As cost demands continue to take
business process outsourcing (BPO) decisions, companies increasingly look for development
in business outcomes and transformative advantages when outsourcing finance and
accounting, human resources, procurement, and other business processes.
The advantages to be gained by
pulling the "operational excellence" of
partners, which includes better business outcomes and results, efficiency,
process innovation, improved quality, standardization, data privacy, compliance
and continuity. That can be as important as the customary outsourcing benefits
of minor labor costs and assets transfer.
This scrutinizes the
opportunities for leveraging a BPO partner's operational excellence for
improving business results. It also examines the potential impact of the BPO
provider's operational practices on delivery, quality, cost, compliance, risk,
agility, and continuing optimization.
Speeding up business performance
improvement by leveraging a BPO partner's capabilities, operational expertise,
and assets is a plan that is gaining attention among organizations that
outsource business processes. Finance
and accounting, human resources, and procurement, are the business functions usually
viewed as support functions, are now seen as areas of opportunity. Where a tactical partner's ability to improve
speed, quality, process, continuity, security, and compliance can deliver important
additional cost savings, reduce risk, and enhance competitive advantage.
Significantly, cost savings
through labor arbitrage was the dynamic force for most of the early BPO
dealings. Though, with price rises and exchange rates reducing the labor
arbitrage benefit, both buyers and providers of BPO services are increasingly looking
to improved operational capability and improved business outcomes as the more
sustainable benefits of an outsourcing relationship. Business outcome benefits
are now common, such as improved cash flow through working capital management
or integrated business intelligence far exceeding simple operational cost
savings."
