Seven Steps to BPO Success

Source One challenges traditional outsourcing models in new white paper

George Brooke, a noted BPO advisor and Source One have recently published a free white paper: “7 Steps to BPO Success”.  Below you will find a brief synopsis of the Business Process Outsourcing white paper.  To get your free copy of the full document or to learn more about our BPO advisory services, click here and fill our contact form, or email us at info@sourceoneinc.com.

1.      Alignment with Business Strategy & Executive Sponsorship

It is important to recognize your current market position as well as your future growth strategy and how this is defined by your core business functions.  This intelligence will help you determine which functions can be outsourced and which should be controlled internally.  The support of a top executive will be the driving force of the outsourcing project and motivate the internal cultural shift necessary to implementing a BPO solution.

2.      Process Screening, Selection, & Prioritization

Processes identified as potential outsourcing candidates should be screened to measure the standardization, centralization, and
automation of the project as well as its current efficiency and stability.  You may find, in this step, that it is more appropriate to re-engineer a process rather than outsource it.  Processes that can be improved through outsourcing should be analyzed to determine the requirements of the process including the level of complexity, hours of operation, required skills, etc.  The goal of this step is to create a roadmap for strategic planning and budgeting.

3.      Buyer Readiness 

The most basic element in the scope of work is work volume.  Accurate historical data as well as workflows and written procedures will help expedite your potential provider’s understanding of the process.  Personnel, including subject-matter experts, IT personnel, and managers, time should be allocated to collaborate, plan, and manage each project.

4.      Organizational Change Management 

Organizational change is not easily accepted with regards to outsourcing.  Your Human Resource department should be prepared to assist you and your executive sponsor with employee communications.  HR will also be of assistance with revised or new job titles, compensation structures, and training.

5.      Selection of “Best Fit” Provider 

Identify key criteria such as pricing, flexibility and scalability, security/data protection, financial stability, availability of complimentary services, and disaster recovery options.  All areas should be evaluated to determine the long-term health of the outsourcing relationship.  Should you require a provider to host and license transaction applications, a more comprehensive evaluation process is suggested, including speed and thoroughness.

6.      Collaborative Capacity and Transition Planning 

The more detail you communicate to your potential provider will increase the provider’s understanding of your priorities.  This will allow them to be more creative in offering solutions and provide a leaner proposal while still ensuring compliance.  Your provider should provide a transition manager who will monitor and facilitate the start, progress, and end of each activity.  Setting short-term goals will help you and your provider to benchmark the outsourced process and evaluate its effectiveness.

7.       Detailed Agreement That Aligns Priorities and Shares Risk 

Sections of your agreement should be divided into operations, pricing, metrics and performance standards, and liabilities and
insurance. The pricing and compensation structure should align with your priorities and support a partnership approach.  Agreements should provide flexibility to make changes.  If you do not have significant experience with BPO agreements, seek the assistance of an external specialist who can offer contract guidance and act as a buyer advocate in negotiations.

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