In today’s podcast, Julie Clements, our Chief Solutions Manager will provide key tips businesses can consider while outsourcing their back office tasks.
Listen to our podcast now!
Business process outsourcing, including back office outsourcing service model, involves forming strategic relationships wherein business organizations outsource mainly non-primary functions to third party vendors. Outsourcing really does help save costs and provides access to new technologies as well as expertise and technical resources of other organizations. A major advantage of outsourcing is that it provides access to skilled and professional employees. It is important that every business organization properly manages and monitors internally to ensure that their service provider is easy to integrate and can provide meaningful management information.
According to recent research data, 57 percent of companies outsource various processes to improve and focus on core competencies. Affordability of advanced technology and increase in minimum wage has brought in a new type of offering called onshore BPO or domestic BPO. The decision to outsource is a big one and has to be made very carefully, and the vendor must be selected after taking many important factors into consideration. Here are certain fundamental questions one should consider when choosing a vendor:
- If you’re looking whether for local or offshore, companies now prefer on shore vendors, because data entry jobs overseas to cut costs can lead to risks. Choosing a local BPO service can be beneficial in the long run.
- BPO payment structure. Fees for BPO services are based on specific service level agreements also (SLA) and key performance indicators. There should be clarity in payment structures and this should be understood before going for the outsourcing alliance. Usually, penalties may be there for missing SLA targets.
- Another thing to think about is where the data is stored. Technology is an important component of BPO services as it can reduce costs and improve efficiency. The data handled is subject to the laws of the jurisdiction in which it is stored. So, a country’s data privacy laws may govern what can or cannot be done with the data stored there. So, when you are outsourcing, companies should know where the data is stored and under what jurisdiction it is governed.
- Temporary staffing service or BPO service provide you with the right blend of skilled people, processes, and technology to achieve your desirable results. A good BPO service is based on quantifiable results as opposed to quantifiable activities. BPO solutions include all types of methods, tools and labour that are important for achieving your desired results. If your vendor is offering a temporary staffing solution, understand that it is based on activity and includes labor only, and not results. BPO services are result-oriented whereas a temporary staffing service is activity centric.
- Another thing is the value offered. Non-core activities such as document management can consume considerable time and money and take away focus from a company’s core competencies. When outsourcing, organizations should evaluate the overall value an experienced BPO provider can ensure.
Many businesses are facing great shortage of technology and then according to a Harvey Nash/ KPMG survey, 65 percent of CIOs said that they believe a lack of talent is preventing them from keeping up with the rapid pace of technology. So, this has led to outsourcing and staff augmentation as it helps to execute entire projects using outside resources. When choosing a good outsourcing service provider such as a data entry company for instance, consider criteria such as time zones, education systems, demographics, cultural and so on. Other important attributes to look for include easy access, excellent aptitude for industry specific contracts, and good language and communication skills are always a must. If you want some further information you can visit our web site at www.managedoutsource.com.