In my last blog post, “Is Outsourcing the Right Strategy for My Company?,” I shared the most important points for a company to consider when considering whether or not to outsource.
If you conclude that outsourcing certain business functions to a Business Process Outsourcer (BPO) will benefit your organization, your next step is to select the right partner.
Not all BPOs are created equal. Regardless of which particular service you seek to outsource, the outsourcer should enable your company to become more agile, improve the customer experience, and create efficiency.
Here are four fundamental points for you to consider when selecting the right outsourcer for your business:
- Complimentary Services: How well do the BPO services complement or enhance your company’s core capabilities and customer values?
- Relevant Experience: Does the outsourcer have a relevant and meaningful experience that will improve your company’s ability to compete in your industry? Do they offer innovative business solutions to address specific challenges that might even be unique to your industry?
- Transparency: Does the BPO foster a culture of compliance and open communication to keep your company informed about potential risks to your company’s reputation, finance and operations, and compliance? Do they also offer a plan to mitigate such risks?
- Alignment: Is the potential BPO business partner’s culture aligned with your company’s objectives? Is the BPO’s business model structured to prioritize its profitability, or is their business model designed to eliminate friction, improve customer experiences, and create successful outcomes. For instance, is the company’s first obligation to increase shareholder value? Does the BPO provide all-inclusive pricing policies to avoid nickel and diming at every turn?
These are just a few questions you should consider when vetting potential BPO partners for your organization. There are plenty more. I invite you to reach out to me on LinkedIn to discuss them.
Over the past few years, the BPO industry has experienced unprecedented consolidation, to the tune of billions of dollars in M&A activity, leading one analyst to comment:
“Keeping track of which company is buying or merging with which other company is almost a full-time job at present.”
While industry consolidation may enhance the bottom line for the companies involved in the merger — results have shown that small and midsize businesses, particularly those that lack the size and influence of a largescale enterprise account, have been affected adversely by these mergers.
As the new focus turns toward driving shareholder profitability and recovering the costs incurred during the merger, the clients tend to see transactions start to replace relationship building.
Going into next week, I raise the question to: What type of relationship do you want with your BPO?
The founders of Servicing Solutions came from small to medium-sized businesses. Finding a BPO partner committed to building relationships with their customers was a challenge. We understand that relationship building is often the most significant differentiator and competitive advantage that a small to medium-sized business can have.
We are committed to growing our business the right way by treating our clients’ customers the way our clients want their customers treated.
“Servicing Solutions has played a critical role in our success. More than anything else, their ability to build solutions that work for our model—rather than trying to fit our model into cookie-cutter solutions—is what sets them apart.” Steven David, CEO, Peak Acceptance