Business Process Outsourcing MCQ Quiz Questions

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Business Process Outsourcing MCQ Quiz Questions - Quiz

Do you know what is business process outsourcing (BPO)? If you're confident about your knowledge, try this BPO MCQ quiz below. This test will give you the chance to test your knowledge today. So, give it a shot and see how much knowledge you actually have. Before starting the test, let us remind you that business process outsourcing is the act of outsourcing some aspect of your business's operations to a third-party vendor or service provider.


Questions and Answers
  • 1. 

    Select a statement that is NOT TRUE regarding Low End BPO and High End BPO. 

    • A.

      Low End BPO is Data Entry whereas Call Center is High End BPO

    • B.

      Both Low and High End BPO focus on Domain Expertise

    • C.

      Telemarketing of Cellular Phones is Low End whereas Data Entry of Supermarkets receipts for consumer behavior is High End BPO.

    • D.

      None of the Above

    Correct Answer
    D. None of the Above
    Explanation
    The statement "Both Low and High End BPO focus on Domain Expertise" is not true. Low End BPO, such as data entry, may not require domain expertise as it primarily involves basic tasks like entering data into systems. On the other hand, High End BPO, such as call centers, may require domain expertise as it involves handling complex customer queries and providing specialized support. Therefore, the correct answer is "None of the Above."

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  • 2. 

    The Mercantile Bank in the United States has contracted out its IT services to a company called "Mercantile Technology Inc" in the Philippines and is owned by Mercantile Bank USA. What would the "Mercantile Technology Inc" be categorized?

    • A.

      Offshore Outsourcing

    • B.

      Captive Center

    • C.

      Bank Technology Center

    • D.

      All of the above

    Correct Answer
    B. Captive Center
    Explanation
    "Mercantile Technology Inc" would be categorized as a Captive Center because it is owned by Mercantile Bank USA and provides IT services exclusively for the bank. Captive centers are subsidiaries or branch offices set up by a company in a different location to handle specific functions or operations. In this case, the bank has set up its own IT center in the Philippines to handle its IT services, rather than outsourcing them to a third-party company.

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  • 3. 

    Why do you think Mauritius is considered as a cost effective destination? 

    • A.

      The country has a large pool of global BPO talents working at a relatively low salary

    • B.

      The cost of telecommunication in this country is much lower than in India

    • C.

      The cost of a specific BPO worker is 8 times lower than a similar worker which would work in a similar BPO company in the USA

    • D.

      All of the above

    Correct Answer
    C. The cost of a specific BPO worker is 8 times lower than a similar worker which would work in a similar BPO company in the USA
    Explanation
    Mauritius is considered a cost-effective destination because the cost of a specific BPO worker is significantly lower compared to a similar worker in the USA. This implies that businesses can save a significant amount of money on labor costs by outsourcing their BPO operations to Mauritius. Additionally, the country's large pool of global BPO talents working at a relatively low salary further contributes to its cost-effectiveness. Moreover, although not explicitly mentioned in the question, the lower cost of telecommunication in Mauritius compared to India also adds to its cost-effectiveness.

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  • 4. 

    Vuvuzela Entertainment Limited is an entertainment company in South Africa. It specialises in organising sports events with accompanying music entertainment. The core business of Vuvuzela is:

    • A.

      Sports

    • B.

      Entertainment

    • C.

      Sports and Entertainment

    • D.

      All of the above

    Correct Answer
    C. Sports and Entertainment
    Explanation
    Vuvuzela Entertainment Limited specializes in organizing sports events with accompanying music entertainment. This means that their core business involves both sports and entertainment. They combine the excitement of sports with the enjoyment of music entertainment, creating a unique and engaging experience for their audience.

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  • 5. 

    Which of the following options accurately describe the stages in the Growth Life Cycle in the BPO Sector?

    • A.

      Stage 1: Start Up > Stage 2: Value Addition > Stage 3: Competence Accumulation > Stage 4: Third Party Service

    • B.

      Stage 1: Third Party Service > Stage 2: Value Addition > Stage 3: Competence Accumulation > Stage 4: Start Up

    • C.

