Avoid These Mistakes When Utilizing Business Process Outsourcing Servicesby Managed Outsource Managed Outsource Solutions
The present business world is highly competitive and many businesses are gaining a competitive edge by optimizing work efficiency, cutting down operational costs and providing optimum customer service. But it may be difficult for a business to improve sales in a short period of time and gain maximum profit. Many companies often get burned out by the amount of work they have to deal with every day. This is when back office outsourcing and other BPO services become useful. Outsourcing ensures businesses more flexibility and allows them to focus more on core activities. Any industry sector – Logistics and Supply Chain; Healthcare; Legal; Media; Insurance; Real Estate; Education; Telecommunication – can benefit from responsible outsourcing. However, to succeed in outsourcing there are some mistakes that should be necessarily avoided:
- Not researching thoroughly before finalizing: If you choose to outsource, you may be outsourcing a part of your project or sometimes a complete project to a third party vendor. Before outsourcing your projects make sure to thoroughly research the vendor. Most of the companies ask for quotes or share ideas about what they want. It is always important to have a thorough knowledge about the vendor’s experience or else you may face loss in the long run. For example, suppose you want to outsource your freight invoice processing. You want to work with an outsourcing provider that can provide you with the service of invoice processing experts who can analyze the invoices and extract all the necessary information. They should offer professional data entry into a database according to your requirement. Most importantly, they should ensure foolproof quality assurance procedures such as double entry and verification. If you don’t check out whether all these requirements can be met by the outsourcing firm, you will end up with poor quality output and other hassles. To ensure successful outsourcing, conduct a thorough market research; understand the firms you have shortlisted, ask for recommendations and follow a process before signing them up.
- Choosing the lowest bid: Choosing a vendor based on the lowest bid is one of the most common reasons for outsourcing failure. Most of the companies follow a strict budget and no overflow policy but that doesn’t mean that you can go for the lowest bid. You must understand that the quality of service you expect cannot be obtained at very cheap prices, and in the long run you may end up paying almost double the amount. So, sign the outsourcing contract only after deciding the milestones for the project and the payment.
- No proper communications before signing up: Communication is an important criterion for any business and in the case of outsourcing it is important to have a clear understanding about what you want and what your outsourcing partner can provide. Regular communication helps to prevent any kind of confusion and also get quick responses at any time. If an agency does not communicate with you regularly, then you should not work with such firms. Regular communication helps you know your vendor and how they deal with different situations and most importantly it gives you an idea about what to expect from them. If you are convinced about their efficiency and reliability, then you can move forward with them.
- Not arranging a kick-off meeting: An initial introductory meeting is often ignored by many companies but it is actually a good idea. Both parties can be brought together to clarify the scope of the project, requirements from both sides can be clearly laid out, and the collaboration can be made effective. Ignoring a kick-off meeting could lead to many problems. The scope and requirements of the project could remain undefined or unclear and the outcome would consequently be delayed or slow. Needless to say, meeting the outsourcing company’s important members and outlining the project details to them is most important.
- Not checking the outsourcing company’s portfolio: Researching the vendor alone is not enough; checking their portfolio is one of the most important things to do before hiring them. It helps you to know more about their expertise and their experience. You will also get a clear idea about how they deal with a project and how they introduce features and functionalities. Ask for their past work and talk with their previous clients to get a better picture.
Avoiding the above mistakes will help you work with the best back office outsourcing company and enjoy the accompanying benefits. For any process that is outsourced, you can benefit from increased efficiency in completing the process, as compared to internal implementation. Other advantages include outstanding accuracy in output through excellent quality management standards, and excellent resource cost savings.
Created on Sep 16th 2018 21:59. Viewed 591 times.
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