An approach to managing customer complaints, support requests, and queries is to outsource customer support services to specialist suppliers. During busy seasons, FedEx will handle high call volumes by collaborating with a business process outsourcing (BPO) company. FedEx can access outside customer service knowledge through BPO while still having strategic decision-making authority. The cost-effectiveness and flexibility offered by this approach make it especially beneficial for non-core tasks like customer service. FedEx may improve customer happiness and loyalty by utilizing business process outsourcing (BPO) to save operating costs, optimize customer relations, and maintain high service standards during peak hours. (Basch, 2002)
IT Support Service:
FedEx is outsourcing its IT support services, which means that outside professionals are handling helpdesk and technical support duties. This entails having outside partners provide FedEx's digital infrastructure with round-the-clock IT assistance, guaranteeing the smooth and uninterrupted operation of the business's IT systems. (Basch, 2002) This kind of outsourcing is classified as Business Process Outsourcing (BPO), which is a strategic strategy in which specialized service providers are tasked with handling complete business processes. FedEx may optimize its operations and leverage outside expertise while focusing on its core competencies by choosing business process outsourcing (BPO) for IT support. This enables the business to increase overall productivity while staying focused on its major goals.
Reference:
Williford, J., & Chang, A. (1999). Modeling the FedEx IT division: a system dynamics approach to strategic IT planning. Journal of Systems and Software, 46(2-3), 203-211.
https://www.sciencedirect.com/science/article/abs/pii/S0164121299000138