The good, the bad, the ugly

As a successful business process outsourcing (BPO) provider, we at BBC Global have seen the good, the bad, and the ugly in various outsourcing journeys. In other words, we’ve seen organizations succeed through comprehensive outsourcing, and we’ve seen organizations take an ill-advised approach that leads to costly, time-consuming mistakes.

An informed, strategic approach to outsourcing can help you minimize these missteps and take full advantage of outsourced services. More than simply offloading tasks to a third-party provider, outsourcing should provide an organization with a reliable partnership that enables performance improvement, increased operational efficiency, and sustained growth.

• Mistake 1: Outsourcing Core Competency
• Mistake 2: Outsourcing Your Problems
• Mistake 3: Failing to Identify Goals of the BPO Relationship
• Mistake 4: Failing to Properly Vet the BPO Provider
• Mistake 5: Operating Too Fast
• Mistake 6: Failing to Educate Your Staff
• Mistake 7: Partnering with a Provider that Does Not Value Its Employees

Mistake 1: Outsourcing Core Competency

When decision-makers learn about the benefits of outsourcing, they often envision the money they could be saving while increasing or reducing their staff. They may develop a new business idea, plan to outsource it all, or seek to ship the entire sales organization overseas. It's easy to get swept up in the idea of "just outsource everything."

Pump the brakes! You should never outsource what makes your company special. Never attempt to reproduce your secret sauce. That's the reason your customers chose you in the first place.

snapscale can help you determine which areas of the organization are appropriate for outsourcing and develop a plan for success.

For instance, it may not be appropriate to remove your customer service manager or top sales reps. They can be viewed as the "control" for success and most likely are a key to your stellar customer communication. A premier BPO like snapscale can support your organization and management by finding, training, and managing additional customer service reps.

In-house staff, as much as they are still charged with some production, become more focused on triage for outsourced staff as you scale your business. In-house staff are transformed into experts who ensure you maintain the culture your clients know and appreciate.

Lastly, outsourcing makes it possible to increase service availability for up to 60% less than hiring more staff in your office without that dreaded HR liability that comes with in-house employees. This is a cost-effective way to maintain and even increase customer engagement while keeping your stars right where they are… supporting your clients!

To support your business and clients, we offer a full suite of services that can be leveraged from front to back office:

Mistake 2: Outsourcing Your Problems

Organizations often outsource with the hope of lessening operational problems. This is a major misnomer. While it's easy to make employees the scapegoats for dysfunction, these problems are usually due to inadequate controls and processes, not employee execution.

Simply put, if you don't have proper policies and procedures in place within your four walls, outsourcing will not improve the situation. In reality, you will be recreating the same issues across the globe with outsourced staff.

Organizations need to work in concert with their BPO partner to become better organized, focus on consistent workflow, and maintain clear, consistent communication. Without internal accountability, you will not be able to realize the full value of outsourcing.

snapscale will guide and support you throughout the process. For example, a client came to us to help outsource basic accounting issues due to disappointment in employee performance, which were deemed simple, fundamental tasks by the CEO.

However, when we assessed the process to identify exact steps, they had nothing in writing and could not explain the process. When we asked the CEO to explain what he wanted to achieve and his desired key performance indicators (KPIs), we were met with a blank stare and told, "Just get it done."

The CEO wasn't being rude. He just didn't have the answers and expected everyone else to know. He advised us to approach the manager, who said she had nothing in writing but knew exactly what to do, or so she thought.

Foreseeing a complete disaster without a carefully conceived "playbook," we worked with the manager to develop their first ever policies, procedures, and knowledge base. The CEO was impressed but noticed certain items were incorrect, including one item that was the reason he contacted BBC in the first place.

Because we devoted that time and energy collaborating with the organization to develop a solid foundation that could support successful outsourcing and growth, they're still a client today, thriving and growing.

Mistake 3: Failing to Identify Goals of the BPO Relationship

Do you have reasonable expectations for outsourced tasks, responsibilities, and desired results? Measurement is vital to defining and achieving success.

As part of snapscale's due diligence, we identify specifically what we must accomplish to develop actionable results and associated measured goals. This is the first major checkpoint to determine if snapscale and a potential client will be an ideal fit.

Truth be told, we pass on more potential clients than we qualify. We'll enter a client partnership only if we sincerely believe we are a good match and can help the organization meet pre-determined goals in a measurable, cost-effective way.

Of course, expectations are not always certain and need to be learned over time. This can seem daunting, but clients leverage our BPO expertise to find clarity and set realistic expectations and objectives.

We collaborate to develop KPIs and benchmark goals that are mutually agreed upon prior to program commencement. We review the client's progress at scheduled intervals, learn together, move forward, and recommit with new KPIs and goals as priorities change and our partnership develops.

snapscale goes one step further and creates reports with client input so metrics are transparent and understood. Our main reports are generated and distributed daily. We also hold weekly or semi-monthly calls with clients to ensure our services meet or exceed client expectations. This is part of our continuous efforts to address any headwinds that could potentially impede your progress.

