While some business organizations may refer to BPO and call center interchangeably, they are not the same. A call center is primarily concerned with handling customer relations and call center services, most often in the form of calls, while business process outsourcing (BPO) is a broader term, which may include customer relations, back-office operations, financial operations, data processing, HR support, and so on, which are outsourced to a third party. In other words, a call center is just one aspect of business process outsourcing.
It is important to understand this difference because, depending on what a business organization actually requires, the right type of business outsourcing strategy has to be implemented. While some business organizations may require assistance with handling calls, others may require end-to-end business operations to be outsourced to a third party, which may include various departments. The current article on the above-given URL is discussing the topic on a basic level, but it is quite mixed, repetitive, and does not clearly convey the difference.
BPO vs Call Center: Quick Answer
- BPO refers to an organization outsourcing a business process or function to a third-party provider
- A call center refers to a group or service whose main focus is answering customer calls
- Call centers can be part of BPO, but not all BPO services are call centers
- BPO includes both front-office and back-office operations, while call centers are mainly customer contact operations
- Call centers are appropriate when your main needs are customer calls and phone support
- BPO is appropriate when your needs are more than customer calls
What Is BPO?
Business process outsourcing is defined as the practice in which an organization outsources one or more specific business processes to an external service provider. Business processes in this case may involve customer services, technical support services, data entry services, financial services, claims processing services, human resource services, and so on.
Business process outsourcing can be broadly categorized into two types:
Front-office BPO
Front-office BPO services involve customer services, sales support services, help desk services, appointment setting services, and so on.
Back-office BPO
Back-office BPO services involve payroll services, billing support services, data services, order processing services, human resource services, accounting services, and so on.
What Is a Call Center?
A call center is a business unit or outsourced service that processes a high volume of customer phone calls. A call center can be used for handling incoming calls, which include customer support, complaints, booking, and account-related queries, or outgoing calls, which include sales, follow-ups, reminders, and surveys. Contemporary call centers can also refer to chat, email, or message-based customer service, but their fundamental definition remains centered on voice-based customer interactions.
A call center is a more limited concept compared to BPO. The primary focus of a call center is on communication efficiency, response handling, service delivery, and customer issue resolution.
Main Difference Between BPO and Call Center Services
1) Scope of work
The most striking difference is in scope. BPO refers to a broad range of outsourced business processes. In contrast, a call center service is primarily concerned with customer interaction, particularly with calls. If a service provider handles finance operations, data workflow, support for new customers, and customer service in one contract, then it is BPO. However, if they are primarily answering and making calls, then it is a call center service.
2) Type of tasks
Call centers are primarily concerned with customer interaction. BPO can involve customer interaction, but can also involve other tasks that are not customer-facing.
3) Business objective
Call centers are usually hired to augment service availability, prevent missed calls, manage service demands, or to assist in campaigns. BPO is usually hired when a company needs to outsource part of its operations in a strategic manner.
4) Team structure
Call centers are typically trained in scripts, call quality, escalation skills, and customer service metrics. BPO teams can vary in structure depending on the contract and can include process specialists, data operators, billing staff, analysts, QA staff, workflow managers, and customer service teams.
5) Performance measurement
Call centers are typically measured in call-related metrics such as average handling times, first-call resolutions, call abandonment rates, and customer satisfaction. BPO service levels can vary depending on accuracy, turnaround times, and process metrics.
When to Choose a Call Center
The call center is more appropriate if your need is more communication-intensive and customer-focused.
Best For:
- Inbound Customer Service
- Outbound Sales & Follow-up Calls
- Appointment Scheduling
- Help Desk & Queries
- Overflow Service for Peak Periods
If your pressure points are more related to phone calls, missed calls, response times, and service availability, a call center is likely sufficient.
When to Choose BPO
- Customer service with back-office support
- Billing and payments
- Data input and document management
- Human resources or administration
- Long-term process outsourcing across business areas
Pros and Cons
BPO Pros
- Broader support for operations
- Better for process standardization
- Has the potential to be more scalable within departments
- Can significantly reduce internal workload
BPO Cons
- More complicated to set up
- Requires more documentation of processes
- Can be overkill if all that’s needed is phone support
Call Center Pros
- Narrow solution for customer calls
- Easier to deploy for support and sales teams
- Good solution for high-volume call center operations or outbound communication
Call Center Cons
- Limited solution compared to BPO
- Doesn’t address deeper operational problems
- May require additional vendors for back-office needs
Which One Should a Business Use?
The answer to this depends on the nature of the business challenge.
A call center is appropriate when the challenge is mainly calls from customers, service availability, lead follow-up, or support via phone calls. BPO is appropriate when the challenge involves more than just calls from customers and includes other operations in the business that can be outsourced. If a business needs to handle answering calls from customers only, then it does not necessarily need BPO. If a business needs to alleviate pressure in support, billing, and administration, then it does.
Frequently asked questions (help)
Is a call center the same as BPO?
No. A call center is a specific service that mainly involves answering customer calls, while BPO involves other services as well.
Can a call center be part of BPO?
Yes. This is because call center services are part of BPO services, especially if the call center services are combined with other services, such as back office services.
Is a BPO or a call center better for small businesses?
While call center services are best for small businesses that do not need other support services, BPO services are best for businesses that need support services other than call center services.
Is BPO non-voice?
Yes. BPO services involve non-voice services such as data processing, billing, human resource services, and other back-office services.
