Business process outsourcing (BPO) is the contracting of a business function to a third-party provider. Some of the most common BPO services include:
- Social media marketing
- Customer support
Businesses often hire outside contractors or agencies to cut costs while improving the customer experience.
Hiring BPO providers to manage specific functions of your business can free up the time and resources of your in-house team and cut expenses. You can work with experts who may be able to improve on the processes you have in place.
In this article, we share tips for maximizing the success of your relationship with BPO companies.
Define Your Business Process
Before you outsource a business function, ensure that you understand the process’s performance in-house. Track, measure, and record your efforts so that you have something to compare it to when it’s time to evaluate the success of your service provider.
Then, define the scope of work and the benchmarks you expect a service provider to achieve, so you’re able to convey the information to a third party.
Finally, once you’ve clearly defined your goals, decide how you’ll track and measure the success of your outsourced business process.
Find the Right Provider for Your Business
You may be outsourcing to help cut expenses, but that doesn’t mean you have to compromise on the quality of your service provider. Look for a contractor or agency that:
- Can surpass your in-house expertise
- Offers a higher-quality service than what your in-house team can produce
- Is looking to build a long-term partnership with your company
- Is a good fit with your company culture and mission
Many businesses depend on referrals to help them find a reliable service provider.
For example, a social media marketing study found that when companies are seeking a social media agency, more than 40% of them rely on referrals and 15% turn to Google.
Build a Partnership
To build a partnership with your contractor, begin by communicating a clear company strategy.
Build and nurture your relationship by creating an open communications system that allows space to get and give feedback.
Listening to suggestions, or even soliciting them, is one step toward a collaboration that results in an engaged outsourcing relationship that can last for many years.
Sekhar Ramaswamy, vice president of HR at Prudential Financial, worked successfully with one contractor, Exult, for over ten years. He says that the key to a successful BPO endeavor is building a true partnership.
To build this partnership, Ramaswamy explains, “We do joint planning on business goals, many of which are joint goals. We have a joint roadmap for success.”
Consider a Strategic Approach to Business Process Outsourcing
Maximize the success of your outsourcing processes by clearly defining your goals and expectations, working toward a mutual partnership, and on-boarding new providers with a clear strategy in place.