The key takeaway here is to plan ahead and partner smart! If you are considering an outsourcing company that does not require agreed upon metrics from the start, keep looking!

Mistake 4: Failing to Properly Vet the BPO Provider

Outsourcing should not be taken lightly. By asking questions about the BPO provider's experience, operations, and track record, you'll see right away if the BPO is the right fit. Here are basic due diligence questions to ask any BPO you are considering.

Due Diligence Questions

How long have you been outsourcing?

Validate that the company has extensive, successful experience in outsourcing. The vendor that improperly handles and oversees specific tasks on behalf of your business can cause operational issues and damage customer relationships.

Do you have your own presence?

The idea of "sending work overseas" can be daunting. Working with a firm that is "brokering" and/or does not have a vested interest in the facility where the actual work is performed adds even more stress to the situation. The "broker" may not be doing anything wrong, but there is only so much that can be managed properly if they do not own or at least have a strong connection with the office.

A significant factor in snapscale's success is the vested interest we have in our offices with managers who have been there for years. This stability and experience allow for greater control over our work, which translates to greater success for your business.

Can I speak to the on-site manager?

If a key member of the BPO management team is not present in the office where the work is being performed, ask to speak with the person in charge. Find out how long the manager has been with the company. You need to determine if the manager is capable of handling your workflow. At snapscale, all clients and prospects have open access to on-site managers in some manner.

Can I speak to current clients?

Before you work with just any provider, ask for referrals. A legitimate, successful provider will allow you to speak with a current client. All providers need a first client, but your organization doesn't have to be the test run! Also, see if they have clients using the services you need.

For example, if the provider only offers outbound telemarketing but you need customer service management, they don't have the experience required to support your needs. This should factor into your decision and could potentially end the interview.

What is your average uptime and what security procedures do you have in place?

Ask the provider to show you their disaster recovery plan and lockdown procedures. Find out how many times they have experienced service interruptions in the past year and what the workers can and can't see. Receiving information that can be validated through referrals will help you build a trustworthy relationship from the start.

At snapscale, we are extremely careful and mindful about the placement of our locations. For example, our Philippines location is in a city far away from water, which means there is limited risk of weather-related issues. Our India location is in a cosmopolitan city with few very brief technology interruptions to date.

Many providers make the mistake of setting up an outsourcing center in a convenient location that doubles as a great vacation spot, which is the opposite of what should be done. Unfortunately, snapscale spends almost as much time helping organizations break free of bad BPO relationships as we do bringing companies into the space. BPO providers must plan strategically and operate in cost-effective areas with access to human capital and high technical proficiency.

Mistake 5: Operating Too Fast

Regardless of how strong the partnership seems at the outset, always take it slow. We recommend acquiring the best resources and ensure business is trending towards the desired results before increasing your requirement. It's much easier to adjust resources and tasks when workflow is light and growing.

This approach will ensure that the foundation with your BPO is sound before you change your current business process any further. Once you start to hit targets and prove the relationship, you can bring on more resources strategically.

Remember, as the BPO relationship becomes intertwined with your business, it will be more difficult to back out. Be sure you are attaining desired results before you decide to deepen your outsourcing partnership.

For example, instead of adding 10 customer service reps right off the bat, start out with two or three. See how the provider handles the workload and ensure the metrics agreed upon are being met or on pace. If they perform, you can always add more reps. If you plan methodically with long-term goals in mind, you won't be stuck.

Mistake 6: Failing to Educate Your Staff

Typically, outsourcing is intended to increase current staff and/or reduce expenses. Outsourced relationships are more likely to fail if in-house employees believe their jobs are at stake. Seeing outsourced staff as a threat, the in-house team may shift to self-preservation rather than collaborating with outsourced staff to improve performance and efficiency.

This is why leadership must position the provider as a solution to specific problems and clearly communicate goals to gain organizational buy-in. snapscale spends a significant amount of time becoming immersed in the client's culture and positioning our outsourced professionals as helpful colleagues who share a common goal and purpose.

Mistake 7: Partnering with a Provider that Does Not Value Its Employees

We've all heard stories of offshore employees working in substandard conditions for extremely low pay. If one person doesn't show up or falls short of expectations, just plug another person into that position. In this type of scenario, cost reduction is the primary driver, and often sole driver, of the decision to outsource.

This is clearly an unethical approach to outsourcing, but also bad business. Churn is a costly cycle of recruiting, screening, hiring, and onboarding employees that drives up costs and negatively impacts performance and the customer experience.

snapscale values and engages employees regardless of location. We offer livable wages, health insurance, paid time off, and significant employee benefits, such as interest-free loans, financial literacy classes, bonuses, and more. We also host worldwide townhalls to recognize employee achievements and seek feedback.

Because we carefully screen and genuinely care for our employees as human beings, they don't want to leave. Our attendance rate is 99%. Our team is comprised of mostly long-term employees who provide our clients with consistency, continuity, and redundancy.

Let Us Help You Grow and Improve through Outsourcing

If you want to avoid these mistakes, partner with an experienced, proven BPO provider that can seamlessly integrate with your team and processes and add value to your operations. Contact us today or schedule a meeting for a free consultation.