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
3Pillar Global hired 72 professionals this year, looking for further recruitments

Global custom software development company hired 72 IT specialists in 2019, adding to the team of 500 professionals working in the company's Romanian offices located at Cluj-Napoca, Iasi and Timisoara.

 Read Full article »
JLL: Total office space in Bucharest to reach 3 million sqm

The second quarter of 2019 reconfirmed the increased interest for the office market in Romania. Over 115,000 square meters of office space were leased over this period at the national level, a value similar wit

 Read Full article »
Horváth & Partners launches Steering Lab, Big Data and Machine Learning-based excellence center

Management consultant Horváth&Partners announced it launched an excellence center in Romania, Steering Lab, AI-based and using tools of Big Data and Machine Learning.

 Read Full article »
Colliers International takes over the property management of Vastint's Business Garden Bucharest

The real estate consultancy company Colliers International will be in charge with the property management of the office compound Business Garden Bucharest, developed by Vastint in Orhideea area in Bucharest.

 Read Full article »
Survey: Romanians switch to a lower-paying job for other advantages

One out of five Romanians took at least once throughout their career a lower-paying job and two out of five would take a lower-paying job in exchange for other advantages they see as more valuable, a survey con

 Read Full article »
Fujitsu named a leader in Gartner Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, Europe

Gartner has once again named Fujitsu a Leader in the 2019 Gartner Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, Europe. This is the seventh consecutive year that Fujitsu

 Read Full article »
KKR enters exclusive negotiations with GBL for Webhelp Group

KKR, a leading global investment firm, announces it has entered into exclusive negotiations to sell a majority stake in the Webhelp group to Groupe Bruxelles Lambert (GBL). GBL will invest alongside Webhelp's

 Read Full article »
TELUS International continues to grow in Bucharest

In order to support the extensive hiring planned for TELUS International in Bucharest this year, the company has acquired 1,200 sqm more space, in addition to the 8,800 sqm office space it has in AFI Park.

 Read Full article »
EY: Four out of five companies plan to reduce their legal spend over the next two years

Eighty-two percent of companies plan to reduce their legal function costs over the next two years, with 42 per cent of respondents planning on doing so by more than 10 per cent, according to a new report releas

 Read Full article »
ANCOM: About 15 million connections affected by security

About 15 million connections were affected in 2018 by security incidents that had in view the security and integrity of electronic communications networks and services, most of them being about mobile telephony

 Read Full article »
 
 
 
MOST READ ARTICLES
» Raiffeisen Bank Romania outsources onl...
» Horváth & Partners launches Steering ...
» JLL: Total office space in Bucharest t...
» Genpact, Luxoft and Oracle, top lessee...
» SSC in Romania. Who takes the lion's s...
» Oracle results pushed down by a strong...
» World-class HR organizations now spend...
» Romanian employers report the stronges...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Eucom: Nine out of ten corporate Roman...
 
EDITOR CHOICE
My HR Lab: Research of suitable candidates and giving feedback to rejected ones, the biggest challenge in HR

During June 2019, My HR Lab company run an online (social media platforms) survey "Challenges of the recruitment process" which enrolled over 100 professionals working in HR and recruitment in Romania.

 Read Full article »
The local market needs more added-value and complex projects to be developed by the companies

The statement has been uttered within this year's Romanian Outsourcing and Shared Services Summit by Catalina Dodu, Country Manager at Atos, pointing to the local enablers that could enhance the innovation and

 Read Full article »
The office market at a glance: The round for tenants is on

Data provided by CBRE show that the office spaces segment will continue to grow rapidly in 2019, and 15 new projects covering 304.000 sqm will be delivered. According to the real estate consultancy agency, curr

 Read Full article »
People Empowering Business Forum 2019 to take place on October, 30 at Bucharest

Latest trends like demographic upheaval, globalization, digital technology, and changing social values and worker expectations, are disrupting business models and radically changing the workplace. These are req

 Read Full article »
Addressing the mantra of cyber-security: Confidentiality, integrity and availability

The fast advancement of technology in all the aspects of everyday life, either personal or professional, and the emerging of AI (Artificial Intelligence) and ML (Machine Learning), not to mention cloud technolo

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