      Stage 1: Start Up > Stage 2: Value Addition > Stage 3: Third Party Service > Stage 4: Competence Accumulation

    • D.

      Stage 1: Start Up > Stage 2: Competence Accumulation > Stage 3: Third Party Service > Stage 4: Value Addition

    Correct Answer
    A. Stage 1: Start Up > Stage 2: Value Addition > Stage 3: Competence Accumulation > Stage 4: Third Party Service
    Explanation
    This answer accurately describes the stages in the Growth Life Cycle in the BPO Sector. It starts with the Start Up stage, where a new BPO company is established. Then, it moves on to the Value Addition stage, where the company adds value to its services and offerings. Next, it progresses to the Competence Accumulation stage, where the company builds up its expertise and capabilities. Finally, it reaches the Third Party Service stage, where the company starts providing services to external clients.

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  • 6. 

    Which of these is the most commonly used databases for making data entry?

    • A.

      Microsoft SQL Server, ASP, Ms Access, Oracle

    • B.

      My SQL, FoxPro, ASP, Ms Access

    • C.

      Oracle, My SQL, FoxPro, Visual Basic

    • D.

      All of the Above

    Correct Answer
    D. All of the Above
    Explanation
    All of the above options are commonly used databases for making data entry. Microsoft SQL Server, Ms Access, Oracle, My SQL, and FoxPro are all popular choices for managing and entering data into a database. Additionally, ASP and Visual Basic are programming languages commonly used for web development and can be integrated with these databases for data entry purposes.

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  • 7. 

    Which of these services are provided by a BPO company that specializes in image processing?

    • A.

      Image Scanning

    • B.

      Image Conversion

    • C.

      Archiving

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    A BPO company that specializes in image processing provides all of the mentioned services. Image scanning involves converting physical images into digital format, while image conversion refers to converting images from one file format to another. Archiving involves organizing and storing images for easy retrieval. Therefore, all of these services are provided by a BPO company specializing in image processing.

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  • 8. 

    The most common data conversion options include: 

    • A.

      Converting raw data into Microsoft Office

    • B.

      Convert from PDF to Word

    • C.

      Convert an audio file into text

    • D.

      All of the above

    Correct Answer(s)
    A. Converting raw data into Microsoft Office
    B. Convert from PDF to Word
    Explanation
    The correct answer is "All of the above." This is because the question asks for the most common data conversion options, and all three options listed (converting raw data into Microsoft Office, converting from PDF to Word, and converting an audio file into text) are commonly used methods of data conversion.

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  • 9. 

    PECS Data, a Mauritian based company is involved in transcription services for a US institution and recruiting local transcription agents. PECS Data is therefore

    • A.

      A captive center

    • B.

      A Transcription BPO Vendor

    • C.

      An Offshore Outsourcing Center

    • D.

      All of the above

    Correct Answer
    C. An Offshore Outsourcing Center
    Explanation
    PECS Data is considered an offshore outsourcing center because it is located in Mauritius and provides transcription services for a US institution. As an offshore center, it is involved in outsourcing work from one country to another, in this case, from the US to Mauritius. This allows the US institution to benefit from lower costs and access a skilled workforce in Mauritius. Therefore, the correct answer is "An Offshore Outsourcing Center."

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  • 10. 

    Name the main outsourcer country and the main BPO destination country. 

    • A.

      France, Mauritius

    • B.

      USA, Mauritius

    • C.

      Europe, India

    • D.

      USA, India

    Correct Answer
    D. USA, India
    Explanation
    The main outsourcer country refers to the country that typically hires and delegates work to another country. In this case, the main outsourcer country is the USA. The main BPO destination country refers to the country where the outsourced work is usually sent to. In this case, the main BPO destination country is India.

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  • 11. 

    Which of these are the main characteristics of knowledge process outsourcing?

    • A.

      Process are not easily codified

    • B.

      The agent has to interpret the information

    • C.

      The agent is expected to exercise judgement

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    Knowledge process outsourcing (KPO) involves tasks that are complex and require expertise, making them difficult to codify into a set process. The agent involved in KPO needs to interpret the information provided and apply their knowledge and skills to effectively handle the task. Additionally, the agent is expected to exercise judgment in making decisions and providing recommendations. Therefore, all of the given characteristics - process not easily codified, interpretation of information, and exercising judgment - are main characteristics of knowledge process outsourcing.

