Essential Guide to Business Process Outsourcing
Business Process Outsourcing is one of the most common types of outsourcing, in which the organization contracts out a specific business process to a third party service provider. The process may or may not be core to the business.
Phase 1: Needs assessment
In the first place, it is necessary to know globally the operation of the company and of all the processes that are being carried out internally, as well as its cost and degree of effectiveness-efficiency, with respect to the objectives set. At this point, it is very important to establish a model that allows us to measure productivity since it will help us evaluate the levels of performance that each provider can provide.
Phase 2: Adoption of an appropriate method
Once the services to be outsourced have been chosen, they should be classified according to the type of process (if it is an activity directly related to the business object or secondary activities) in order to adopt an adequate methodology that allows outsourcing to be properly managed.
Phase 3: Service level agreements
A key point in outsourcing is the establishment of service level agreements (SLAs) that allow continuous monitoring of outsourced services. These agreements are negotiated with the suppliers, collecting the parameters in the contract and allowing regulating the provision of the service.
Phase 4: Selection of the supplier and hiring
Once you have clear the services to outsource, you have to choose which provider will be responsible for carrying out the outsourcing. To do this, criteria for the selection of suppliers have to be established, such as the level of innovation, technological capacity, costs or experience. Once the supplier has been selected, it must be negotiated with him to determine the clauses of the contract.
Phase 5: Follow-up
The last phase arises from the moment in which the external provider begins to provide the contracted services. At this point it is necessary to control and monitor the services, verifying the service level specification (SLS) that we had established in phase 3.
Choosing the right provider
One of the critical success factors in outsourcing is the selection of suppliers. The chosen provider must have ample capacity and flexibility when executing operations.