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
Berg Software Romania: Reasons to outsource your software services to Romania in 2019

According to an opinion published by Berg Software, a company that specializes in technology consulting, software development and nearshoring/ offshoring, for both SMEs and large enterprises, with offices in Ti

 Read Full article »
Arvato CRM Solutions rebranded under the name Majorel

Bertelsmann and Saham's customer experience business, "Majorel" has been recently launched, according to a press release of the company.

 Read Full article »
Banca Transilvania launches BT Open Banking platform dedicated to fintech companies

Fintech companies and start-ups in IT can test the new BT Open Banking platform (BT Api Store), launched by Banca Transilvania, for online integration with banking services such as: display of online balances,

 Read Full article »
Techcelerator and Google Developers Launchpad sign a partnership for growing startups in Romania

Techcelerator, the acceleration program in Bucharest and Cluj and one of the relevant catalysts of the local tech ecosystem's growth and development, announced a partnership signed with Google Developers Launch

 Read Full article »
Bogdan Pelinescu, president of ABSL: At least 6.000 people to be enrolled in outsourcing industry in 2019 in Romania

Around 6.000 professionals are estimated to be hired in the outsourcing sector in Romania this year, according to a study conducted by Romanian Business Service Leaders Association (ABSL) and consultancy compan

 Read Full article »
Tremend expands its expertise in the financial area, through a new unit coordinated by Stefan Patra

Tremend, one of the fastest growing Romanian software companies, enriches its team of professionals. Stefan Patra joins the team as Vice President of the newly established unit of Financial Services and will co

 Read Full article »
Infosys officially opens new digital innovation center in Romania

Infosys a global leader in next-generation digital services and consulting, announced this week it will be opening a new Digital Innovation Center in Bucharest, Romania at an event attended by local government

 Read Full article »
Atos supports the OneWeb Constellation Program primed by Airbus OneWeb Satellites

A new era of mass producing satellites was achieved when Atos supported OneWeb in the successful launch of six satellites on February 27th. Atos' contributions included providing all of the Assembly, Integratio

 Read Full article »
Romanian Startup Barometer by EY Romania: Half of entrepreneurs says fiscal and regulatory environment deteriorated in 2018

Mentality and fear of failure rank first in the top barrier for those who want to start and develop a business in Romania, according to the Romanian Startup Barometer by EY Romania, Impact Hub Bucharest and Sta

 Read Full article »
Tower 3 of Globalworth Campus is now under construction

After delivering the first two office buildings within Globalworth Campus complex, the company announced it started the construction of Tower 3, with a total leasable area of 35,000 sqm.

 Read Full article »
 
 
 
MOST READ ARTICLES
» TELUS International Europe: Three ways...
» Deloitte's Tech Trends 2019 report: B...
» Molson Coors started to grow its busin...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Capgemini: Investing in people is the ...
» Hays: Timisoara outsourcing industry f...
» The Outsourcing industry announces its...
» Romania ranks above EU average in gend...
» DTZ: Office demand outside Bucharest t...
» Committed to growth
 
EDITOR CHOICE
The voting procedure for the BRAND OF THE YEAR 2019 IN ROMANIAN BUSINESS SERVICES is open!

This is the fifth edition of the event and the second year to select the public's favorite brand in the business services BPO, ITO and SSC in Romania.

 Read Full article »
Romania ranks above EU average in gender employment gap

In Romania, the employment rate measures the number of people who have a job as a percentage of the working age population. This page provides - Romania Employment Rate- actual values, historical data, forecast

 Read Full article »
Steven Hunt, SAP SuccessFactors: Tectonic movements in the world of work

The world of work will be shaped by five tectonic movements – or global megatrends – over the next few years. As you may guess from the geological analogy, the effects could be dramatic.

 Read Full article »
EY: European companies are divesting to future-proof growth

According to the EY Global Corporate Divestment Study, 84 per cent of European companies surveyed intending to divest within the next two years (the majority planning to do so in the coming 12 months), executiv

 Read Full article »
Knowledge-sharing presentation on latest trends the industry deals, in the program of Romanian Business Services Forum and Awards

Part of the upcoming joint half-day event, Romanian Business Services Forum and Awards to be held at JW Marriott Hotel on May 7th, the discussion agenda comprises a complex Knowledge-sharing presentation on lat

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