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  • 12. 

    The French Government has decided not to allow any telemarketing inbound calls to enter France from foreign countries except DOM-TOM. Mauritian BPO company engaging into the French Telemarketing activities should stop making these outbound calls. This is an

    • A.

      Endogenous factor

    • B.

      Semi-Exogenous factor

    • C.

      Exogenous factor

    • D.

      All of the above

    • E.

      None of the above

    Correct Answer
    C. Exogenous factor
    Explanation
    The French Government's decision to not allow any telemarketing inbound calls from foreign countries except DOM-TOM is an exogenous factor. This decision is external to the Mauritian BPO company and is beyond their control. It affects their ability to make outbound calls for French telemarketing activities.

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  • 13. 

    Which of these is the most important justification for a company to consider offshore decisions?

    • A.

      Overall cost reduction

    • B.

      Productivity improvement

    • C.

      Efficiency/Effectiveness

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    All of the above is the most important justification for a company to consider offshore decisions because offshore decisions can lead to overall cost reduction, productivity improvement, and increased efficiency and effectiveness. Offshoring can often result in lower labor costs and operational expenses, leading to cost reduction. It can also provide access to a larger talent pool and specialized skills, which can improve productivity. Additionally, offshoring can help streamline processes and operations, leading to increased efficiency and effectiveness in the company's operations. Therefore, considering all these factors, all of the options mentioned are important justifications for a company to consider offshore decisions.

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  • 14. 

    In terms of cost characteristics, re-arrange the following outsourcing location decision from low cost to high cost (a) Nearshore, (b) Onshore, (c) Offshore

    • A.

      A, b, c

    • B.

      B, a, c

    • C.

      C, a, b

    • D.

      B, c, a

    Correct Answer
    C. C, a, b
    Explanation
    The correct answer is c, a, b. Offshore outsourcing is typically the most cost-effective option as it involves contracting work to a country with significantly lower labor costs. Nearshore outsourcing is the next most cost-effective option as it involves contracting work to a neighboring country with slightly higher labor costs. Onshore outsourcing is the least cost-effective option as it involves contracting work within the same country, where labor costs are typically the highest.

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  • 15. 

    The government intervention to ensure an adequate supply of skilled workforce in BPO in a specific country can be classified as:  

    • A.

      Exogenous

    • B.

      Semi-Exogenous

    • C.

      Endogenous

    • D.

      All of the above

    Correct Answer
    B. Semi-Exogenous
    Explanation
    The government intervention to ensure an adequate supply of skilled workforce in BPO in a specific country can be classified as semi-exogenous. This is because while the government is taking action to address the issue, such as implementing policies and programs to train and educate individuals for BPO jobs, the supply of skilled workforce is still influenced by external factors such as market demand and global economic conditions. The intervention is not solely determined by internal factors within the BPO industry or the country itself, hence it is considered semi-exogenous.

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  • 16. 

    In order to improve its global attractiveness index in BPO coming years, Mauritius should leverage on its:

    • A.

      Telecom Infrastructure

    • B.

      Skills and competencies of its BPO Workforce

    • C.

      Improving national competencies into global talents

    • D.

      All of the above

    Correct Answer
    C. Improving national competencies into global talents
    Explanation
    Mauritius can improve its global attractiveness index in BPO in the coming years by focusing on improving its national competencies and transforming them into global talents. This means investing in the education and training of its workforce to enhance their skills and competencies, making them more competitive in the global BPO industry. By doing so, Mauritius can position itself as a hub for high-quality BPO services, attracting more international businesses and boosting its global attractiveness in the sector.

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  • 17. 

    BPO companies involved in transcription normally

    • A.

      Capture data and translate it into text

    • B.

      Listen to a conversation on-line and translate it into text

    • C.

      Transforming an audio file into text

    • D.

      Translate from one language into a different language

    Correct Answer
    C. Transforming an audio file into text
    Explanation
    The correct answer is "Transforming an audio file into text." In transcription, BPO companies typically convert spoken language from an audio file into written text. This process involves listening to the audio and accurately transcribing the spoken words. It does not include capturing data, translating conversations in real-time, or translating between languages.

