Choosing the best business process outsourcing partner
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As companies seek options to improve efficiency, lower costs, and allow staff to focus more time on what’s most important, many are discovering the advantages of outsourcing non-core functions to specialized business process outsourcing firms. Working with a BPO firm can significantly impact a company’s strategy, enhancing efficiency and customer satisfaction.
When companies use BPO solutions, such as field services or customer service operations, they outsource those elements of their business to external providers that function as transparent extensions of their company. In other words, customers interacting with these BPO companies have no idea they’re not dealing directly with your organization.
That’s why it’s important to remember that a BPO provider will become an integral part of your company’s operations. While your primary goal may be to reduce operating costs, making vendor decisions on price alone can be a dangerous call – especially when sales and your reputation are at stake.
It may seem obvious, but choosing a BPO partner should begin with a solid understanding of exactly what you hope to accomplish. It’s not a time for vague goals like “let’s reduce expenses.”
You should be able to document what it currently costs your business to deliver those functions internally, so you have an accurate basis of comparison with what business process outsourcing companies provide. Ensuring that the chosen provider aligns with your business strategy is crucial for long-term success.
It’s also important to take an honest look at whether the function you’d like to outsource is suited for that kind of arrangement. Whether you want to reduce operational costs, improve service quality, scale quickly, or access specialized expertise, your goal should inform the selection.
Once you’ve clearly defined your objectives, assess the expertise of potential BPO partners to ensure they have the experience and capabilities to deliver what you need. Look closely at their people and technology to see how they’ll provide services. Talk to their existing clients to get a sense of the working relationship and real-world performance.
Don’t neglect cultural considerations, especially if customer support is one of the functions you hope to outsource. If your goal is truly to provide service that delights your customers, a budget-priced offshore provider won’t be your best option. Agents who sound like our neighbors typically rate higher satisfaction scores. Make sure the provider’s locations and practices align with your operational needs and your cultural expectations, which are essential components of a strong business strategy.
Will your BPO provider’s system protect your sensitive data, or will its sub-par security expose your company to cyberthreats? Don’t settle for vague promises. Instead, review their data security policies and protocols to verify they have robust cybersecurity measures in place, such as encryption, access controls, and regular audits. That’s especially important if your organization is expected to comply with industry standards such as GDPR (General Data Protection Regulation), PCI DSS (Payment Card Industry Data Security Standard), or HIPAA (Health Insurance Portability and Accountability Act).
Also keep in mind that what your business will need a year or two from now is likely to differ from your immediate needs. That’s why it’s important to choose a partner that’s capable of ramping up services when you have a need — or scaling them back during slower seasons.
The ideal BPO provider isn’t going to be a short-term vendor. Instead, the relationship should become a long-term partnership that grows and evolves along with your company’s needs. That’s why it’s important to know that your provider has the financial stability and operations to ensure they’ll be able to support your business objectives for the foreseeable future.
Finally, it’s critical to know whether your BPO provider is actually helping you achieve your important goals? It’s vital to establish both service level agreements (SLAs) and key performance indicators (KPIs) based on the most important factors for success, and then to track the provider’s performance at fulfilling (or exceeding) your expectations. Depending upon your company’s specific needs, these may include metrics like customer satisfaction scores, turnaround time, and error rates. That way, you should be able to see clear evidence of the benefits of putting the right BPO partner to work for you.
Jeff Medley is the CEO and founder of Netfor, https://www.netfor.com/