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Small businesses and large corporations alike sometimes need a little help. Business process outsourcing (BPO) comes to save the day.
With outsourcing, companies can delegate their front- and back-end functions to free up in-house staff for core activities. However, getting the most out of your BPO business partnership requires a clear understanding of what it is and its best practices.
This article explores how to get BPO to work for your business and the different ways to streamline your outsourcing initiative.
Strategies to ensure BPO success
Before we get to our list, let’s define BPO and its objectives. BPO gives companies more flexibility by offering tailored outsourcing services to manage certain areas of their operations. It aims to help clients save money and grow their businesses without worrying about time-consuming day-to-day tasks.
Common BPO services include call centers, customer service, lead generation, telesales, and billing. BPO is a beneficial strategy for companies of any size all around the world. Businesses across various industries outsource different functions, driving the BPO sector’s continued growth.
Businesses will continue to look for any edge that can push them ahead of the competition as new and innovative services are developed. Partnering with BPO companies is guaranteed to streamline your business’s functionality and take it to the next level.
Now that you know what BPO is, we should discuss how to get BPO to work and the strategies you can use to ensure success.
Assessing your business needs and defining objectives
Before you start a partnership with a BPO firm, you must first know the goals you want to achieve from the initiative. Clear objectives can help you determine and outline the responsibilities you want to share with the BPO company you wish to sign with. They can also help you clarify your expectations for the third-party partner.
This, in turn, helps outsourcing management companies set the right targets and develop strategies to meet them. Consider the common objectives for outsourcing:
- To reduce labor costs and operating expenses. According to Deloitte, 57% of companies outsource to save on costs.
- To focus on core services and products. Outsourcing lets you delegate non-core tasks and gives you more time to focus on core competencies.
- To enhance the customer experience. BPO companies train agents to be well-versed in customer service and tech support to ensure end customers always have a pleasant experience.
- To augment staff. BPO makes staffing scalable, letting you access external workers to help your in-house team when needed.
Finding the right BPO partner
Another tip on how to get BPO to work for your business is to find the right service provider to serve as an extension of your company. The third-party partner will have access to some of your organization’s sensitive data and lend a hand in running your business. Therefore, you must be wise when choosing a partner.
Choosing the top BPO vendors can be tempting, but you must find one that fits your needs. Here are some qualities to consider when finding an outsourcing provider:
- Data security and confidentiality. The worldwide average data breach cost was $4.45 million in 2023, a 15% increase over three years. Ask for potential providers’ security protocols and how they plan to gather, store, and back up your data.
- Experience and knowledge of processes. Pick a BPO firm with certification in specific functions. For example, if you need to outsource customer service, your chosen provider must have a list of agents with relevant experience in your industry.
- Capability to handle multiple business processes. The functions you need help with will change as your company grows, so find a partner that can handle different business areas and scale quickly.
- Collaboration with clients. When you outsource front-end functions, your partner will represent your company. Hence, they should work closely with you to offer positive experiences.
- Dedicated staff. The service provider should build a dedicated team of workers specific to your goals and provide them with relevant training.
- Transition protocols. Business partnerships and processes inevitably change. So, find a BPO firm to certify a smooth transition when you need to restructure.
Monitoring performance and quality
Numbers do not lie, so performance tracking and quality management are crucial to determining whether your outsourcing relationship works. One way to do this is to establish key performance indicators (KPIs) to measure the third-party team’s productivity and effectiveness.
Before completing a BPO service-level agreement (SLA), include the performance metrics you will use. However, one thing to note is that KPIs differ depending on the outsourced function. Examples of KPIs for outsourced call centers and customer service include:
- Average handle time (AHT)
- First contact resolution (FCR)
- First response time (FRT)
- Call quality
- Call abandonment
- Customer satisfaction (CSAT)
- Customer effort score (CES)
- Net promoter score (NPS)
Managing and nurturing the BPO partnership
The last step to remember when figuring out how to get BPO to work is to build a good relationship with your service provider and nurture the partnership. Finding a good BPO organization is only the first step. To fully reap the benefits, you must be hands-on in managing the partnership.
One way to do this is to communicate your needs and requirements in detail. Regularly catch up with your account manager to discuss your requirements and preferences and ask about the pain points they must address. Also, consider asking them about the approach they think is best to help you achieve your business goals.
Providing regular feedback is also necessary for growth. Feedback can be in the form of commending your team or pointing out areas for improvement. Either way, let your BPO provider know how well they are doing to foster a good partnership.
The bottom line
While outsourcing is an excellent solution to your growing backlogs and high operating costs, developing a good strategy allows you to fully reap the benefits of this business initiative.
It is crucial to understand how to get BPO to work for you and its role in achieving success. The strategies presented above will help you get started successfully.
Let’s connect to start outsourcing. Unity Communications is here to help.
