Effective business process outsourcing: tips for successful collaboration

  • May 2, 2024

BPO in practice

Business Process Outsourcing (BPO) - or the outsourcing of business processes - is a widespread strategy for reducing costs and increasing efficiency

Nevertheless, many BPO projects do not reach their full potential, often due to inadequate preparation. Daily collaboration with the external service provider also requires a clear definition of the interfaces.

Process analysis is essential

As early as the planning phase, companies should carefully examine which business processes are suitable for outsourcing. A decisive criterion is whether the process can be standardised; outsourcing only makes sense if the service provider can work independently. 

Processes that require intensive communication and consultation are less suitable.

It should also be analysed whether a process belongs to the core competencies. Typically, non-product-related processes with low added value and lower quality requirements are particularly suitable for outsourcing.

Product-related processes, on the other hand, should only be outsourced if the service provider can perform them with the same or higher quality.

Another factor is the frequency of changes to the process, particularly in the case of regulatory adjustments, which can make outsourcing attractive as the external partner takes on the change management.

Choosing the right partner

The selection of a suitable service provider begins with the creation of a detailed specification sheet that describes the processes to be outsourced and the company's entire process and IT landscape.

A key element of partner selection is the ability to automate processes in order to increase efficiency and minimise sources of error. Service providers with many years of experience in process optimisation are often the better choice.

It is also important that the service provider understands the specific requirements of the target customers and is flexible enough to respond to rapid market changes.

Structured implementation

The implementation should be supported by a detailed project plan that specifies how and when the external partner will realise the requirements.

In order to avoid ambiguities and the resulting cost explosions, services should not be billed on a time and material basis but at fixed package prices. Cost transparency strengthens trust between the partners and facilitates internal billing.

Communication and technical interfaces

One of the main tasks during implementation is the definition and design of technical interfaces between internal and external systems. Efficient communication between internal and external teams is just as critical.

The use of ticket systems instead of e-mail or telephone can not only simplify communication, but also document it and thus clearly regulate responsibilities.

Feedback from processes

It is possible to bring processes back in-house, but this should be planned just as carefully as outsourcing. Ideally, companies should already make provisions for a possible return when outsourcing is commissioned, including arrangements for data migration and handover..

This comprehensive consideration and careful preparation are crucial in order to fully realise the benefits of business process outsourcing and avoid typical pitfalls.

 

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