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  • 18. 

    Which of these factors have an impact while deciding on a BPO destination?

    • A.

      Reliable telecommunications infrastructure

    • B.

      Cost of labour

    • C.

      Strong regulatory framework

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    The factors mentioned, including reliable telecommunications infrastructure, cost of labor, and a strong regulatory framework, all play a significant role in deciding on a BPO destination. A reliable telecommunications infrastructure ensures smooth communication and connectivity, which is crucial for BPO operations. The cost of labor is an important consideration as it directly affects the overall cost-effectiveness of outsourcing. A strong regulatory framework ensures compliance with laws and regulations, providing a secure and stable environment for BPO operations. Considering all these factors is necessary to make an informed decision about the best BPO destination.

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  • 19. 

    Jenny was employed as Data Entry Operator at "Star Data Ltd". Last year Jenny was offered the same position but with a salary increase of MUR 2,000 at "Super Data Ltd", a company dealing with similar activities as "Star Data Ltd". In BPO, we usually refer to this situation as

    • A.

      Attrition

    • B.

      Poaching

    • C.

      Changing Job

    • D.

      Work Placement

    Correct Answer
    B. Poaching
    Explanation
    The correct answer is "Poaching". Poaching refers to the act of hiring or enticing an employee from one company to work for another company, usually by offering better benefits or higher salary. In this situation, Jenny was offered the same position with a salary increase at a different company, indicating that she was poached by "Super Data Ltd".

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  • 20. 

    A TRUE statement between Low End and High End BPO is

    • A.

      Both Low End and High End BPO are mainly Call Centers

    • B.

      Low End BPOs offer relatively much higher salary than High End BPO

    • C.

      High End BPO have more ruled based processes than Low End BPO and therefore require more skilled manpower

    • D.

      People working in Low End BPO companies usually stay much longer in that company than those working in High End BPO

    Correct Answer
    C. High End BPO have more ruled based processes than Low End BPO and therefore require more skilled manpower
    Explanation
    High End BPOs have more ruled based processes than Low End BPOs and therefore require more skilled manpower. This implies that the work done in High End BPOs is more complex and requires a higher level of expertise compared to Low End BPOs. The statement suggests that Low End BPOs may have simpler tasks and therefore may not require as much skilled manpower.

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  • 21. 

    The AT Kearney Global Business Location index report 2009 has classified Mauritius as

    • A.

      25th in its ranking as an attractive BPO destination out of 50 countries

    • B.

      To be relatively poor in terms of skills & competencies in BPO domains

    • C.

      As a country which has made no improvement as compared to the 2008 ranking

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    The correct answer is "All of the above". According to the AT Kearney Global Business Location index report 2009, Mauritius was ranked 25th out of 50 countries as an attractive BPO destination. The report also stated that Mauritius was relatively poor in terms of skills and competencies in BPO domains. Additionally, the report mentioned that Mauritius had made no improvement compared to its 2008 ranking. Therefore, all of these statements are true based on the information provided.

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  • 22. 

    "Atom Finance BPO" is a local company engaged in Finance Process Outsourcing. It specialises in billing and invoicing services and doing work for a US Global FMCG company and for other companies involved in the MFCG activities. Which of the following therefore best describes "Atom Finance" business category?

    • A.

      Atom Finance is a "Captive Outsourcing" center for the US Global FMCG sector.

    • B.

      Atom Finance is operating in the Financial sector but specialises in the invoicing and billing operations

    • C.

      Atom Finance could be categorized as Low end BPO

    • D.

      All of the above

    Correct Answer
    B. Atom Finance is operating in the Financial sector but specialises in the invoicing and billing operations
    Explanation
    The given information states that Atom Finance is engaged in Finance Process Outsourcing and specializes in billing and invoicing services. This indicates that Atom Finance is operating in the Financial sector and focuses on invoicing and billing operations. Therefore, the statement "Atom Finance is operating in the Financial sector but specializes in the invoicing and billing operations" best describes Atom Finance's business category.

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