The practice of having one or more of your business functions contracted out to a third party department or organisation. The functions tend to be support based, such as Payroll and Administration, Facilities Management, Building Maintenance and Information Technology.
What expectations should you have from Strategic BPO?
Greater operational efficiency. Outsourcing lets you focus on core activities, can save costs, promotes efficiency, keeps operational control, offers staffing flexibility, provides continuity and risk management and lets you develop internal staff. Done successfully, it can significantly increase your bottom line.
Benefits of using BPG to facilitate your Strategic BPO Relationship?
We know what practices work really well. Having optimised over 500 complex supplier relationships, we have deep expertise of trust building, proven processes and templates, along with expertise in what actions you need to avoid to make sure your strategic outsourcing relationship achieves your outcomes, quickly.
What BPG delivers – Outsourcing Assurance
Maximum value in your relationship. We help you make sure your requirements and expectations are internally agreed within your organisation, that these are clearly communicated to the supplier market, simplifying the procurement and contracting process so you know ‘the art of the possible’ and engage with fit for purpose outsourcing supplier(s) to generate maximum value.
Why BPG’s process is so important
A stable relationship promotes innovation. Our process will drive great behaviours between you both and optimise your service innovation process at the same time as reducing your BAU costs.
Considerations of Strategic / Complex Outsourcing
How does Strategic Outsourcing work?
Outsourcing often involves the transfer of existing staff, current operating processes and, subject to the service being outsourced, such as IT or facilities and building maintenance, may involve the transfer of assets too.
You may outsource to one primary supplier (a single source) who runs and manages the end-to-end service and is responsible for co-dependencies and integration.
Alternatively, where you may need ‘best of breed’ service delivery, you would outsource to multiple suppliers (a multi-source or mixed economy; some may be in-house) where each supplier provides a specific service.
In this multi-source scenario, it means that you as the client, manages any integration and co-dependencies between each supplier as necessary, for the service to be delivered successfully.
What challenges typically arise with BPO?
We’ve dealt with optimising over 500 complex supplier relationships. More than 50% of complex supplier relationships experience misunderstandings between client and supplier over your requirements and expectations.
If the right foundations are not in place to drive maximum value, you may experience:
Additional charges and costs for ‘misunderstood expectations’
A lack of understanding of contractual roles and responsibilities
Governance and performance escalation not clearly delineated
Senior client executives not being clear on their expectations and dynamics of the relationship
Not enough investment by senior executives in the resourcing or skills of the client supplier management team
Loss of key in-house expertise to the supplier (inadvertent staff poaching)
Employee resistance to new working methods from the supplier
Clashes of culture between client and supplier staff and so forth.
When complex/strategic outsourcing works, it works really well. If you have clarity of the business outcomes you wish to achieve, operate in a genuine collaborative manner with appropriate levels of relationship management, contract management and performance management, you’ll often encourage really excellent innovation from your supplier and drive the costs of BAU service delivery down to its most optimum.
Many challenges exist to put in these collaborative and innovation foundations however. If done well, you can expect driving a much better return on your investment; sometimes reducing your optimum cost base for BAU services by up to 35%. Done badly, without key foundations in place, your BAU services will often end up at lower service levels than you have now, and your costs are likely to escalate and be far more expensive than your current operating costs.
Don’t end up in this way. Use our ‘Optimise’ method to generate maximum value and the highest market reputation.
A few examples of Complex/Strategic Outsourcing Relationships we support
Building Maintenance Services
Hard and Soft FM Services
Complex IT Software and Systems Integration
Maintenance, Repair and Operations
Customer Service/Contract Centres
Strategic Human Resources/Human Capital Management
Revenues and Benefits
Strategic Transformation Services
Legal and Professional Services
Manufacturing; Complex Assembly/Product Development
Some of the Strategic Outsourcing Suppliers we have detailed knowledge of
Canon Business Process Services
Cushman & Wakefield
GeBBS Healthcare Solutions
HCL Technologies Limited
Indecomm Global Services
Intelenet Global Services
Kelly Outsourcing and Consulting
Newmark Knight Frank
NTT DATA Services
RR Donnelley Global Outsourcing
SCICOM (MSC) Berhad
Swiss Post Solutions
TEAM International Services
VXI Global Solutions
Willis Towers Watson
WNS Global Services
What stage are you at in your BPO/Outsourcing Relationship?
You’re designing, procuring or contracting and you need it to work really well.