How to Succeed in Business Process Outsourcing (BPO)?

If outsourcing is an indispensable part of corporate business strategy, especially during the economic recession, BPO (Business Process Outsourcing) has become a key factor in IT-enabled services. In very recent years, progress has been made to be considered for the limited peripheral activities include highly critical business activities that contribute to the strategic advantage.

While traditional cost reduction has been the main driver of outsourcing activities, other drivers, such as development speed, flexibility, expert skills and political maneuvering are equally important, if not more.

To succeed in business process outsourcing (BPO), you must first investigate and determine whether outsourcing should take place at all - a first look at the expected size and nature of the operation is a necessity at this stage. This phase is known as the evaluation phase as the parties try to establish high expectations of stakeholders at this stage. At the end of this phase, the parties involved should be clear about the benefits, costs and risks associated with possible participation.
Next comes the preparation phase in which the vendor selection process. More often than not, organizations deploy RFP (Request for Proposal) documents to find the right outsourcing partner. Basic elements of all the other stages will be defined and agreed at this stage.

Evaluate stage is the third stage of the life cycle of outsourcing and focuses on a structured and comprehensive evaluation of the proposals received from suppliers. At the end of this phase, you should be able to negotiate with the selected suppliers.
This phase paves the way for the Commit phase is essentially the pre-contract. The confirmation phase is by far the most commercially crucial stage plan when the project is completed according intensive resources and transition and developed at this stage.

In this phase, robust transition plan is executed. In addition, a reporting mechanism also put in place at this stage of the life cycle outsourcing.
Optimize phase following focuses on managing relationships with suppliers efficiently, keeping your provider charges against the initial proposal and monitoring of contractual obligations. Basically, this step is continued until the contract is renewed, revised or abandoned.

When done properly, it is likely that outsourcing contracts are enormous benefits to organizations. It is not surprising that BPO is seen as a disruptive force that has a huge impact on the cost structure of almost any industry and that is why it is not easy for organizations to ignore. The publicity surrounding BPO may soon disappear, but the business benefits that come with it are here to say, because it allows many companies to succeed.