Guide to getting Business Process Outsourcing (BPO) deals

 Heya, Hope you liked reading my previous post on Sales Suspecting. In this article, we shall discuss a detailed guide to understand the Business Process Outsourcing business and how to win BPO deals from the organizations willing to outsource.

Let us get started...

What are BPO deals?

BPO stands for Business Process Outsourcing. It refers to the process of contracting some of the standard & repeatable business processes of the organization to a 3rd party vendor or so called BPO firms or consultant.

BPO deals are usually categorized in 2 major categories:
  1. VOICE PROCESS – This majorly deals with handling calls for the client which might be related to customer service, outbound sales calls, or any helpdesk based Call center process.
  2. NON-VOICE PROCESS – This business process deals with all types of backend paper work, documentations or analysis, related works. 


Industries which provides BPO Contracts:

Almost all major industries provides outsource their business processes. Some of the notable ones are:
  1. Manufacturing
  2. Education
  3. Healthcare
  4. Banking, Financial services and Insurance (BFSI)
  5. Media & Entertainment
  6. Real Estate
  7. Retail and e-Commerce
  8. Telecom
  9. Energy & Utilities
  10. Automobile
  11. Transportation & Logistics

Major types of BPO contracts given:

Here are some of the types of Business Process work usually being outsourced to BPO firms:
  1. Call Center Services
  2. Data Entry Services
  3. Engineering Design Services
  4. Finance, Accounting & Taxation processes
  5. Healthcare BPO Services
  6. Insurance BPO Services
  7. Market Research & Analysis processes
  8. Mortgage BPO services
  9. Legal Process Outsourcing
  10. Photo & Video Editing services
  11. Transcription and Translation Services

What do companies look for while outsourcing BPO contracts?

Organizations which tend to award business process outsourcing contracts, tend to evaluate the BPO vendor firms on the following selection criteria (though this is not the only complete list, there can be few more parameters as well).

  1. Expertise: The Industry or domain expertise of the BPO firm
  2. Services Offered: The types of business process services the firm provides or has delivered in the past.
  3. Staff: The number of employees in the firm who can carry out their business process.
  4. Client base: The major clients for which the BPO firms cater to, It can provide a testament of the quality of the work the BPO firms deliver, but at times if you are catering to any competitor of the prospect organization without much data protection and privacy policies in place, then it shall backfire.
  5. Rates:  The price point at which you will deliver the process whether it is hourly rate or a fixed rate or transaction based rate based on number of tasks completed or processed.
  6. Financial Statements: This is assessed to find out the financial stability of the firm, since if the financials of the firm are weak then it presents a risk for an organization to hand over their critical process fearing what will happen if the BPO firm goes out of business suddenly.
  7. Data Security Frameworks: Since the BPO firm will have direct access to some of critical data of the Organization, they tend to evaluate the measures and policies the BPO firm has put in place to protect their data.

Why would an organization be interested in outsourcing BPO contracts?

  1. Cost Reduction: Hiring a big permanent workforce and office involves a huge Capital Expenditure. The organization can reduce that overhead cost by outsourcing the business processes.
  2. Quality of Deliverables: The work done by good professional BPO firms would be of better quality compared to it being delivered in-house. This is because the BPO firms are having relevant  experience working with multiple clients in the same domain with expert and experienced staff who can deliver more efficiently and accurately.
  3. To focus on core business: Outsourcing some of the non-core activities to a professional firm helps the organization to free up some of their resources so that they can focus on activities involving their core line of business.
  4. Scalability: When an organization want to scale up to new markets or businesses, situation will arrive where they need quick help of local experts who can help them scale faster. That’s where the BPO firms come as a savior.

How to get BPO deals from an organization?

  1. Go around prospecting from your lead list and reach out to the Organizations where you are comfortable with their processes.
  2. Request for their qualification criteria for providing BPO services.
  3. If you meet their criteria, talk to all key stakeholders or the owners of different business processes in multiple departments.
  4. Based on their Needs and your Strength mapping, try asking for a Pilot BPO project to one of the decision makers.
  5. Show some case study as a testament to your past project with another Client.
  6. Execute the task with high quality deliverables and go back to the Client stakeholder asking for more outsourcing assignments.
  7. Demonstrate the work done in Pilot project to key decision makers in other departments where you foresee opportunities for process outsourcing projects to win more deals.

What are the KPIs for BPO delivery?

BPO firms are evaluated on multiple Key Performance Indicators and metrics to assess their deliverables. The important ones are listed here. These are important for a BPO firm since the better are your KPIs, the better is your chance to keep winning newer opportunities from the existing Clients.
  1. Quality of Deliverables.
  2. Time Taken to deliver the project.
  3. Ability to accommodate project scope changes.


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4 Sales Qualification questions to ask every lead

In any organized B2B or B2C sales team, Sales Development Representatives (SDR) are assigned the task of generating new pipeline of opportunities by qualifying the leads from their database. But most of the time, SDRs are little unsure on what kind of questions should they ask in order to qualify their leads.

In this post, let me tell you 4 important things you should check while having the first conversation with them in order to check if they are qualified to be pursued further or not.

Remember that your screening or the so called Lead Qualification is critical to the operational output of your quota carrying Sales Executives, because they should work on only the valid leads so that it increases the chances of conversion at the end.

Being in SDR team, you should also measure your KPI by taking into consideration the final conversion of the leads which you qualified earlier. Never measure your metrics only with the mass numbers of leads you qualified if the Sales Executives are not able to convert them later, wasting your organization's productive time and energy.

When you get a Lead from a database, networks, conference or through inbound channels while a customer tried reaching you or subscribed to your newsletter, you should first log them into your CRM as a best practice. It will help you organize your sales effectively.

