In this blog, it is often asserted that BPO clients should collaborate with their service providers. But how exactly can you establish a collaborative strategy that can generate value? By applying insights from HFS Research's Blueprint 2.0, here's how Australian SMEs can gain value from outsourced business processes that go beyond low costs.
Define Value
The client and service provider should determine what their definition of “value” is. If the BPO client is primarily focused on cost savings, it doesn't provide much room for service providers to deliver solutions beyond basic capabilities. On the other hand, if service providers are focused on just meeting SLAs, clients won't be getting anything other than less expensive labour.
Both parties should share their corporate strategy to establish clear objectives and goals. This first step aligns the SME's corporate objectives with the service provider's goals.
Measure Value
Establish a scorecard that measures the source of each value. The performance measurement should not just revolve around the operational aspect of the offshoring contract. For example, more value should be placed on customer satisfaction, not just how many calls are answered per minute.
In offshoring, many businesses often focus too much on the cost savings that it overshadows the value that can be derived from their offshore team. Apart from service requirements, performance measurements should include how they can generate value for the business, such as upholding or supporting the company brand.
Potential measures of value for SMEs:
- Flexibility and scalability
- Increase in quality
- Brand reinforcement
- Product or service imagination
- New process capability
- Capital expense avoidance
- New market development
- Timelines
Establish Value Expectations
Identify the desired outcomes for both parties. Clients and service providers can develop a timeframe and methodology if this can't be completed quickly. This step establishes a clear endgame and help steer the offshoring deal to the right direction.
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