BPOs to Revamp Management Practices
Small and mid-sized companies are increasingly failing to realize the complete value of business process outsourcing (BPO) on account of deficient management behaviors and practices. At least this is what a recent report from IT services and research firm Accenture reveals.
The report shows a relatively small number of mid-sized BPO buyers have succeeded in achieving greater business value from their own business network than the majority and can be categorized as ‘high performers’. The report also refers to 8 best-in-class practices that are strongly interrelated to high performing engagements. By implementing these practices, buyers can realize greater business value than ‘typical’ BPO engagements offer.
These 8 core management behaviors and practices include the following:
1. A holistic approach to BPO management: High performers view the end-to-end business process in totality. This includes elements managed within the client’s enterprise, those operated by third parties as well as the related processes that may affect the overall performance.
2. Collaborative approach to governance: Shared BPO governance is not just a set of committees or a schedule of meetings. It also includes the attitude toward the relationship and behaviors that fortify it.
3. Change management – a priority: High performers implement carefully planned change programs to handle the effects of change during transition and beyond.
4. Seeing benefits beyond cost reduction: Both the client and the provider are interested in benefits beyond cost. Cost reduction is important but is not the primary motivating factor.
5. Focusing on strategic business outcomes: High performers strive for specific strategic outcomes that can be measured, such as helping clients hike revenues.
6. Using domain expertise and analytics: Clients depend on their providers’ deep industry knowledge and ability to evaluate data to more predictably guide business outcomes.
7. Aligning in-house strategies with outsourced processes: High performers attach equal importance to both the client’s internal transformation and that of the outsourced processes.
8. Leveraging technology as a key enabler: In high performance BPO relationships, technology is the root of both innovation and advantage.
The findings also showed that nearly 85% of high performing BPO engagements look upon the service provider as a strategic partner. In 75% of high performance BPO engagements, senior leaders from both parties devote time to understand each other’s objectives and strategies. 90% of the high performers reported that the client and provider were able to productively sort out differences.