Executive Briefings

Importance of Relationship Between Company Outsourcing Business Processes and BPO Provider Can't Be Overstated

Over the last year, we've posted a number of blogs and published some articles on the benefits of outsourcing. We've discussed the reasons why companies choose to outsource specific functions and shown how business process outsourcing (BPO) providers can actually improve operations and save money. What we glossed over was the necessary relationship that has to exist between the company that's outsourcing and its provider. Making a success out of this relationship is a shared responsibility, one that cannot be overstated.

Importance of Relationship Between Company Outsourcing Business Processes and BPO Provider Can't Be Overstated

So why do companies decide to turn to outside resources? Each company may have its own specific reasons for doing so; however, here are a few that are common to most decisions:

Greater efficiencies/reduced costs - Every department within an enterprise is now evaluated by how much it contributes to the bottom line. Even though practically every department plays an important part in the company's success, there are often low value-added processes or tasks that can easily be outsourced. This could mean reduced staff or utilizing existing staff for greater effectiveness.

Focus on core competency - Companies need to take a long hard look at what makes them special; at the reasons that people continue to do business with them. They need to consider what factors contribute to that success and keep those elements in-house. Then, companies have to identify those areas on which they expend more in time and money than they see in returns. Those are the areas to consider outsourcing.

Lack of expertise -Changing technology, new forms of communication, ongoing maintenance; all of these are expensive. And most companies don't generate the kind of revenues necessary to keep specialists in these areas as permanent staff. Companies that steer existing staff into these areas often find that this move saves them little money when upgrades fail or are delayed, communication content is lacking, or systems actually crash. Going to providers that specialize in specific areas will save time and money.

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Keywords: business process management, BPO, outsourcing, supply chain management, supply chain IT, supply chain solutions

So why do companies decide to turn to outside resources? Each company may have its own specific reasons for doing so; however, here are a few that are common to most decisions:

Greater efficiencies/reduced costs - Every department within an enterprise is now evaluated by how much it contributes to the bottom line. Even though practically every department plays an important part in the company's success, there are often low value-added processes or tasks that can easily be outsourced. This could mean reduced staff or utilizing existing staff for greater effectiveness.

Focus on core competency - Companies need to take a long hard look at what makes them special; at the reasons that people continue to do business with them. They need to consider what factors contribute to that success and keep those elements in-house. Then, companies have to identify those areas on which they expend more in time and money than they see in returns. Those are the areas to consider outsourcing.

Lack of expertise -Changing technology, new forms of communication, ongoing maintenance; all of these are expensive. And most companies don't generate the kind of revenues necessary to keep specialists in these areas as permanent staff. Companies that steer existing staff into these areas often find that this move saves them little money when upgrades fail or are delayed, communication content is lacking, or systems actually crash. Going to providers that specialize in specific areas will save time and money.

Read Full Article

Keywords: business process management, BPO, outsourcing, supply chain management, supply chain IT, supply chain solutions

Importance of Relationship Between Company Outsourcing Business Processes and BPO Provider Can't Be Overstated