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

Distance, time zones, culture and language no longer limit where companies of any size have customers, suppliers or service providers in this era of fluid commerce between continents. A key to success – and survival – is finding a reliable and experienced business partner who will perform essential administrative services at a reduced cost. aim No reduced accuracy, speed or safety.

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

As Business Process Outsourcing (BPO) partnerships become more and more common, companies lose their competitive position unless they reduce expenses 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 companies gain competitive advantages, BPO is particularly valuable for small and medium-sized businesses. Specialized skills, technology, and economies of scale allow a partner to deliver services more efficiently and cost-effectively than in-houses.

Outsourced support includes application, order, invoice, and payment processing, 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 taking advantage of the flexibility and innovation that come with BPO arrangements:

Insurance, Financial Services, Health Care, 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.

true partners, No Sellers

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. The supplier must demonstrate a deep understanding of the client’s business at the macro level and micro level. That defines a complete BPO couplerather than simply a service provider out of the box.

Potential customers need to be sure that the provider brings not only outsourcing credentials, but also relevant credentials. Time should not be spent educating a vendor on the details and nuances of the industry.

In addition to vertical industry experienceHigh-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 prospective partner’s business background, familiarity with Western trade, and track record of increasingly sophisticated projects also provide evidence of reliability, initiative, innovation, and compatibility.

The need for scalable and cost-reducing 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.