Learn something new every day
More Info... by email
A business process outsourcing (BPO) franchise is an outsource service provider that relies on another outsource provider for business structure and operational procedures in exchange for a fee. There are certain BPO service providers that have packaged their set-up, business operations, and service delivery into a replicable system that can be implemented wholesale by others. Many are willing to pay for the ease of knowing exactly how to start and run a business to a certain degree of excellence.
Successful outsourcing relies on a third party provider convincing a company that it can manage one of its business processes more efficiently and at a lower cost than the company can in-house. Implicit in this pitch is the guarantee that the outside provider can deliver the service flawlessly as a seamless stand-in for the company. Hence, the system for delivering the outsourced business process is the service provider's product. A prospective business owner might want to jump into the BPO industry but not have the experience to design and test a system that avoids the type of new business trial and error that would kill the reputation of a BPO company.
A prospective business owner that wants to start an offshore BPO has the added difficulty of figuring out how to set-up the service in a foreign country. Fortunately, there are many BPO providers that have perfected a system for delivering an excellent service and have cracked the set-up in foreign markets. These providers package their systems and offer it to aspiring service providers as a BPO franchise. In exchange for branding, systems design, and support, the franchisee typically pays a base fee plus a percentage of sales.
For example, call centers are a popular BPO franchise. There has traditionally been more demand for outsourcing phone-based customer service than any one service provider could deliver. Enterprising companies package their systems and licensed their reputation as a brand to people who want to get into the business. The franchising arrangement takes the experiential component out of the project and allows a person with no functional experience to pay for an expert blueprint that he simply has to follow.
The BPO franchise can be a particularly effective way for a provider to enter the outsourcing industry and for the industry to expand. One of the key elements of success for a BPO service provider is the ability to attract clients. The use of an established operational system gives the new provider an air of professionalism and excellence that can increase a client's confidence. Some new providers have business relationships that can be turned into successful outsourcing if the provider could get a system up and running quickly. The BPO franchise fills a need in both instances, decreasing barriers to entry and infusing the industry with new blood.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!