The Do’s and Don’ts on How to Manage Your BPO Partner

When a company replaces one BPO vendor with a new partner, they expect a dip in performance as the new partner gets up to speed. A sophisticated outsourcer measures the expected trade off in performance over the short term and builds that into their cost-benefit analysis of making the change. However, predicting the success of the ramp period is an exact science. A BPO provider can shorten the ramp time through a solid onboarding strategy reinforced with flawless tactical execution. David O’ Sullivan, a business process expert and co-founder of Chazey Partners, shared tips revolving around the importance of strategic partnerships in launching new BPO relationships in his article, “Strategic Sourcing: 10 Tips on Managing Your BPO Vendor“. Read O’ Sullivan’s piece for more information, but here’s a bird’s eye view:

  1. Don’t fall at the starting gate. Focus on a win-win situation in contracting.
  2. Don’t choose BPO because it’s easier. Your customer cares most about seamless delivery and excellence.
  3. Assign process ownership. Assigning responsibility to the BPO without entrusting it with ownerships leads to disappointment.
  4. Embed innovation in your contract. Innovation requires investment.
  5. Don’t derail from your process. Know what you want and methodically prepare. Follow a process to ensure hidden costs don’t derail your outsourcing.
  6. Understand what you are buying. Know the difference between “strategic sourcing” and “tactical procurement”.
  7. Strategy & Relationship. A BPO partner can leverage their process and functional expertise to support your corporate objectives.
  8. Project Management. Scope and consolidate your plan for a larger span of activities.
  9. Operational Effectiveness. Develop a structure that maintains and updates policies and provides for ongoing refreshers and training.
  10. Governance. A governance council includes representatives from operations, senior management and support functions.

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