Wednesday, April 22, 2009

Business Process Outsourcing (BPO) KPI components

In a business process outsourcing (BPO) company, the main KPI are as follows: quality, customer satisfaction, and average handle time (AHT). There might be BPO company components other than the three mentioned, but generally, these three are the main BPO company components. Outsourcing company often have clients who demand a certain target to be meet. This target is a set of values correspond for the quality, customer satisfaction rating, and average handling time of each call that will be handled by the BPO company company on its client's behalf. The tasks are referring here are the ones made by the client's customers which the BPO Company are taking.

The balance among the three main BPO company components of the KPI is not easy to achieve. For example, a call center aiming to increase its customer satisfaction scores of their tasks would significantly drop their average handle time scores. This is because if they are up to please customers, it would entail having to stay longer on each task to make sure all the customer's issues are resolved, and that they are done in the most courteous way possible. Other than the AHT, quality scores can also reduce because customers might have requests that are granted by the representatives they are talking to. And these requests could be directly against the quality guidelines set for each task.

Going the other way, if a BPO company is aiming to improve its poor performance in terms of average handle time scores and starts working on it, customer satisfaction score is automatically threatened to decrease. The BPO company quality scores will be affected as well since hurrying a call will mean missing key points that need to be mentioned in a task - the very criteria where a quality score is gauged.

Having said so, you are now aware why there is difficulty in balancing the three BPO company components because increasing one KPI component would affect the other one. It would not have to be a problem if the effects are positive, but unfortunately, things do not always goes this way. A solution here is to maintain an average score for each KPI component. It will be more controllable to have all the scores meet at the middle and avoid having low scores in some components. Studying the trending of the BPO company KPI also helps. It gives the company an idea where to set the scores that are most achievable and productive.

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