Efficient, cost-effective, and comprehensive outsourcing to boost profits and reduce risk.
Outsourcing can be highly beneficial, and in some cases, critical, in realizing the full potential of new digital technologies and capabilities. Some companies may choose to outsource to buy time to develop their own skills and abilities.
In contrast, smaller companies may outsource to leverage the capabilities of new suppliers and their vast data sets, gaining insights that were previously only available to the largest companies.
A report by global market research firm Technavio notes that
“beneficial aspects of BPO services are driving the business process outsourcing market growth …” at an expected “…CAGR [compound annual growth rate] of over 7%”
between 2020 and 2024. The report summary further notes that “the business process outsourcing market size has the potential to grow by US$76.90 billion during 2020–2024” and that its market growth momentum could accelerate.
BPO is the cornerstone in the creation of shareholder value in businesses. It’s an excellent way to offload ‘non-core’ business processes so that organizations can pay more attention to strategic, differentiating activities.
But many businesses struggle with optimizing the use, integration, and governance of outsourced services.
The market for outsourced services is ever-changing, with new entrants and mergers and acquisitions constantly reshaping the landscape.
Furthermore, the COVID-19 pandemic has accelerated the trend toward the normalization of remote work, allowing many organizations to overcome a common objection to outsourced services and pave the way for even greater adoption.
Business Process Outsourcing has been standard practice for a decade. While it was previously done for entry-level jobs or one-off projects, larger-scale business operations are now expanding the BPO landscape.
Selecting providers or contracting for outsourcing services (like IT or Business Process Services), can seem similar to the standard selection and contracting activities traditionally done by an organization’s procurement team.
However, outsourcing deals are expensive and complex, so it’s essential to understand the specific nuances and best practices associated with outsourcing arrangements.
This will help ensure that business needs are met without any added risk.
UniAspect Digital’s Business Process Optimization and Outsourcing Advisory can help you with existing underperforming outsourcing relationships by remediation or optimization instead of you going through the cycle of selecting a new provider.
We have exhaustive experience across the full range of outsourcing models that help our clients understand and resolve their issues quickly.
We not only help you facilitate your back-office functions but also improve performance and profitability – allowing you to focus on your core business issues.
We categorize your outsourcing processes into two categories. In our experience, the success of your outsourcing process will depend upon the category in which your business will fall:
If you are considering outsourcing for the first time, our Advisory experts sit with you to consider the following aspects:
We consider your reasons for outsourcing and the problems you are looking to solve with it. Our experts design a plausible strategy where we match you with a supplier whose capabilities will be better to ‘rent’ rather than acquire via other means or replicate internally.
Once we have a strategy, we look at the documentation and cost comparison. Our BPO Advisory experts look at the related paperwork for the outsourcing process.
We consider the resources that perform the work today and what that costs you. We also assess the impact of outsourcing on your current workforce.
For effective outsourcing deals, identify what goals you hope to achieve with the project. We measure your risk tolerance to embrace third parties owning “how” processes are performed.
One of the main advantages of working with UniAspect Digital is that our BPO Advisory has the business acumen to take care of all your outsourcing needs. We have a transition plan ready for you before contract execution.
Once the transition to an outsourcing provider is complete, we draw guidelines to manage the relationship on an ongoing basis with a robust supplier management program.
The first step to revamping an existing outsourcing deal is to make a comprehensive performance audit. Our BPO Advisors independently analyze both supplier and client contributions.
We look if data and documented requirements are available to evaluate performance. We ponder over what change is deriving dissatisfaction – is there a change in supplier’s delivery or client’s requirements?
We sit with you to analyze the feedback process on the service provided and if there were any consequences for poor performance.
Most outsourcing deals fail because there is a big gap between how services were conceived at the time of contracting versus how they are actually consumed in practice.
We investigate to see if the contract can be negotiated or modified to ensure compliance with the terms of the agreement.
It is usually not just the supplier’s fault when there are problems with an outsourcing relationship. More often, mutual failure in governance causes poor performance.
We analyze the communication channels between the supplier and the organization. How the issues are resolved and what measures are taken to minimize future failures.
Supplier Merger/ Diversification
There are different ways to contract complex, interdependent services. You can have a single supplier who provides multiple services or use different “point solutions” from different suppliers. Changing how work is allocated and managed is often a key part of fixing bad relationships with suppliers.
Effective outsourcing requires extensive industry knowledge and constant management. The process and value will differ based on where a company is in its journey of outsourcing.
UniAspect Digital has the experience, relationships, and tools to help with your business needs. Contact Us today to resolve your outsourcing needs.
We include this offering in our business model because we believe that the clients require validation when it comes to creating and executing strategies to drive the digital revolution
The ultimate goal of performing a Value Chain Analysis is to drive efficiencies and to create more cost-effective solutions for each segment leading to the after-sales efforts.
If your business is facing organizational challenges, operating solely by old ways of thinking is a recipe for disaster.