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Business process outsourcing: best practices

Modern technologies, especially information and communication technology ICT has changed the landscape of businesses, the model of businesses and processes. Business process outsourcing BPO is one of the major models that excite entrepreneurs tremendously.

More than 70% of young people in the USA want to start their own business which is influenced by different types of outsourcing in one way or the other. A major component of the outsourcing model is BPO outsourcing which has grown exponentially during the past couple of decades.

According to the Grand View Research projection, the total volume of the BPO market is expected to cross the $343.2 billion mark by 2025 with a whopping growth of 7.4% CAGR.

In the present business ecosystem, BPO has become one of the business basics for all types of companies including business process outsourcing providers worldwide. Let’s have a look at the basics of BPO and the best practices to achieve the desired business bottom line.

What Is Business Process Outsourcing BPO?

BPO is a human resource management model, in which an entire business process, project, or business function of non-primary criticality is delegated to the third party to accomplish on behalf of the client.

Client contracts with the BPO company to fully manage the entire process, project, or function with predefined terms related to the cost, liquidated damages, performance criteria, and quality of service.

The BPO outsource company manages the entire process with its resources on pre-agreed financial terms and conditions. 

BPO is a fully managed service for certain functions and processes that are normally not very critical for the core business idea.

The major functions and processes that are outsourced include customer support, customer relationship management, maintenance services, call centres, payroll management, human resource management, and similar types of other processes.

How to Achieve High Performance through BPO Solutions?

The next-generation BPO is not only the name of getting any business process accomplished from the third party but also it is a comprehensive business development and performance-enhancing model.

You can achieve the best performance through BPO solutions by using them more effectively and efficiently.

#1 Effective Business Process Mapping

An effective business process is the most fundamental way to achieve high performance through BPO solutions. This requires a piece of comprehensive knowledge, experience, and expertise to know and assess all aspects of the business processes that you want to map.

You need comprehensive documentation of the entire process, its controls, and the description of roles and much more. A well-defined process, well-assessed requirements, and proper allocation of tasks and resources to the concerned roles will help you improve the performance of BPO solutions.

You can choose the most effective process modelling techniques such as business process modelling notation (BPMN), unified modelling language (UML), Gantt chart, flowchart, or any other technique that can map the business process more effectively and clearly.

#2 Choosing the Right Process for Outsourcing

Choosing the right process for outsourcing will directly impact the performance of your business process as well as the BPO solution. The process that you want to outsource should be properly examined and assessed before choosing to outsource. A wrong selection may cause problems for your business rather than providing any positive impact on your business.

#3 Choosing the Right BPO Company

Handing over your business process or project to any wrong BPO company may lead to disastrous results. So, always scrutinize the BPO companies professionally from multiple aspects before signing any BPO agreement. The desired BPO Company should be well equipped, experienced, and rich in professional attitude. 

#4 Developing Better Synergy

Once you identified the process to outsource and chosen the company, you need to focus on the positive synergy to establish a good relationship between the client and the BPO provider. This will develop a congenial work environment and will also have in improving the performance of the business process through an effective BPO solution. 

Major Best Practices for Outsourcing Functions

Whether you outsource an entire process, project, or function, you will have to follow the best practices to achieve the desired goals. A few of those best practices commonly adopted in cross-industries are listed below.

#1 Best Leaders to Lead

like other performance models, BPO also requires great leaders to achieve the desired goals. In a BPO environment, you need two top leaders on both sides – client and provider sides. These leaders should be collaborative, cooperative, understanding, and visionary.

#2 Always Focus on Benefit Not on Cost

Though BPO is known for cost-saving, you should focus on the overall benefit of the organization, not the cost only. This will help you achieve the desired goals effectively.

#3 Adopt Partnership Approach

Always adopt a partnership approach rather than the client-provider approach. This approach improves synergies and subsequently the performance of the process. Both sides should adopt this approach for better results.

#4 Map the Process at Length

Mapping a BPO process in full detail will always generate a fruitful outcome. You should adopt the most detail-oriented mapping technique so that nothing misses out while mapping. This will help you in better planning resources, results, and performance.

#5 Comprehensive Service Level Agreement SLA

While drafting SLA, both parties should focus on all the details related to performance indicators, penalties, escalation matrix, litigation, claims, rewards, and all other such factors. This will help in creating a clear, transparent, and congenial work environment.

#6 Always Focus on Cutting-Edge Technologies

Basically, BPO took shape due to the emergence of ICT technologies. The use of the latest technologies would help you improve BPO performance. So, always focus on the innovative approach based on cutting-edge technologies.s

#7 Conflict Should Be Nip in the Bud

Conflicts always affect adversely BPO performance and partnership. So, the conflicts should be a nip in the bud and no escalation should be allowed. Conflict should be settled fairly without crossing the lines of partnership agreements.

Final Takeaway

BPO is one of the fastest-growing fields in all sizes and sectors of business. It helps businesses to focus on the core of the business idea without paying attention to non-primary processes and functions.

BPO also help businesses reduce operational cost, improve process efficiency, and increase business productivity. It will keep opening new dimensions of outsourcing models of businesses in the future.

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