A new study by Accenture looked at the pros and cons of business process outsourcing. It found that the companies that were the most successful and had the best results from outsourcing were the ones that used it as a way to improve their business and improve their clients’ business performance rather than just to reduce costs.
Only 20 percent of those surveyed—who bought BPO services such as finance and accounting, procurement or human resources—succeeded in creating greater business value from their BPO relationships.
These “high performers” were successful because they implemented management best practices.
To successfully outsource business functions, so you can spend your time and money growing your core business, Accenture recommends that owners and business managers implement these eight management behaviors and practices:
- Consider the entire end-to-end business process. This includes elements managed within the client’s enterprise, those run by third parties and related processes that may impact overall performance.
- Work collaboratively. Consider your BPO provider to be a strategic partner.
- Make change management a priority. High performers execute carefully planned change programs to manage the effects of change during transition and beyond.
- Focus on benefits beyond cost reduction. Does outsourcing allow you to focus on your passion and grow your business? Cost should not be the prime motivator of outsourcing.
- Target strategic business outcomes. High performers aim for specific strategic outcomes—not just more efficient transactions–that can be measured, such as helping clients increase revenues.
- Leverage domain expertise and analytics. Clients look to their providers’ deep industry knowledge and ability to analyze data to more predictably drive business outcomes.
- Align the retained organization with the outsourced processes. High performers place as much importance on the client’s internal transformation as they place on transforming the outsourced processes.
- Use technology as an enabler. In high-performance BPO relationships, technology is a source of innovation and advantage, not just the infrastructure of delivery.
We build solid relationships with our clients and believe that the better we know them and their businesses, the better we can help them reach their goals.
Technology is such a huge part of what we do. Harnessing cloud technology not only saves companies money, but gives them the flexibility to manage their back-end administrative functions from anywhere and from any device. The best part about outsourcing non-core business functions is that it allows business owners to spend more time making or selling products or brainstorming new ideas rather than sitting in their basement with a calculator, trying to figure out why they have to crunch numbers instead of doing what they love.