be really helpful, even at the most incipient levels, because it allows you to streamline operations. If it's not essential to have it taken care of in-house, there is no reason to do so.”

Elandas Miller, Kicking It Sports

Elandas Miller of Kicking It Sports, has been outsourcing back office and creatives since 2017. “I like to think of outsourcing as a tool to help me get to my goals faster and more efficient without burning myself out.” 

Outsourcing to support both organizations' short and long-term goals is another trend that companies will practice in the foreseeable future.

Tom Baker, Tom's Projects

The founder of Tom's Projects, Tom Baker, offshores his entire product and development. “Outsourcing means that we can scale the team up and down when need be.” Scaling the workforce through outsourcing is, yet again, among the trends that will remain prevalent.

Bobby Reid, Capitol Tech Solutions

For Bobby Reid, founder of Capitol Tech Solutions “Outsourcing has helped our business by being able to provide expertise for a service quickly. While these contracts are outsourced, they are incorporated into our company culture when possible, since they are working full time with our firm.” 

Lastly, outsourcing to fill in talent gaps and expertise is one of the key trends that more and more organizations will utilize in the coming years.

The future of work is digital, says Outsource Accelerator Founder and CEO Derek Gallimore.

The world has moved on from manufacturing and creating products to providing services. And as we enter the post-pandemic world, he says we are “moving towards a single global economy.”

The concept of work dramatically changed with COVID-19, and things have changed for good. These changes made us realize that technology is available for remote and digital work interfaces.

Once showed an unsteady growth, the global outsourcing market spiked to US$245.9 billion in 2021. The sudden surge of demand brought by the pandemic, along with the worsened talent shortage, has led companies to increase their outsourcing efforts.

In a podcast episode, Derek explained, “There are eight billion people on the planet, and they are now all increasingly connected digitally.

There are [also] four billion people who are highly qualified professionals sitting around the world, and they're not just virtual assistants and basic roles. You can find [people with] PhDs, architects, accountants, or whatever you need for your business.”

To conclude, Derek believes that the global economy and a globally-sourced workforce are the future, and it is not going away.

Leaders all over the world also know that outsourcing is here to stay. Former US President Barack Obama says that jobs that have been outsourced cannot be brought back to the country.

As a result, it is better to retrain and re-skill the workers who have lost their jobs on account of outsourcing.

Obama further suggests that community colleges could provide the necessary skills for a person to be gainfully re-employed in the workforce. He adds that this is a necessity that Americans look forward to in the future.

Looking back doesn't always make people feel good, so it is essential that they retrain for the ‘jobs of the future.'

How to choose a BPO provider

Over the years, outsourcing has been the go-to strategic practice for businesses looking to scale their operations effectively.

But just like any other venture, companies should be wary of the possible drawbacks of outsourcing before selecting bpo providers.

Risks of BPO outsourcing 

Despite its advantages, business process outsourcing done incorrectly leads to outsourcing risks that affect a company in one way or another.

Hidden charges

Some BPO vendors do not totally disclose the total fees they charge and their terms. Clients could experience “bill shock” upon seeing the hidden charges they get.

Compliance issues

Compliance is crucial, especially in handling financial information and dealing with intellectual property. BPOs that violate compliances could risk their clients' reputations and branding.

Problems with security

Lastly, BPO vendors with loose security compliance could risk getting their client's data exposed and used for malicious purposes.

Choosing the right business process outsourcing vendor

The key to successful outsourcing lies in choosing a suitable bpo company and working with them along the way. Here are some of the considerations to look for in a BPO vendor:

Expertise

A BPO vendor's expertise can be shown primarily through their approach to their clients. Even without getting too technical, they can comfortably discuss the initial solutions to provide according to their client's requirements.

Compliances

Especially when delegating functions involving sensitive information, a bpo company should be up-to-date and compliant with regulations relevant to their services.

Check for ISO, HIPAA, and PCI certifications as much as possible.

Employee satisfaction

A good BPO company also places employee satisfaction as its priority. Check on employee reviews online to see how the staff feels about their company.

Technology

The tools and equipment a BPO vendor uses largely affect their performance in general. Check to see if they use updated technology at work and how they train their employees to use them.

Top BPO companies in the world's top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide the utmost services to their Western and local clients.

Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate.

However, finding a suitable BPO company can be a daunting task to be done on their own.

It's a good thing advisory services such as Outsource Accelerator are there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 400+ podcast episodes, and a comprehensive directory with 3,000+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about and engage with business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

What is a Service Level Agreement (SLA)?

What is a service level agreement (SLA)?

A service level agreement (SLA) is a formal or informal document that outlines the expectations between a service provider and an end-user.

Originating from internet service providers, it has become a standard tool, not only in business process outsourcing but even within corporate structures.

The key benefit of an SLA is that it provides clear, measurable outcomes that are subject to periodic review by designated representatives.

It ensures that a service provider's performance is at par with what is agreed upon by all parties involved.

Most service providers usually outline the service level agreement for their clients. However, the latter can also provide their set agreement when needed.

