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Relevance of KPI and SLA for Philippine BPO

BPO is a business process outsourcing model many Philippine companies use to run their operations. However, some myths are associated with BPO companies in the Philippines and how it is being implemented. One of these myths is that BPO only involves call centers and other customer service agents and not much else. There’s more to outsourcing in the Philippines than just dealing with customers over the phone or online.

In this article, we’ll discuss one aspect of BPO, Key Performance Indicators (KPIs), and Service Level Agreements (SLAs). These two things are essential aspects of any outsourced work project, including BPO projects in the Philippines.

Key Performance Indicator (KPI)

The KPIs are used to measure the performance of an individual, team, business unit, and even the entire company. The KPIs may be set at different levels depending on the situation.

For example, if a call center wants to improve its customer service quality, it will set specific KPI targets for every agent in that particular call center. If the call center wants to improve its overall customer satisfaction, it will develop KPIs for each department to measure its performance against those goals.

The KPIs should be based on your core values and goals and realistic expectations about what you can achieve within a given period, usually one year. They should also reflect your company’s overall vision so that everyone involved with its achievement feels motivated by them.

The importance of a KPI

KPIs are important as they help measure the performance of your business. They allow you to know if you’re doing well or not, so you can make adjustments when needed.

KPIs help determine how well your business performs, especially if you want to improve its operations or marketing strategies. If you still need to set up KPIs, it would be easier for someone who doesn’t know much about the industry to give feedback about whether your company is doing well.

When planning a project with KPIs, it’s best practice for them to fall under one category, financial or non-financial metrics. Financial metrics include profit margin and cost per conversion rate, while non-financial metrics include customer satisfaction surveys/surveys sent out after each call session ends.

Service Level Agreements (SLAs)

A service level agreement or SLA is a formal contract between two parties. SLA is also referred to as a service level commitment and a service level objective. It’s an agreement that sets the terms and conditions of the relationship between provider and customer.

The SLA describes how to meet performance, availability, security, capacity, product features, and more requirements.

Creating an SLA

The SLA defines what each party will do to deliver on their end of the agreement and lays out penalties if one or both parties fail to meet those requirements.

This document can vary significantly in length depending on the complexity of your relationship with your clients and suppliers. Some companies include dozens of pages detailing every aspect of what they expect from their partners. Others opt for bullet points outlining only the most basic details about how each party should perform its duties.

But whatever form it takes, certain standard elements should be included in every SLA.

  • The scope of work each party performs or what exactly will be delivered.
  • A definition of service level commitments or how much service should be provided.

The SLA serves multiple purposes, including measuring performance, improvement, and cost reduction. This document also helps increase revenue for your business and provide a better customer experience.


Companies looking to improve their performance should look into SLAs and KPIs. They can be beneficial for any industry, but they’re instrumental to BPO companies in the Philippines because they provide a way to measure how well your organization is doing and what your goals are. Setting these standards gives you more control over what happens daily so that it can be noticed when there isn’t enough time or resources available.

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