Optimize Outsourcing Outcomes With These BPO Governance Best Practices

From defining goals to addressing issues—discover the essential role of BPO governance in driving successful outsourcing partnerships.

Published on June 5, 2023
Last Updated on August 24, 2023

Ensuring a successful partnership with a BPO (Business Process Outsourcing) company poses a significant challenge for businesses, requiring a strategic approach that considers both the initial stages and the long-term success. As important as it is to choose the right BPO partner, having a  well-established and transparent BPO governance structure will lead to relationships that are managed easily, smoothly, and yield for the best results. In the latest episode of Inside Out, TaskUs Vice President of Operations Nazryne De Guzman talks about the basics and best practices when it comes to BPO governance.

Watch the episode here:

Will I have to lose control of my business?

“No, not at all. You will continue to be the decision-maker. You will dictate what your priorities and goals are, and we will help you make that happen.”

As the business owner, you retain control over your business and establish specific, measurable objectives for your partner. Your outsourcing provider will focus exclusively on these assigned tasks and goals. This way, they’ll be taking care of the day-to-day operations while you and your team focus on your core business activities.

What type of communication cadence should I expect?

“It’s important that you’re at ease while doing business with your outsourcing partner, and it all starts with effective communication.”

Strategic outsourcing requires a consistent communication cadence between the business owner and outsourcing provider. The frequency and type of communication may vary depending on the needs of the business, but it should be established from the outset of the relationship.

Regular meetings, status updates, and performance reports are essential, and should be done through weekly, monthly, and quarterly business reviews. Documentation should also be provided after every meeting for reference. Lastly, as the partnership progresses, you should be able to communicate your preference regarding the frequency of these reviews.

How do I establish the right operational *KPIs and SLAs?

Success will look different for each company. In some cases, it may be as simple as resolving outstanding ticket backlogs, while others may be looking to make more significant impact to their daily operations concerning growth, service delivery quality, customer channel accessibility, and global customer satisfaction.

A good practice when outsourcing operations is to identify specific, measurable, achievable, and time-bound (SMART) goals. On top of this, it’s essential to factor in the historical trends of these metrics and how they align with the overall objectives your business needs to achieve.

*KPIs (Key Performance Indicators) are metrics used to measure the performance of the outsourcing provider, while SLAs (Service Level Agreements) outline the specific services to be provided, the quality standards, and the consequences of not meeting those standards.

How will we be partnering to manage the program operations?

Effective BPO governance establishes a comprehensive system of accountability, communication, checks, and balances, ensuring that both parties work towards the same goals while maintaining the integrity of the business. The client should be the one to establish the overall goals and direction of the partnership, while the vendor uses this direction as guidance on their day-to-day operations.

“The client determines the overall direction and objectives by asking, 'Where do we want to go, and what do we need to accomplish?'”

Partnering to manage program operations requires effective communication and collaboration to foster trust in the client-vendor relationship.

What type of management oversight does an outsourcer provide? How are outsourced teams managed?

Even with stringent BPO governance, the success of outsourcing will greatly depend on the provider’s capabilities. The outsourcing leadership team should be able to do all the heavy lifting in recruitment, workforce management, and delivery of desired results. They must be able to provide adequate support to the outsourced teams. With the right management processes in place, you’ll have more time to focus on your overall business strategy.

How are risks and issues typically handled? Who can I contact to provide feedback on my experiences?

“Typically, you will have your points of contact established and communicated right from the get-go.”

Your outsourcing partner will provide a dedicated point of contact for essentially all aforementioned matters concerning your program/campaign. This POC represents a team of experienced outsourcing leaders who have a clear understanding of client directions as well as on-ground, day-to-day operations. As your dedicated team, you should be able to trust them to update you on feedback or concerns and to address and resolve them.

If my outsourcing partner encounters an issue or mistake, what is the process for handling it?

“This is where the aforementioned thread of trust comes into play. It is expected that errors or issues are escalated as real-time as possible so that we can act on them quickly.”

The process for handling issues and mistakes should begin with the outsourcer reporting to the client team as soon as possible and provided with all relevant information. This can include the cause of the incident, the potential impact (both short- and long-term), and the ongoing progress in resolving the issue.

For issues or mistakes, the BPO should conduct a full RCA or Root Cause Analysis—how the issue happened, how it could have been avoided, and what actions to take to prevent it from happening again.

Taking an active part in the issue resolution can be as simple as being responsive or providing quick feedback to help guide the outsourcing partner. This can help ensure that issues are addressed quickly while also maintaining the overall success of the outsourcing relationship.

What if the business needs to change over time? How will my outsourcing partner help me adapt?

  • Full Impact Analysis
  • Success Measures
  • Strategic & Tactical Actions

Business needs change all the time. No matter the scale, the adjustment process should always begin with outlining the changes needed. From there, the BPO provider can conduct a full impact analysis, present the success measures, and lay out strategic and tactical actions to deliver the desired results.

A well-established and effective BPO governance practice includes driving mutual accountability to protect both parties throughout the process. This means providing clear communication and transparency as the provider works on the necessary changes.

Some examples of work statements both parties need to revisit include:

  • Changes in Support Channels
  • Scope of Support
  • Billing Method
  • Global Shifts/Work-From-Home to Office environment or vice versa

No-Frills, No Fuss, Just Ridiculously Good Outsourcing With Us

Recognized by the Everest Group as the World’s Fastest Growing Business Process (outsourcing) Service Provider in 2022 and quickly gaining popularity in Gartner Peer Insights Review, TaskUs is known to make BPO services Ridiculously Easy for our partner clients. With a focus on collaboration, transparency, and continuous improvement, we work closely with our clients to develop customized solutions that drive results.

Whether you're looking to streamline operations, reduce costs, improve service levels and enhance customer experiences—you can count on Us.

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