Overcoming the Key Challenges with BPO
Singapore (3 October 2019)
There are various reasons why an organization might choose to outsource certain aspects of its business functions. Nonetheless, the success of it would require a strategic thought process and plan. Although outsourcing is usually seen as a key strategy for reducing costs, organizations must first identify how it can used as a critical tool for expanding innovation.
Whether an organization is choosing a new BPO provider for the first or fifth time, there are many setbacks that can hinder an organization's choice for embarking on the journey. Many of these risks, however, can be minimized by simply analyzing what your organization's response would be in those situations.
Challenge #1 ‐ Communication and Availability
Communication and availability are often seen as risks or challenges that arise due to language barriers and time zones, particularly when choosing a provider based offshore. When not in sync, these can affect the process delivery and cause unwarranted delays.
It is therefore crucial to ensure you have clear communication channels in place that work well for both your organization and outsourcing provider. Whether the preferred communication may be over the phone, email or conferencing channels, it is important to communicate frequently and honestly. Encourage face-to-face meetings where possible, particularly in difficult situations that cannot be solved via written communication. Watch out for any sign that can cause delay and make follow-up arrangements on how you can rectify them in the future.
Challenge #2 ‐ Innovation
Although there is a pathway provided on what is to be achieved, outsourcing can often be seen as a dead end for innovation, which could result in a lack of control over processes. Even so, it is evident that there may be opportunities to encourage innovation and get the most from your outsourcing arrangements as new realities emerge, including finding the right balance between standardization and customization.
Create a list of what worked in the past and what you want to fix and recover. Ask yourself what your aspirational qualities are for your future outsourcing needs. Develop a hybrid solution where you have opportunities to enable standardized, simplified, off-the-shelf solutions and also work closely with your provider to collaborate on customized solutions that can still add significant value to your organization's goals.
Challenge #3 ‐ Culture Clash
When it comes to culture, both your organization and your provider will have different values and norms in terms of decision making, organizational structure and company values. These will eventually turn into a challenge when both organizations maintain a 'strictly business' relationship that creates strain in the hierarchy or management of the process or project.
Sometimes choosing an organization with the best cultural fit and addressing the corporate culture during the provider selection is the right way to go. Outline the criteria for what you're looking for and make it clear. Compare the values between your organizations and determine if they are aligned. Become familiar with your provider's objectives, approaches and methods for working with organizations.
Challenge #4 ‐ Relationship Management
The most important factor for success in outsourcing is establishing and building a long-term strategic partnership with your provider. It is important to note that when outsourcing certain processes or projects, you must work together, not against each other, particularly as you are both working to deliver the best service and value for your organization.
To establish a good relationship, providers should have good understanding of your needs and have open and transparent engagement. As an organization, you need to be upfront on your expectations, understand the resources and capabilities of your provider, assign the tasks and deadlines, and then enable room for trust. By creating some areas of compromise on both parts, you and your outsourcing provider will be able to build flexibility, become more adaptable to change and maintain a long-term strategic relationship.
The RMA Approach
When these key challenges are analyzed and outsourcing is done right, organizations find themselves exerting more energy into achieving core business objectives, improving their efficiencies and enabling their staff to work on higher value tasks.
RMA's key focus is always on our customers to maintain strong personal relationships and establish Client Relationship Management as a top priority. By doing so, this enables RMA to meet your organization's needs on communication, innovation and culture and provide a business process outsourcing solution that fulfils your organizations goals.
Join RMA Contracts at SSON'S 22nd Asian Shared Services and Outsourcing Week at Marina Bay Sands on 19th ‐ 20th November 2019, where the conference will be addressing the importance of value creation, digital transformation and change management across shared services and business process outsourcing. RMA Contracts will be exhibiting and showcasing the company's capability in leveraging business automation needs in the areas of Managed Services, Digitalization, Transaction and Data Processing, Contact Centre and Manpower Outsourcing together with the organization's best practices to improve operational efficiency.