Time
Careful preparation is – as often in life – everything! The starting point must be the analysis of the existing current processes and, as a result, the targeted formulation of requirements and expectations of the outsourcing partner. The process to be outsourced must almost always be prepared for sourcing. Among other things, it is necessary to define which tasks and to what extent are to be carried out externally, which quality standards apply and which proven processes or communication channels must be maintained at all costs. If essential issues and issues are not clarified in advance, but only occur in the new ongoing processes and have to be eliminated at short notice, disruptions and delays are shifted into the future. Additional costs are then inevitable.
Outsourcing is not cheap
Do you see BPO as a quick way to save money? Then you could overlook other effects that only result from a long-term partnership with a strategic partner:
- better quality,
- Risk reduction
- improved work processes,
- Automation and use of proven software robots.
Certificates help
The importance of the quality of processes and compliance with legal regulations should not be underestimated either. Both can be achieved through outsourcing: The necessary certificates from the service provider save you costs for communication and detailed audits by auditors and supervisory authorities.
Costs are not everything
BPO can help solve problems regarding:
- Structure in the processes,
- Documentation of processes,
- Optimization of processes and routines,
- Use of modern technologies,
- know-how and competence as well as
- Ensuring human resources and capacities.
Focusing only on costs is far too short-sighted.
Bricklayer or consultant?
Define in advance in which role you want your BPO service provider to be: effective processor or critical consultant & process improver? Both models are conceivable, but the wrong approach can lead to lasting disappointment.
Check system knowledge
Does the potential outsourcing partner have expertise and experience with the applications and ERP solutions you use? If, for example, you want to switch to a new invoice verification workflow or a new ERP system, it is important that the partner ideally has the appropriate experience and has already carried out or accompanied comparable projects. Professional handling of the IT application is crucial to success!
Responsibilities must be crystal clear!
A transparent and manageable process for the implementation and operational operation of the outsourcing contract is also a critical success factor. Clearly clarify the governance model with the BPO partner:
- at a strategic level,
- at the tactical level as well as at the
- operational level.
Industry experience helps
What good is outsourcing if the service provider does not know our processes? To reap the benefits of outsourcing, companies should choose an outsourcing provider with industry experience if possible. As a rule, this means that process outsourcing can be carried out faster and more reliably and there are fewer problems during operation.
Choose the right size
If the BPO service provider is too big, you may be just a number among many customers. If it’s too small, the service provider won’t grow with you or you’ll face capacity issues.
Conversion means change
Outsourcing projects represent quite a serious change. This can create unrest. The client company must document its process flows and pass on its knowledge to the employees of the outsourcing partner. In addition, there are legal questions that must be clarified on both sides.
Don’t underestimate your own effort
Even if the service provider is professional and experienced, considerable effort must be invested on both sides in the first year for process optimization, fine-tuning and interfaces. Investing energy in this pays off for years to come.
Think about the end at the beginning
Agree in the contract on the procedure that will enable an orderly transition in the event of termination of the cooperation (handover of documents, data, sale of necessary machines, handover of programs, release of employees, etc.). Otherwise, it will be unsorted and expensive.
Conclusion: Sounds damn exhausting, doesn’t it? But it’s worth it!
Image source: Unsplash, Photographer: Sigmund
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