Latest News  

Study reveals how to get outsourcing relationships right – Jeffrey Puritt

Time. Money. Energy. When you're investing significant resources into your Business Process Outsourcing (BPO) relationship, you want to ensure you're getting the most value from that partnership.

2016-04-28 13:52:19 - by Jeffrey Puritt, President, TELUS International

This is now more important than ever with the US$150 billion global BPO industry trending towards fewer but more meaningful buyer-supplier relationships. In fact, a new study by Everest Group, with support from TELUS International, found that less than 50 percent of end-of-term contact center outsourcing contracts were renewed between 2013 and 2014. The question is why? What's separating the critical relationships from the dispensable ones?

The non-renewal rate underscores the need for both buyers and suppliers to re-evaluate their approach to outsourcing relationships. It's when service providers go above and beyond to deliver innovation, and when buyers bring more attention to the relationship, that contract renewals are most likely. In short, it all starts with buyer-supplier engagement.

Success factors for better BPO partnerships

Just as companies focus on employee engagement to attract, motivate and retain the best people, buyer-supplier engagement should be viewed as equally critical to achieving value-driven and differentiated services. As outlined in the study, there are several factors impacting outsourcing relationship value and partnership engagement. These can be grouped into three areas of focus: connectivity, knowledge, and innovation.

Focus area 1: Create connectivity

Engagement starts with making connections at all levels of the partnership. At the executive level, senior leaders must be present throughout the relationship and not just when the deal is signed. Executive presence on both sides indicates investment in the partnership. As part of the governance model, consider including an executive steering committee to support the working partnership.

At the employee level, engagement is absolutely crucial. Highly tenured agents who feel valued and engaged bring passion and commitment to their roles. They take ownership of customer service issues and strive for better customer experience outcomes. But engagement is hard work — on both sides. Often going beyond salary, engagement programs look at what truly matters to employees on a personal and professional level. From extended health care benefits and onsite university programs to leadership development and community giving, a vested interest in engagement programs can drive BPO success.

Focus area 2: Deepen mutual business knowledge

As an outsourcer, you're tasked with working directly with a client's most valuable asset — their customers. You need to be a true extension of their brand. Yet the number one complaint from BPO buyers is a lack of communication with their vendors. More frequent, constructive and frank discussion is helpful, and formalizing a communication strategy is even better. This means establishing regular health checks, pulse checks, or business reviews to ensure that communication flows on a regular basis.

Once everyone is talking, it's time to align on business objectives. Service providers must support the day-to-day operations while making an effort to understand the buyer's overall business direction. Additionally, buyers need to take the time to educate their providers on their objectives, including expansion plans, process refinement and areas of continuous improvement.

Focus area 3: Drive innovation and quality

The most successful companies don't just sit back and hope innovation happens to them; they work to make innovation a repeatable process. In more engaged relationships, service providers have been known to deliver innovation when it comes to recruitment, training, business process improvement, and engagement models. Planning for innovation by building appropriate metrics, even incentives, into the initial contract, and including it as a standing agenda item in status meetings, ensures prioritization and accountability.

When it comes to quality, all outsourcing relationships experience some level of stress, especially at the start. However, ongoing quality issues are often a sign of focusing on the wrong things like cost and efficiencies at the expense of customer experience. Providers must remain committed to Quality of Service measures that drive insight and relevancy into the business. And while efficiency and effectiveness measures remain relevant, business outcome measures like Net Promoter Score and Customer Effort Score should become more important and serve as a sign of a more invested, customer-focused partnership.

The bottom line

Engaged outsourcing relationships don't just happen — they are envisioned, intentionally nurtured, and diligently built. Buyers look to their service provider to deliver the resources and know-how to better meet the needs of their customers, while service providers look to the buyer for the knowledge and direction to achieve better business results.

It's a symbiotic relationship that requires extensive collaboration, effort and planning to reach mutually beneficial outcomes. In the end, the outsourcing partnerships that stick are the ones where both parties are committed to achieving a value-driven service model beyond cost savings.