You may checkout Toolsoncloud CRM if you are looking for a Sales CRM.

Once you add your leads, start reaching out to them via their preferred medium may be Email or Call. It is preferable to have a telephonic discussion so that you understand their context in detail.

While you probe them further for qualifying, focus on the following 4 areas:

1. Fitment of Customer Pain point against your Offering.

In the qualification call, always understand the pain point of client first. Let them speak first about their challenges which they are trying to solve instead of going big bang with a pre-recorded & rehearsed Sales presentation of your product.

Once you understand their problem, try to assess from your own understanding whether your organization is equipped with solving the challenges of the prospect. If the answer to this is "Yes", then go ahead for the next question.



2. Customer Budget

Many a times, you would find that you can solve the customer's problem, but not within the low budget of the Client. To be frank & practical, When you have a lot of leads lined up, It is unproductive for a sales team to spend too much of time and resources to convert a deal where the Customer do not have the required budget to purchase your offerings. You shall simply lose the other potentially qualified leads with budget over the ones who do not have the required funding.

It is good to acquire new customers with some lower budget in the beginning if you are looking for more business from them in future and they do have that much of wallet to give the expected scale of business later.  But the decision of how much of sales executive time should be allocated on those deals, should be taken with the joint decision of your internal sales team leaders.

Do not be hesitant to ask the budget related questions to your Client. Go ahead and explicitly ask details regarding the budget they have planned or allocated for the deal or purchase. If the budget is not worth the effort, then move on or mark the lead on low priority.


3. Timeline for Purchase

Before you pass on a lead to your Sales Executive, he should be apprised on the expected timeline of closing that deal, so that he can align the meetings and follow-up accordingly.

You can ask your lead:

  • What are the processes or steps they need to do internally to complete the purchase?
  • What is lead time for each step of the process? 
  • What kind of challenges might be expected in some stages so that the executive can proactively coordinate to solve them and take it to logical closure.


4. Stakeholders associated with the Deal.

Every purchase whether it is small or big, involves a decision maker and some associated stakeholders like influencer, gatekeepers, actual users, etc. Always ensure you know them in advance so that the Sales Executive can do some homework researching about the stakeholders in order to present a solution which works best for their context. 

When you are asking the lead for the timelines for the purchase process, you may add another question on who shall be the decision maker or stakeholders involved in each stage of the purchase process.


Disclaimer: Funny Images sourced from Multiple Internet sources, No copyright claimed


I hope you liked reading this post, do comment below and let me know your thoughts.

If you are looking for a Sales CRM to manage your sales leads, why don't you check out ToolsonCloud CRM?

How to Track a Deal to Closure in Sales CRM
Being a Sales Professional, when you are involved with multiple B2B sales deals, the only way you can taken them to closure is by regular and effective tracking. Most of the people start with tracking it within an excel workbook. But soon they realize they cannot make out anything of that data or are unable to find any relationship between multiple data sources and tables pilling up in so many excel based tracker files. 
Moreover the time taken to do data entry of all those deal history eats up more than 3-4 hrs of your productive work hours per day. What an ultimate way to dissipate your precious time! Isn't it?


In this post, Let us learn how to track a deal in ToolsOnCloud Sales CRM.


Steps to Add Deals in ToolsonCloud CRM:
  • Login to ToolsonCloud Sales CRM.
  • Click on "Deals" link in the navbar and navigate to Deals Management Page.
  • Deals Management page is the page which gives an overview of all the active deals which are open and needs some action in near future to help close that deal.
  • Click on "Add Deal", a dialog box shall open.
  • In "Add Deal" dialog box, Enter the basic mandatory information of a deal like 
    1. Deal name, 
    2. Organization or the Client Company associated with the deal, 
    3. Name of Client Point of Contact for this deal,
    4. The current stage of the deal like New, Contacted, Presentation, Negotiation to Won/Lost. You can also customize the stages in CRM Settings,
    5. Estimated Value of the Deal (a Rough estimate can also be given if unknown),  
    6. Expected date when you plan to close the deal.
  • Once you click on "add", a deal record shall be created. You can repeat the steps for all your other deals as and when you get them in your pipeline.

How does it helps me in Deal Tracking & Opportunity Management?

  • You can get a view of all the active deals in various stages and view it visually to know where to act at that moment.
  • Getting a Sales done is all about building an Opportunity pipeline and following up with the clients for closure by helping them clarify their doubts or solve their challenging problems or situations  at various stages and take it to Closure.
  • With you having a visual view of how your pipeline looks, you shall understand whether you need to put effort towards building your pipeline or need to spend some time on the the so many deals which are getting stuck in negotiation stage of the sales pipeline or if you need some more efforts on the multiple deals lying idle since you missed to follow up after the first contact you made.
  • Better visibility on the Deal Value shall give you the insights to take call on which opportunity should be taken on higher priority than the one with lesser Deal value based on the way you operate your business. It differs from the way businesses operate, Some prefer to try the hard but big deal value opportunity, while some prefer trying to grab the low hanging fruits with low deal value first, so that the risk remains low since you iteratively get the revenues confirmed in small small deals.
  • With the Estimated Deal close date, you get the visibility on which opportunity is taking more time that expected and where the deal should be expected to be at this point of time if the expected date of closure is within 1 week. Time is money, if you don't close the deal on time, some other vendor shall close the same deal and you shall lose it. Hence this shall keep your team informed on the expected timelines.

Hope you found this post useful, do comment below and let us know.

If you are a Toolsoncloud CRM user, do take some time to write or share about your experience on your blogs or social media handles.

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