Business Process Outsourcing – Essential Elements to Look for in Service Provider Proposals

Distance, time zones, culture and language no longer limit where businesses of any size have customers, suppliers or service providers in this era of seamless trade across continents. A key to success – and survival – is finding a trusted, experienced business partner who performs essential back-office services at a reduced cost. objective not Reduced accuracy, speed, or safety.

Global economic changes and technological advances make vital for companies in a wide range of industries to examine the benefits of transferring specific business processes to a knowledgeable, responsive vendor who redesigns and executes functions to each customer’s standards at a guaranteed cost.

As Business Process Outsourcing (BPO) partnerships become more common, companies lose their competitive edge unless they cut costs by allowing domestic or foreign specialists to manage routine support functions.

motivations for action

BPO solutions allow organizations to focus on core business operations, improve quality, increase customer response time and reduce capital investment. Instead of using staff, IT resources, and office equipment for administrative work, assets can be redirected to the core mission.

While all categories of businesses gain competitive advantage, BPO is particularly valuable for medium and small businesses. Specialized skills, technology, and economies of scale allow a partner to deliver services more efficiently and cost-effectively than in-house partners.

Outsourced support includes the processing of requests, orders, invoices, and payments, as well as these functions:

• credit transactions
• Collection
• Verification and adjudication of claims
• Responses to customer inquiries
• Management of payroll and benefits for employees
• Policy renewals
• Preparation and management of documents.
• explanation of benefits
• market research
• electronic record storage
• mail room services
• Creation and management of databases.

Some companies also convert documents by digitizing, scanning, or microfilming. Critical records can be stored in secure Internet repository “vaults” for authorized access, and electronic records can be reformatted.

Companies that benefit the most

These industries are particularly well suited to take advantage of the flexibility and innovation that come with BPO deals:

Insurance, Financial Services, Healthcare, Legal, Pharmaceutical, Utilities, Manufacturing, Catalog Sales, Direct Mail Marketing, Transportation/Logistics, Publishing, and Government Services.

Successful BPO partnerships require a solution provider with industry experience and critical insights that exceed client needs. This allows both parties to seamlessly exchange information, anticipate each other’s requirements, and coordinate workflow efficiently. Suppliers must be intimately familiar with industry standards, regulatory compliance, and terms of reference.

Ideally, an insightful provider will add value by suggesting innovative approaches to meet needs without increasing response time, cost, or internal actions.

real partners, Do not vendors

Whether located onshore or offshore, outsourced service providers must also “speak the same language” in terms of business processes, industry dynamics, quality certifications and competitive pressures. Provider must demonstrate a deep understanding of the client’s business at a macro level Y micro level. That defines a complete BPO buddyrather than just an out-of-the-box service provider.

Potential clients should be assured that the provider brings not only outsourcing credentials, but also relevant credentials. No time should be spent educating a supplier on the details and nuances of the industry.

In addition to experience in vertical industrieshigh-quality BPO providers have:

• Experienced and trained full-time staff working 24 hours a day
• Multi-level accuracy guarantees, such as double-key data entry
• Strict quality assurance procedures with manual reviews.
• Proven precautions to ensure electronic and physical security
• Independent certifications and performance evaluations

Those are basic guidelines for evaluating BPO proposals. A potential partner’s business background, familiarity with Western commerce, and track record of increasingly sophisticated projects also provide evidence of trustworthiness, initiative, innovation, and compatibility.

The need for cost-reducing, scalable services remains urgent in virtually every industry as businesses position themselves for post-recession growth. Reliable and responsive outsourcing providers are long-term strategic allies.