Business Process outsourcing as a function has evolved tremendously in the recent years. Today outsourcing of business processes have become an accepted management practice among the companies and companies do so for various reasons. In fact now company heads discuss as to what are the processes they need to keep and how much to be outsourced to a provider who can perform process better than them and moreover improve the process from time to time so as to grow.
The research report on high-performance BPO by Accenture says that companies can improve their business by adopting and following the best outsourcing strategies. The report was prepared by extracting experiences and lessons from hundreds of companies and executives. The best practices shared by Accenture through their research report can be applied to many companies to improve their overall performance. The report mainly discusses eight high performing outsourcing practices and they are as follows;
- Holistic end to end approach: The BPOs and their clients should work together to bring excellence in overall process of the business beyond the service level agreement. The BPOs should consider the entire process of their clients under their purview which have an impact on the overall performance of the business.
- Developing a partnership attitude: The client companies should consider their BPOs as their strategic partner. The senior leaders of the both parties should work collaboratively to strengthen their relationship, to understand each other’s objectives and to drive the organization towards performance excellence.
- Manage Change: It is important for the companies to manage change in their organizations especially during its transition from previous operations to new outsourcing operations as well as to adapt to the new environment quickly.
- Focus on value beyond cost: Gone are the days when companies expect only cost reduction from their outsourcing partners. Today the clients expect more from them. BPOs should strive to create more business value for their clients rather focusing only on cost reduction.
- Target on business outcomes: Companies and their BPO partners should target on the outcomes from outsourcing arrangements. Companies and BPOs can enter into contractual agreements in which BPOs agree to pay penalties if they do not deliver the desired outcome and companies agreeing to share the reward with their partners if they deliver.
- Develop domain expertise and analytics ability: BPOs should use their deep industry knowledge and expertise to solve the problems and to deliver higher business value for their clients. They should build up the ability to analyze data to predict the outcomes for their clients’ business.
- Help the organizations to perform well: The outsourcing partners should help the organization to perform well in the new outsourcing operations model. They can help the organization to align them around the new delivery model in terms of defining new roles, responsibilities and required skills.
- Using technology to drive business: Technology ability of BPOs play an important role in building a strategic relationship with client companies. Technology will act as a source for the companies to drive innovation in their business and to bring in greater transparency in all their processes.
By adopting these smart outsourcing practices, both companies and BPO service providers can build up a greater business value and new competitive strengths which will benefit both the parties in the long term.
You can read the entire the report here.