01First Phase: BPO-Strategy Analysis and Education
Preparing and implementing a BPO strategy can take as long as six months, depending on the scope of the project. No two deals are exactly alike. However, the basic steps are the same.
- Analyze direct and indirect costs and processes, including subprocesses and projected investments.
- Educate yourself on governance and relationship management requirements, retained processes and organization, internal improvement opportunities, and the request for information (RFI) process
- As part of your sourcing strategy, consider single versus multiple providers, sole source versus competitive bids, and gather intelligence about prospective providers.
02Second Step: RFP Development and Pricing
- State the work requirements, for example, key processes, finance, HR, or IT.
- Define current and targeted service levels.
- Perform a financial analysis of economic and productivity factors.
- Develop the business case, including costs savings and tangible and intangible process improvements.
- Choose a pricing model, for example, fixed versus variable or output-based pricing.
- Determine governance, service level agreement, and relationship management plans.
03Third Step: Bid Evaluation and Negotiation
- Distribute RFP to qualified BPO providers based on the business strategy.
- Visit with providers and rank them. Based on your analysis determine a short list of choices.
- Begin preliminary negotiations.
- Check references and conduct three to five detailed customer site visits.
- Negotiate contract, service levels, and legal framework.
- Create a governance and BPO program management office
Once these three steps are done, it is time to begin transition planning.
The transition is a key to a successful program. Many firms can produce the Business Case the execution of the Business Case is the key to realizing the value to the decision. Transition encompasses three elements, Financial – Technical – Organization Change. We find that the people-oriented element Organizational Change is the one that is given the least attention and is often the differentiator in achieving the success of the Business Case. A sound Transition methodology stresses this element. A transition Methodology is illustrated in the diagram below:
053 Phases of Transition
We engage our clients on a higher plane for strategic insight and efficient implementation. Such intensity is a common thread through the Pre-Migration Migration and Post-Migration phases of the project.
In the Pre-migration stage, a rigorous assessment of Process, people, Technology Infrastructure and management is undertaken to chalk out the road map in an outsourced environment
At the Migration Phase stage, the above activity is taken to the next level to facilitate synchronicity between client and BPO from an operational perspective
At the Post-Migration stage, processes are migrated to the core operations team is accountable for stability and process enhancement. A rigorous monitoring framework is used to ensure transparency of operations to the client.