Lack of good infrastructure is the weakest link in most global outsourcing deals. Managing relationships to mutual benefit is notoriously difficult in all cases. And managing them from many time zones away just compounds the problems. Governance is strictly defined as authoritative direction or control, but in this context, we mean how global-service initiatives are run---the people, processes, systems, and controls.
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All businesses have one thing in common which they want to achieve; that is Profit. One way to attain profits is through saving costs. Business Process Outsourcing is no longer a catchphrase and we all know that one of the biggest upsides to outsourcing is to get the same work from an outsource vendor at a lower operational cost. As outsourcing matures, this cost-centric approach has evolved, and these days outsource vendors aim to provide better quality and lower handling times for transactions to their customers. Often, software applications can be used to enhance process efficiencies resulting in further cost reductions, quality and turn around time improvements.
Clear Understanding of Requirements
At the beginning of an outsourcing engagement, a clear understanding of client requirements should be developed. Once Service Level Agreements are met in terms of quality, productivity and turnaround times, decisions should be taken on how to go about building efficiencies. Often it becomes advantageous to employ internally developed tools and software applications to achieve efficiencies.
Determine Repetitive Processes
Process experts get involved here. At the end of a process mapping exercise, they find out what needs manual attention or intervention, and which portions of the process can be automated with the help of software programs or tools. These determinations lead to the development of innovative tools which not only help the operations teams, but can also help clients in exceeding service levels and quality standards.
Innovative Tools
After the exact requirement is framed for applications which can help with predictable jobs and repetitive tasks, a development plan should be created for tools which have been identified. A number of tools can be developed to help the outsource vendor's operations teams in extracting performance reports, meeting quality parameters, and maintaining service levels. Not only that, many of these tools can provide custom reports which often cannot be generated by client tools. Some sample areas where tools can be used to enhance process efficiencies, are explained below.
Productivity Tracking: A productivity tracking and feedback tool can help agents keep track of transactions they have processed, and in making entries of the transactions processed (since transactions can run into millions per year). One can generate reports based on the time zone selected against additional data entered and selection of the correct program queue. The program leaders can view different report summaries and detailed program information. It can also help in storing feedback of transactions, and can allow for recording errors for quality purposes. Knowledge Databases: A knowledgebase can be developed to maintain internal updates. Also, agents could store their day-to-day questions in the application. The program leaders could then discuss these questions with the client during their weekly call or via email, and enter the resolution data back in to the system. The next time someone has the same question, they can easily look up the answer from the system. Such applications also allow program leaders to enter regular updates provided by clients and all team members are updated through the system at the same time. Quality management systems: Such an application has been used for transaction processing and HR (401K) administration programs and the tool has helped the operations team in measuring the quality of the team's work based on transactions and error types. The tool also helps managers measure the team's productivity and average handling time. Information Systems for Program Managers: Other customized tools can be used to assist managers in identifying the progression of a task. Program managers on an Internet Research project were using Excel to store information related to how many cases have been processed, how many are on hold and how many were in QC stage. A tool was developed to help managers and team leaders generate online reports which displayed total processing time, total hold time, total batches (of cases) completed, files under QC, batch details, etc.
As we observed, requirements mapping, and process definition can lead to useful tools which can help vendors improve efficiencies, reduce errors and generate online management reports. A well thought through approach adds significant value to any project, rather than just a lift and drop of a process from an onshore to an offshore location.
Summary
Outsourcing is a win-win prospect for clients and outsourcing partners, and is even more productive when the outsourcing partner is smart enough to handle operations innovatively through the development of customized tools and applications. Clients gain cost benefit advantages, process improvements and customer satisfaction, and are better able to foster growth by focusing on their core business.
Chirag Shah
The author is the Director of Software Development at Motif, Inc. a specialized BPO (Business Process Outsourcing) company providing rules based and decision intensive back office transaction processing services, customized email response services and internet research & analysis to global clients.
(www.motifinc.com)
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