Outcome Driven BPO

Today, experienced buyers of BPO expect significantly more from their BPO provider and are far savvier when it comes to evaluating potential providers. A paradigm shift in the provision and pricing of BPO services has occurred, where buyers demand and expect greater value for their outsourcing dollar.

The ‘lift and shift’ approach based on head count contracts and pricing models has given way to more sophisticated models where price is determined by results. Buyers no longer want to move a chunk of their back office somewhere. As well as reducing costs they expect their providers to deliver improved business performance.

We are seeing organizations move beyond outsourcing transactional processes to outsourcing complex, high-end processes that have a higher impact and thus positively impact the bottom-line and create shareholder value faster. It’s more about driving innovation and creating value rather than reducing costs.

More and more outsourcing projects are incorporating change and business process management principles. This shift in expectations means new models for pricing and contracts, where providers who fail to adapt will lose business. More and more organizations are turning to outcome-driven contracting to accomplish the same general mission: aligning the goals of the outsourcing provider with the goals of the contracting organization. Enabled by new real-time analytics and data mining capabilities outsourcing firms are able to provide new, innovative options in outcome-driven contracting.

In earlier outsourcing models contracts were built around Service Level Agreement (SLA) and stipulated headcounts to perform certain functions for certain costs. In the past providers were rewarded on their efforts to reduce cost. Clients were not terribly concerned with the internal operations of the BPO provider as long as they met their contractual arrangements.

Current buyers now expect operational transparency. Today it’s not about cost. Buyers want value from more complex transactions. Technology and platforms are driving the next generation of BPO, making it possible to outsource and transform a complete process from end-to-end.

They want to know how the provider is matching the headcount to the workload. They want to understand how much productivity and innovation the BPO provider can deliver. It means that providers are rewarded based on their capability to transform business processes and deliver results. Instead of buying service by the time slice or the number of transactions handled, clients buy service by the organizational outcome.

Now, the time is ripe for a shift in thinking from the traditional to the innovative; from output to outcome. Customers are increasingly becoming aware of the fact that they are not getting what they really want. Clients need to become ‘smarter customers’ in terms of understanding what benefits and transformation outsourcing can deliver. Related to this is the need for both sides to understand the behaviour and expectations of each other.

If your business is contemplating on outsourcing your products and services to an Outcome-Driven BPO, June Spring Contact Solutions can provide superior results in an all-inclusive spectrum of business process outsourcing services such as finance and accounting, customer care, technology solutions, research and analytics and sales and collection operations. For more information, you may contact us at 408 600 2621 for USA and 08 6102 5588 for Australia or email at june@junespringcontactsolutions.com.

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