Written by Allie Delos Santos
Optimizing business functions through outsourcing is increasingly becoming a norm for companies in the U.S. Executives can agree that if an area of the business is not a key differentiator for the company, it can and should be outsourced as long as the provider delivers the required service levels.
For example, clients can outsource to a BPO company in Phoenix to optimize its processes. This article explores how companies can achieve optimization and process efficiency through outsourcing in Arizona.
Key Factors for Successful Process Optimization in Outsourcing
So what is optimization in business process outsourcing (BPO)? This approach involves improving organizational efficiency by improving processes. Optimized processes lead to optimized business goals. Examples of optimization include streamlining workflow, removing redundancies, forecasting changes, and enhancing communication.
The gig economy is flourishing, with an estimated 300,000 outsourced positions yearly. However, the decision to outsource is a big one that can make or break your company. It can help you optimize processes and risk your company’s reputation without proper preparation.
You can make the most of your outsourcing arrangements in various ways. Here are a few ways to achieve optimization and process efficiency through outsourcing in Arizona.
Being Specific About Your Needs
The key to achieving optimization and process efficiency through outsourcing in Arizona is ensuring specificity when setting up your BPO arrangement. Every item you specify and your decision while outsourcing affects your business, positively or negatively.
So see that you list what you expect to receive from outsourcing the business process. You must also determine the specific processes you want to offload and the reasons for doing so.
Vetting Your BPO Company Choices
Once you have a list of your outsourcing requirements, you can search for back-office outsourcing providers. Be sure that they can offer streamlined solutions that are suitable for the needs you listed.
Also, consider their capacity, quality procedures, operational guidelines, turnaround time, and communication process. You should also take your budget into account. Remember that you are outsourcing to achieve process efficiency and optimization, so the right partner is one willing to fit your needs. They will not make you adapt to their service offerings.
Conducting a Trial Run
After narrowing down your choices of BPO companies in Arizona, contact the provider that best suits your business and ask to set up a trial period. A trial period lets you evaluate the BPO company’s overall processes and see how well they fit your organization and workflow.
Do not forget to document the outsourcing vendor’s productivity and their ability to meet your quality expectations and deadlines during the trial period. A trial period also enables you to detect possible issues and develop strategies to mitigate them should you decide to proceed with the provider.
Documenting All Agreements and Arrangements
Proper documentation is another key factor in optimizing and improving process efficiency through outsourcing in Arizona. After identifying the best outsourcing partner for your company, properly document all agreements and arrangements.
Proper documentation ensures that everything you discussed and agreed upon will be included in the contract scope. It also helps specify the division of responsibility and accountability. This way, you can guarantee that you are covered and that the right actions will be taken should disagreements or legal conflicts arise.
Preparing a Transition Plan
Strategic outsourcing is essential for achieving optimization and process efficiency. Migrating from an internal to an external team is tricky, but you can be off to a great start with the proper preparation and planning. Hence, understanding how your BPO partner manages transitions is crucial.
Consider asking the following questions:
- What role will you play in the transition? What can you expect?
- Do they have a tried-and-tested plan for setting up new outsourcing engagements?
- Do you need to help them train the external staff to familiarize them with your company and business processes?
- Will the training be done virtually or in person?
Learning each step and process in the transition will help you ease through the phase smoothly.
Reviewing and Regularly Keeping Track of Performance
The next step to achieving optimization and process efficiency through outsourcing in Arizona is to keep track of the external team’s performance. Gathering data about its performance allows you to assess the current setup and learn how your decision to outsource has affected your operational processes.
Regular performance reviews ensure that the outsourcing vendor is committed to providing high-quality business solutions based on your agreement. Monitoring team performance helps you craft an improvement plan, not only for the external staff but also for your in-house departments.
Establishing Clear Communication Plans
Lastly, establish clear communication lines. Maintaining a harmonious outsourcing partnership with your BPO provider requires clear communication channels and plans.
Assign a point person from your organization and ask how you can get support from the third-party provider when needed. Moreover, consider setting up weekly team meetings to discuss any changes or issues your team and the provider can address and review.
Key Elements of Process Efficiency in Outsourcing
Each company has its own challenges in controlling costs, managing risks, and improving efficiency. These challenges are often too big for internal teams to conquer, and outsourcing is necessary.
Fortunately, technological advancements are transforming the outsourcing industry. For example, BPO companies can automate 70% to 80% of their processes using robotic process automation.
Partnering with an outsourcing firm is more than simply handling a list of tasks. This strategy gives your organization the means to improve process efficiency. Here are different ways outsourcing can improve efficiency:
Enhancing Process Efficiency Wherever Necessary
Determining and acting on both small and big-picture opportunities to minimize costs and time spent managing business processes is often hard for companies. BPO providers with experience developing efficient systems that optimize how people and technology work together can help organizations identify and seize opportunities to reduce process costs and effort.
When you select a provider with industry- or function-specific expertise, it can customize BPO solutions according to your particular needs. For example, a provider can develop an outsourced finance and accounting solution that specifically addresses the financial needs of your nonprofit organization.
Process inefficiencies are also a result of a lack of business process integration. Your BPO provider can help with integrations. Therefore, outsourcing’s return on investment includes streamlined workflows and governance, leading to both time and cost savings for your company.
Ensuring Processes and Systems Continue Without Disruption
Skill gaps make your company more at risk of business disruptions—the ultimate money- and time-eaters. A good thing about outsourcing is that it gives you access to sought-after talent you do not have in-house or cannot afford to hire.
An effective plan for limiting business disruptions and containing costs in such cases includes outsourced IT services, application services, and virtual chief information security officer (CISO) services. The benefit of outsourcing such services is plenty because these are some of the most in-demand roles in short supply.
Allowing Scalability and Cost-effective Agility
Companies that want to stay relevant and competitive must stay up-to-date with industry changes. Change is unavoidable, whether it’s due to new laws, the economy, social developments, or customer behavior.
An external service provider with a large portfolio of services and industry-specific experience can support organizational agility by giving you expanded or new solutions as needed.
For example, many companies turned to BPO vendors during the pandemic to develop apps that would comply with the new safety regulations. Client companies were then able to spin up digital solutions quickly and cost-effectively, improving their efficiency with the help of their BPO partners. Whether it is a contact center as a service (CCaaS) or artificial intelligence (AI), BPO can help.
Leveraging Predictable 24/7 Service
Few small and mid-sized companies can afford to establish and staff round-the-clock positions internally. However, such roles are crucial for companies of all sizes. Outsourcing roles requiring 24/7 service can make them affordable.
BPO can provide digitally delivered services 24/7 and proactive monitoring, which is vital for critical concerns such as application security and availability. Outsourcing and automation also allow functions such as account reconciliations and transaction processing to be completed continuously, if necessary.
Moreover, cyberattacks are a threat regardless of your company’s size. An in-house 24/7 cybersecurity team is prohibitively expensive, but without them, you might fall victim to cyberattacks that cause operational disruptions. A BPO partner can establish a comprehensive solution to protect your company’s systems, whether in the cloud or on a private server.
The Bottom Line
Outsourcing empowers clients to focus on their core competencies while improving performance and driving growth. Capitalizing on the benefits of outsourcing has been a vital strategy for companies aiming to gain an edge in a highly competitive market.
Outsourcing offers businesses a valuable opportunity to use third-party providers’ expertise to augment their performance.
By carefully selecting the right partner, drafting favorable agreements, and starting small, companies can leverage outsourcing to stimulate efficiency, innovation, and growth.