Creating Business Process Outsourcing
(BPO)(Onshore and Offshore)

 

Outsourcing of a firms business processes can be of substantial benefit but ony if implemented with the appropriate approaches. Business Process Outsourcing should be approached judiciously as there can be potentially destructive effects if incorrectly managed.

The points below have been left in point form due to the sheer volume of information, one of our team will be pleased to assist you with them.

Understanding Outsourcing

• Defining offshore & onshore,
• The concept of outsourcing,
  • Removal of tasks from onsite workforce,
  • Access to advantages of economies of scale,
  • Defined costing,
  • Lower management effort - possibly but not always,
• Requires a well structured and defined approach,
• Extremely useful if approached correctly but can cause issues if improperly approached

Understanding Human Capital vs. Expert Service Providers

• Generally two types of outsourcers,
• Human Capital,
  • Provide human capital / personnel,
  • Provide physical space for personnel,
  • Client provides work methodology,
  • Client provides training,
• Expert Service Providers
  • Provide personnel,
  • May provide physical space or be onsite,
  • Provide work methodologies more efficient than internal ones,
  • Access to their improved methodologies the factor for selection,
  • Maintain knowledge base of their staff independently not training required

Selecting Work For Outsourcing

• Types of work can vary,
• Characteristics,
  • Standardized workflows and tasks,
  • Easily portable work,
  • Access toor moving work to outsourcers relatively simple to implement,
  • Where difficult and costly the payback is stiill sufficient,
• Payback analysis verifies conceptual framework,
• No degradation of firm knowledgebase or long term intellectual property(IP),
• Exit caluase and reclaiming workflow considerations

Standardizing Work For Completion

• Standardizing the work for simplified completion,
• Defining outputs for defined inputs,
• Communicating standards,
• Managing expectations

Creating Access To The Work

• Accessing information or work flow components,
  • Geographic,
  • Separate Companies,
• Technology considerations,
• Security considerations

Moving The Work To The Outsourcer

• Moving information or work flow components,
  • Geographic,
  • Separate Companies,
• Technology considerations,
• Security considerations

Initializing The Outsourcing Relationship

• Design, the outsourcing relationship,
• Documentation,
  • All requirements,
  • Work methods,
  • Escalations & exceptions,
  • Service level agreements,
• Training
  • On site delivery of training - not to be taken lightly,
    • Training,
    • Practice,
    • Reinforcement

Monitoring & Ongoing Support

• Establishing a regular review schedule,
• Tracking defects and remediation,
• Updating documentation,
• Training updates as required

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Constant Improvement Group

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