Business process outsourcing and contracting out a process are often thought to be one and the same, but the thing that sets them apart has everything to do with control and accountability.
With contracting, the contractor delivers the promised goods using the process dictated by the business owner– to the letter. The contractor cannot deviate from the set specifications. Should a process fail, the contractor is seldom liable.
BPO, on the other hand, is primarily a transfer of control of a business process from the business owner to the BPO company. After fundamental principles are agreed on, the BPO company “owns” the process and decides how best to carry it out. This is where the value of BPO is created: in leveraging the BPO company’s expertise into evaluating the existing process, creatively re-engineering and adding to it to produce the desired results for the business. Because the stakes are higher, BPO companies in turn ask a lot more of their own components (technology and human resource) with parameters very clearly defined and monitored. Control betokens an assumption of responsibility for the process outsourced. This prevailing attitude of being accountable and having to be better than the day before results in increasing a business’ shareholder value.
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[...] Outsourcing tech support is not just about cost savings, it’s also about practicality. Outsourcing allows companies to provide support 24/7/365 without breaking the bank and without overworking their core teams to the ground. Also, expanding and outsourcing tech support lessens high call volumes, decreasing the wait the customer has to endure to get to a live agent. This solution is typically cost effective and practical, though its practicality can bring a slew of problems if the technical support agents aren’t effective in communication and problem solving. [...]