About TELUS International

Author Jeffrey Puritt is President of TELUS International, a global BPO and ITO company with over 21,000 team members around the world, including in Canada, the United States, Central America, Europe and Asia. TELUS International is the global arm of TELUS, one of Canada's largest telecom companies, with CDN$12.5 billion in annual revenue and 12.5 million customer connections. Learn more: telusinternational.com

The article was originally published on CIO Today. Article available for PDF download.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Recruitment, retention and professional development of employees in the context of major changes in outsourcing

The Business Service Leaders Association (ABSL) organizes on May 24, 2018, at Ramada Hotel in Iasi, the conference "How HR Practices evolve in a period of major changes in outsourcing Industry". The third editi

 Read Full article »
Comdata acquires CCA International, deal should be finalized in June

After the acquisition, mid-2017, and the successful integration of B2S (now Comdata France), the Comdata group signed, yesterday, an agreement on the acquisition of CCA International, the company says.

 Read Full article »
ABSL Romania is offering 30 scholarships every year for postgraduate studies

Business Service Leaders Association Romania (ABSL) annually offers 30 scholarships in the Business Services Master program for young people wishing to pursue a career in the outsourcing industry. As a result o

 Read Full article »
Portland Trust and Ares Management LP have sold the suburban office park, Oregon Park, to Lion's Head Investments

Lion's Head Investments makes its first steps into the Romanian real-estate market and announces the acquisition of Portland Trust's and Ares Management's Oregon Park project, which consists of three class A Of

 Read Full article »
Amazon creates more than 650 new permanent jobs in Bucharest

Amazon and Amazon Web Services (AWS) today officially opened a new Corporate Office and Technology Development Centre in Bucharest and announced the creation of more than 650 permanent, technology-focused and c

 Read Full article »
Portland Trust's Oregon Park in Bucharest wins CEEQA's "Overall Building of the Year SEE"

Portland Trust, a commercial real estate developer and asset manager headquartered in Prague, announcesd that Building B at its Oregon Park office complex in the Romanian capital of Bucharest won the 2018 CEEQA

 Read Full article »
US Kellogg's opens new division at Bucharest

The US-based multinational food producer company, Kellogg's announced that it will create 50 jobs at its Bucharest centre by the end of 2018, by opening a new division at the Bucharest centre. The new positions

 Read Full article »
Techsylvania 2018 lines up powerful tech specialists at Cluj-Napoca between June 9-12

Techsylvania is the leading technology event in Eastern Europe, built to revitalize the local tech community through high-quality information delivered by worldwide experts in the IT&C industry. Engineers, deve

 Read Full article »
Accenture names Gianrodolfo Tonielli in the position of Country Managing Director in Romania

Starting May 2018, Gianrodolfo Tonielli takes over the position Country Managing Director of Accenture Romania, the company announced.

 Read Full article »
Atos and Google Cloud form a global partnership to deliver secure hybrid Cloud, machine learning and collaboration solutions to the enterprise

Atos, a global leader in digital transformation, has entered into a global agreement with Google Cloud to address the digital transformation needs of enterprise customers. This agreement will see the creation o

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» DTZ: Office demand outside Bucharest t...
» Capgemini to open new office at Suceav...
» Molson Coors started to grow its busin...
» Romania, Europe's third and world's 13...
» Committed to growth
» Romanian software group expands to Bul...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Genpact's COO: Staying ahead of the cu...
 
EDITOR CHOICE
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
The Outsourcing industry announces its winners at Romanian Outsourcing and Shared Services Awards, 2018 edition

Last night, Outsourcing Today and the Diplomat-Bucharest awarded the performance and excellence in business at the 4th edition of Romanian Outsourcing and Shared Services Awards ceremony, organized at Radisson

 Read Full article »
Ciprian Dan, Wipro BPS: The industry needs to take a more sophisticated turn

According to Ciprian Dan, Location Head at Wipro BPS, the language skills have not ceased to remain one of the competitive advantages for our market but to relate to this advantage as the sole plus is risky on

 Read Full article »
Olga Botusan, Stefanini: There is a huge need to develop particular skills for specific areas

Stefanini is a company strongly involved in the business shared industry not only for creating the demand for workforce and hiring but also for the programs developed in order to specialize the needed professio

 Read Full article »
Romanian Outsourcing & Shared Services Summit: In the search of the best strategy to stay relevant

Currently, according to companies operating in outsourcing and business shared services in Romania, there is an intense discussion regarding the availability of prepared workforce in the industry. Even if the c

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events