Week 7 Tle 3RD Quarter
Week 7 Tle 3RD Quarter
Outsourcing- is defined as the practice of having certain job functions done outside a
company instead of having an in-house department or employee handle them.
Types of Outsourcing
1. Onshore Outsourcing -this occurs when a company purchases materials or services from
another company within the same country.
2. Nearshore Outsourcing- it involves purchasing of materials and services from the
neighboring countries.
3. Offshore Outsourcing- This involves a company purchasing services or materials from a
company located in a distant country.
Activity: Direction: you are an outsourcing advocate who wish to create an online campaign to
attract foreign investors in the country, create video of yourself presenting a short
persuasive speech (2 minutes at most), that will convince foreigner companies to outsource in
the Philippines. You may take at data from various source but remember to cite them properly.
You will be graded based on the rubric below. (Do Not Copy the Rubric)
1. Manufacturing Outsourcing (MO). This refers to the use of production facilities of another
company instead of using production facilities within one’s own company or investing in
manufacturing equipment. Examples are famous American shoe companies that purchase the
services of factories in Vietnam.
2. Information Technology Outsourcing (ITO). ITO refers to purchasing the services of another
firm to build or maintain the IT architecture of one’s own company. This includes app
development, web design, computer networks maintenance, IT security, etc.
3. Knowledge Process Outsourcing (KPO). This type of outsourcing involves processes that demand
analytical, technical, and decision-making skills. Examples of KPO are data mining, and research
and development
4. Business Process Outsourcing (BPO). BPO probably offers the widest number of services. In
BPO, any business process is outsourced by one company to another company. Examples of
these processes are finance, payroll, sales, technical support, and customer service.
Business Process Outsourcing (BPO) is the practice of hiring a company to handle business
activities for the other company as a third party. In this method of outsourcing, the third
party gets a contract to perform specific and specialized functions on behalf of the hiring
company.
BPO Terms
Client -refers to a company that decides whether to have an external company to perform
one or more of its business processes.
Customers -are the individuals or organizations that purchase from the company through
information technology (IT) assisted devices like computer, telephone, and mobile phones.
Agent or representative -is an employee who handles and solves incoming or outgoing customer
inquiries through various support channels such as voice, email, chat, social, asynchronous messaging,
in-app, and SMS text.
Types of BPO
1. Back Office Outsourcing- This consists of people, who have no direct involvement or interaction
with the customers, working behind the scenes.
2. Front Office Outsourcing- It is composed of individuals who interact with customers. Its focus is
sales, marketing, technical support and customer service.
To know more about BPO, you may watch the videos on the links below:
5. Data transcription- These services are used to interpret and transcribe oral dictation for such
clients as health professionals and legal offices.
6. Contact Centers- These provide both inbound and outbound voice and non-voice services for sales,
customer service, technical support, and other business processes. Agents handle multiple contact
types from phone to email to web chat.
Clients’ and Customers’ Needs- A contact center’s clients and customers both have
needs that should be met. Customers, most importantly, communicate with contact centers
due to several reasons. Below are some of the most common, if not all, needs of clients and
customers:
1. counseling-Telephone counseling is done by providing psychological services over the phone.
Professional therapists or counselors advise customers on certain matters, or perform
therapy for individuals or groups.
2. Directory -Customers need different information such as contact numbers or addresses
of popular restaurants, historical landmarks, or shopping malls
3. Booking- Customers need reservation or booking services for domestic and international
flights, hotels or resorts, and even rental cars.
4. Technical support -This customer need usually happens after the customer purchases a
product or service. Examples of this are connecting Bluetooth speakers, troubleshooting the
slow internet connection, and turning a phone’s mobile hotspot on.
5. Academic instruction -Customers, especially those in schools or universities, have needs
for academic instruction. Some colleges provide modules, courses and tutorials through phone
or email.
6. Travel advisories -Travel advisories determine precautions to take when traveling within
or outside the country. These help travelers assess risks, provide advice and advise citizens
what to do to be safe.
7. Sales -Customers often need new products and services to match their growing needs and
lifestyle.
8. Data gathering -Contact centers are aware that customers need security or information.
To do this, agents perform data gathering and account authentication by asking personal
questions that only the account holder knows.
Activity: Write your personal insight about the lesson using the prompts below:
I understand that _____________________________________________________
___________________________________________________________________
I realize that_________________________________________________________
___________________________________________________________________
I need to learn more about _______________________________________________
____________________________________________________________________
A. Inbound Services:
1. Financial Services -Clients outsource banking and finance services to contact centers. Examples
of customer needs addressed by agents are: inquiries regarding their bank account; deposit and
withdrawal of money; and insurance claims. Inquiries and complaints are dealt with immediately
without disrupting the company’s daily operations.
3. Client-Specific Products -Customers call for various reasons, and this is catered by different
client-specific contact centers. Customer Service Representatives (CSRs) provide various services
depending on the contact center’s client which may include product inquiries, reservations, and order
taking.
B. Outbound Services
1. Sales -Known as telemarketing, sales are conducted mostly through outbound calls to target
customers. A sales agent or telemarketer calls a customer to offer latest products to a prospective
customer. It is the agent’s job to persuade the customer to purchase the product or service offered.
Interactive Communication
Gathering Information after reassuring the customer, it is time to gather his/her personal
information for documentation purposes. Common information asked are as follow:
1. Customer’s Name -It is important to ask for the customer’s name first for the agent to address
him/her properly, and to avoid using “Ma’am” or “sir” during the call. Using the customer’s first name
also reflects a closer relationship between the company and its customers
2. Contact Number -Agents ask for the customer’s contact number as a precautionary measure in
case the call gets cut or dropped. It can also be used for returning the call when the agent needs to
contact the customer for further resolution or updates.
3. Email Address- A customer’s email address is needed so that the customer can receive
order/tracking details, company brochures and links, as well as CSAT surveys.
4. Address -Address is commonly asked when the agent processes an order, updates customer
information, or creates a new account.
Probing Skills
It is crucial for agents to identify the exact purpose of a customer; whether it is a
question, a complaint, or a request for transaction. There are three ways to do this:
1. Paraphrasing -This means rewording the customer’s statements, while retaining the meaning. It is
similar in length to the original message. Sample Prompt: “From what you said, I understand that...”
3. Clarifying –This is done to ask the customer about details that were not mentioned. When an agent
feels like he/she does not completely understand the situation, he/she must ask the customer
further, or it may end up in a mishandled call. Sample Prompt: “It would be great if you could tell me
a bit more about...”