Common BPO mistakes

The term BPO is often confused with the term Call Center. BPO is the process of hiring another company to handle business activities ranging from data processing, back office support, recruitment, payroll, sales, customer service or technical support and telemarketing. A Call Center, on the other hand, is a form of BPO that deals with inbound and outbound calls providing sales, customer service or technical support, telemarketing, and phone surveys for their clients. In short, all call centers are BPO’s but not all BPO‘s are call centers.

It is true that there are several benefits while outsourcing but it is only fruitful when proper risk management is done at early stages which many businesses tend to forget. The outsourcing risk management strategies can be as such:
1. Define clear objectives
Businesses should clearly define its objectives and measurable goals. They should state the reasons for outsourcing and provide a framework for decision making.
2. Set realistic expectations
Business should make sure that the goals and objectives set are realistic. A cautious, realistic set of expectations ensures continued support for your outsourcing strategy.
3. Count the cost– The realistic expectations set will reflect on the related cost. With the pressure to cut cost, management tends to underestimate the cost involved. These are the hidden costs :

Vendor selection
Transition
Attrition
Cultural difference
Ramping up.

4. Communication
Internal and external communication should be encouraged such as escalation processes, regularly scheduled meetings, review periods, and employee communication.
5. Evaluate Constraints and Opportunities
Consider all types of constraints and opportunities, including business forces, overall economic cycles, disruptive technologies, regulatory environment and compliance requirements and internal organizational issues. Build sourcing risk profiles and apply a risk management framework.
6. Objectively measure and track the benefits
BPO need to be able to identify and maximize best practices while you take corrective action to optimize offshore benefits and limit liability for long-term results.

Your businesses have talent. We have resources to help you express yourself. Techmode Outsourcing’s personalized services will help you make a transition, develop your projects, extend further, progress and meet objectives. Let us study together your ideas, your development, transition and restructuring projects.

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