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Six BPO Lessons from IT Outsourcing

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Thursday, September 09, 2010 |

What BPOs can Learn from ITOs

IT outsourcing has developed into a comprehensive field, offering a wide array of services to cater to the different needs of today’s business world. With the growth experienced by this field, Gartner says BPO can learn a thing or two from IT outsourcing. Ian Mariott of Gartner cites six things IT outsourcing can pass on to BPO:

1. Look at BPO from a long-term perspective. Outsourcing has become a worldwide phenomenon that most business owners resort to because of the supposed cost savings that outsourcing provides. While reductions in operational costs are attractive, you should take account of more important factors such as client-provider match and the long-term effects of outsourcing. Before you dive into the waters, Gartner suggests that you take time to assess your outsourcing objectives and consider drafting a long-term plan. This will maximize the advantages you can get out of outsourcing as your offshore team grows with your organization. 
 
2. Communicate requirements clearly. You should always make sure that goals and expectations are crystal clear because miscommunication with your provider in this regard can cause irreversible problems and lost investments. To facilitate better understanding, it will also be helpful to communicate all your concerns including the objectives of your company on a whole.

3. Consider different providers and delivery models. Do not limit your options to the service delivery models that you know or to the local service providers that you think will be more convenient. Take time to research on delivery models, and explore your options with different providers from different parts of the globe. Know that you have plenty of possible routes to take in reaching your desired outcome.

4. Choose deals that are flexible and can respond to the market’s changing demands. The world business environment is rapidly changing and your needs are likely to shift with it. When securing a deal with your provider, check on the duration of the contract and ensure that it allows for flexibility. The article proposes an action plan that can help in this issue: assess your requirements regularly (on a specified time interval) and craft the next steps while accounting for pricing flexibility.

5. Business Process Sourcing Management - Sourcing Management Techniques always reference to the current needs of your existing team, and the factors considered for IT outsourcing should be identified from those of BPO. Identifying these factors will make sure that the sourcing process results to a spot-on solution for your needs. Sourcing management should be made in light of the needs of BPO and Gartner deems it would be helpful to involve all interested parties in the sourcing strategies through the duration of the project to keep interests and goals intact.

6. Build a partnership based on trust. You should consider your service provider not only as a means to cut costs but as a partner in your efforts to maintain and develop your business. A high degree of trust is required in this partnership and keeping your relationship strictly formal can cause problems that will make outsourcing difficult and eventually unmanageable. When seeking to venture into BPO, Gartner says that determining the importance of trust and control factors with all the parties involved - your company, your service provider - would greatly contribute to the success of outsourcing to service providers.

 

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