Greater than the sum of the parts
BPO has tremendous potential to add significant value across the organization. The key is making the proper assessments, analysing the right data, finding the right application and partnering with the right provider.
In its infancy, BPO primarily focused on non-core business processes such as, order processing, fulfilment, payroll, and employee benefits and some facilities activities like lawn care and security. Recently however this has since grown to cover functions which are important (even essential) to a company's operations, but not necessarily seen as being core to a company business strategy. Marketing Production, Travel, Information Technology and Facilities Management are a few examples of such areas.
By partnering with business process outsource (BPO) service providers it is possible to adopt solutions that are constructed of highly specialized industry expertise and evolve over the duration of the relationship to improve the entire organizational operation.
By adopting a BPO approach to important, but non-core, functions an organization can gain added insight into many areas of their business. The right relationships in place ensure custom tailored solutions tailored to precise business needs, adding considerable value beyond simply cost reduction. It has been shown that just 10% of organizations describe cost-cutting as the primary role that their BPO provider plays, ranking access to specialist skills and expertise (72%) and growth and expansion potential (66%) far higher(1). The focus here is really to extract the greatest amount of process enhancements, and place less emphasis on immediate direct cost savings as a priority. This is not to be achieved, however, without an adherence to well defined Key Performance Indicators and Standard Operating Procedures. Business process improvements that impact the entire organization can be achieved through effective collaboration with high quality BPO partners. As a result, areas that were once seen as "mundane" or "non-core" can now be supported with a high level of innovation that mirrors the industry leaders in these areas. Additionally, the entire process sees improvement as a result, and decision making can incorporate higher performance levels in these areas. This will also allow company employees to devote more time towards activities that are considered core to the business.
Thus we can see that BPO has tremendous potential to add significant value across the organization. The key is making the proper assessments, analysing the right data, finding the right application and partnering with the right provider. With the right due diligence and the proper alignment of resources, the whole can be greater than the sum of the parts.
(1) Computer Weekly -Cost cutting primary driver in only 10% of BPO deals - By Karl Flinders on October 31, 2012