Thursday, May 16, 2019

How to successfully implement business process outsourcing (BPO)?

As outsourcing becomes an integral part of the company's business strategy, especially during the economic downturn, BPO [Business Process Outsourcing] has become an important driving force for IT support services. In recent years, it has evolved from considering limited peripheral activities to including very critical business activities that contribute to strategic advantage.

While traditionally reducing costs is a key driver of all outsourcing activities, other drivers such as speed of development, flexibility, expertise and political manipulation are equally important, if not more.

To successfully implement business process outsourcing [BPO], you must first research and determine if outsourcing should be done - at this stage you must have a preliminary understanding of the expected size and nature of the transaction. This phase is called the evaluation phase because the parties involved try to establish the expectations of high-level stakeholders at this stage. At the end of this phase, the earthquake holder should identify the expected benefits, costs and risks of potential participation.

Next is the preparation phase, which includes the supplier selection process. Organizations typically launch RFP [Request for Proposal] documents to find suitable outsourcing partners. The basic elements of all other phases are defined and agreed at this stage.

The evaluation phase is the third phase of the outsourcing lifecycle, which focuses on a structured and comprehensive assessment of proposals received from suppliers. At the end of this phase, you should be able to negotiate with the selected supplier.

This phase paves the way for the submission phase, which is basically the pre-contract phase. When the transaction design is finalized and a transition plan is developed at this stage, the submission phase is by far the most resource-intensive and commercially critical phase.

Next is the fifth phase, the conversion and conversion phase. At this stage, a strong transition plan was implemented. In addition, the reporting mechanism is also welcome at this stage of the outsourcing life cycle.

The next optimization phase focuses on effectively managing supplier relationships, tracking supplier fees and monitoring contractual obligations based on the original proposal. In principle, this phase is an ongoing phase until the contract is renewed, renegotiated or withdrawn.

If implemented properly, outsourcing contracts may bring incentives to the organization. It's no wonder that BPO is seen as a disruptive force that has a huge impact on the cost structure of almost all industries, which is why organizations ignore it. The hype around BPO will soon fade, but it comes with its commercial advantage, because it can make many companies successful.




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