Characteristics of a good service level agreement

A good service level agreement has the following characteristics:

Services to be provided by the vendor Service expectations for reliability, availability, and responsiveness Clear performance metrics for measuring and monitoring service levels A standard reporting procedure (e.g., weekly status reports) A timeframe for issue resolution Penalties for failure to meet expectations or “service credits” A timeframe for a periodic review of the service and the service level agreement

Service level agreement vs. Key performance indicators

A service level agreement (SLA) details in a paper how the relationship between the service provider and their client will go through.

Key performance indicators (KPIs), meanwhile, gauge how a company performs in line with its goals and objectives.

At the same time, these are metrics used to measure a team's performance against the standards set in the SLA.

Usually, the SLA may indicate specific KPIs that both parties involved may use to monitor service levels.

Service level agreement call center

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO).

We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about and engage with outsourcing and have effective service-level agreements with companies or call centers.

SLA in BPO

An SLA is a measuring instrument that determines the BPO company's baseline performance levels.

It includes a description of the services to be delivered and the criteria by which the services will be measured.

In addition, the hiring and BPO company's roles and obligations, the remedies and service credits, and instructions in the case that the agreed-upon SLA has to be amended or adjusted.

Both the service provider and the clients are responsible for making sure that the service levels indicated are met by their teams.

SLA call center

The SLA call center is a set of internally defined criteria that management uses to make decisions. Decisions may be made and implemented based on these guiding factors to increase efficiency, save money, and improve customer satisfaction.

Each call center must determine its own SLAs and how to meet them best. The call center service level is the rate at which the goals are accomplished.

It might be difficult to determine the measurements. Each company must be able to identify abandoned calls, calculate realistic time intervals for each phase of the customer experience, and track everything.

​​What are the types of service level agreements?

Here are the three main types of service level management:

Customer service level agreement

A customer service level agreement is an agreement between a vendor and a particular customer to provide a certain level of service availability. It is also known as an external service agreement.

The vendor can outline a generalized service agreement for all customers (service-based SLA) or a tailored agreement for each client (customer-based SLA) depending on their offering and what certain customers will get.

Internal service level agreement

An internal SLA solely applies to corporate employees and does not apply to consumers.

While a company may have an SLA in place for each of its customers, it can also have a separate SLA for its marketing and sales departments.

Aside from this, an internal SLA can also apply to other roles in a company, including their customer service team.

Multilevel service level agreement

Multilevel service level agreements come in various shapes and sizes. Customers or other internal departments of a company can benefit from this type of agreement.

If there is more than one service provider and one end-user, Multilevel SLA is used to define the type of service expected from each party.

The importance of service level agreements in the customer service industry

In the customer service sector, a service level agreement (SLA) acts as a framework for the service the provider allows us to develop and safeguard the company's assets and reputation, which are crucial.

Three reasons why your company should have a service level agreement in place with its technical customer support services provided are listed below.

Helps establish measurable guidelines

A Service Level Agreement is essential for ensuring that both parties involved are on the same page when it comes to standards and service.

You and your provider can figure out your needs and expectations and guarantee you receive what you invest for by drafting a service level agreement.

Setting clear and measurable standards is essential as it manages expectations and ensures that your technical support services provider is held accountable.

Provides protection for uncertainty

If your service provider fails to fulfill its responsibilities, it can have a significant impact on your company's reputation and results.

If performance indicators are not fulfilled, you should include a backup plan in your Service Level Agreement.

You might implement monetary penalties that could help your company if it suffers losses. This will help you in protecting your company in times of uncertainty.

Helps manage customer expectations

Those seeking the services of a technical support service provider can have a sense of security with a contract in the form of a Service Level Agreement.

It holds your service provider accountable and establishes the level of service you may demand.

If agreed-upon requirements aren't met, you can reduce some of the consequences by requiring your supplier to make up the difference.

SLAs are also preferred by service providers since they help retain consumers.

Excellent customer service supported by great SLAs is one method for service providers to distinguish from their competitors.

What is Business to Business (B2B) Call Center?

What is Business to Business in Call Center?

A business-to-business or B2B call center helps secure existing customer connections with frequent check-ins and service inquiries. If any difficulties occur with the new buyer, they will be referred to the sales team of the company for timely handling. In this way, a communications partner serves as a buffer for a company.

The B2B call center can also provide an initial point of contact for all the customers. This strategy will improve their level of customer service and receive good impressions from the clients. 

Benefits of business to business in call centers

Customer service and loyalty are factors that any company strives to achieve the highest degree. It is essential that programs are built to offer reliable support, and that they often cover a variety of ways for reaching a broader client base.

Here are some of the advantages of business-to-business in call centers:

Create an improved campaign plan to meet goal requirements Supply future clients with a favorable experience Use the latest technologies without it having to pay the extra costs. Successfully transforming leads to business potential

Call center companies catering for B2B communications require powerful software to provide smooth contact between agents and clients.

What is Quarterly Business Review?

What is a Quarterly Business Review?

A Quarterly Business Review (QBR) is basically a client meeting on a quarterly basis where you discuss their business, and find ways on how to support them. It is also known as a Business Review or Executive Business Review.

A QBR is a great chance for you to talk about your client’s business in the big picture for you to gain a deeper understanding of their business, goals, and long-term plans. It gives you an opportunity to step up and be a “business advisor,” instead of being a vendor.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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