How To Effectively Measure the Success of Outsourcing?
 Back Office

How To Effectively Measure the Success of Outsourcing?

Ryan Thompson
Ryan Thompson
November 9, 2022
Last updated on:

November 9, 2022


Read time: 5 mins

When we talk about business process outsourcing (BPO), the virtual world market will reach $3 billion in the next few years. Also, it is no surprise that the tally of home-based customer service agents is growing at an annual growth rate of 36.4%. This article on "How To Effectively Measure the Success of Outsourcing?" explains some tips for measuring your outsourcing project's success. Measuring the success of a Business Process Outsourcing company is all about setting the right assumption and measuring performance against key performance indicators.

When firms outsource their processes, they expect to see enhancements in efficiency and productivity. However, it might not be easy to decide whether or not your outsourcing initiative is successful. While there are many conveniences for businesses, a BPO call center needs to perform a few key functions, like fast onboarding, agent monitoring, and data measuring, to be effective. Therefore, measuring the outsourcing vendor's performance against a few pre-defined KPIs is very important for the success of outsourcing.

As we have seen in the intro about How To Effectively Measure the Success of Outsourcing? Now will see the next topic What to Measure?

What to Measure?

In the first place, make a rundown of objectives you set for your reevaluating organization. Afterward foster different measurement/measurements to quantify whether every objective is met. The good scorecard is ideally suited to comprehensively estimate your seller's general presentation and worth, comprising important and immaterial measurements. From, generally speaking, rethinking supplier's estimation and an incentive for cash measurements, a commonplace adjusted scorecard examines six regions: relationship, quality, cost administration, conveyance, system, and development.

Measuring Success of Outsourcing

Following are the few KPIs you can follow during outsourcing business processes while tracking the process.

Service Level Agreements

This set of objectives is generally tied to specific client-contracted engagements. And can include the average speed of answer performance targets and abandonment rate attainment. Although many BPOs adopt an 80/20 service level (as somewhat of an industry-standard), a Folono post on getting the right service level suggests that management should think otherwise.

Agents Turnover

Statistics show that agent attrition rates are conceivably as high as 20–30% annually. While the outsourced contact center can cut down agent turnover (under customer service representatives being able to work from home). It's nevertheless important for managers to keep an eye on attrition rates. In addition, since agents are at the forefront of interacting with customers. It's also necessary for managers to consider the process agents will represent the company. IN that sense, BPOs have a convenience over local companies as their applicant pool isn't limited to any one location in particular.

Evaluate the Performance

Outsourcing shows no signs of slowing down as a key driver to a company's growth and success. It is a solution to your business problems rather than a burden. Getting agents to direct a particular area of gap (e.g., script compliance, product knowledge, etc.). But the question is: How can BPOs push agent teams to amend their performance basis? A huge part of this rolls down to managers experiencing and supporting the team over decades. For example, helping them accomplish skills, identify and execute professional development opportunities, etc.

Conflict Resolution

Conflicts are inevitable, exclusively when you prefer outsourcing business processes to a third-party service provider. Conflict resolution needs to include an otherwise negative effect among the KPIs you are formulating for tracking the whole process of outsourcing business processes. The point of communication must make sure that both parties are following the protocols so that the conflict rate may diminish and productivity might increase.

Process Adherence

Today's customers are too busy, and when they come across problems, they want them resolved asap. So what do BPOs do to ensure that agents handle customer concerns as swiftly and efficiently as possible? It all comes down to the process.

Complaints Handling

Handling complaints within or outside the firm is vital for each company while dealing with customers or different companies. Doesn't matter whether you are outsourcing business processes to a BPO or making an industry deal with another firm. Complaints will come in the process. Build a process that deals with issues and complaint handling and make sure that the feedback time should be abrupt otherwise, there will be serious business concerns.

Set Milestones

Laying out practical cutoff times and seeing how the re-appropriated group performs are great marks of the workers' effectiveness. Begin with little assignments that integrate specialized perspectives, and check whether the staff can deal with them. Finishing things in time is key for the progress of an undertaking, yet make certain to quantify the process duration too. This includes working out the time spent to foster a component or fix an issue all along up until the finish of the undertaking.

Communication and Transparency

Measurements and numbers aren't the main ways of estimating a reevaluating undertaking's positive outcome. The functioning relationship you have with your reevaluated group's individuals can say a ton regarding the task. Convey frequently and be predictable and clear about the assumptions that you have. Moreover, attempt to constantly know about each part's requirements, disappointments, and responsibilities.

Final Thoughts - How To Effectively Measure the Success of Outsourcing?

While there are many allowances to using outsourced contact centers, it's crucially important for firms to measure the effectiveness of any BPO company to assure customers are getting the best experience possible. The key is to think beyond KPIs and use the measurements to evaluate agent performance and processes.

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