Heya, Hope you liked reading my previous post on Sales Suspecting. In this article, we shall discuss a detailed guide to understand the Business Process Outsourcing business and how to win BPO deals from the organizations willing to outsource.
Let us get started...
What are BPO deals?
BPO stands for Business Process Outsourcing. It refers to the process of contracting some of the standard & repeatable business processes of the organization to a 3rd party vendor or so called BPO firms or consultant.
BPO deals are usually categorized in 2 major categories:
- VOICE PROCESS – This majorly deals with handling calls for the client which might be related to customer service, outbound sales calls, or any helpdesk based Call center process.
- NON-VOICE PROCESS – This business process deals with all types of backend paper work, documentations or analysis, related works.
Industries which provides BPO Contracts:
Almost all major industries provides outsource their business processes. Some of the notable ones are:
- Banking, Financial services and Insurance (BFSI)
- Media & Entertainment
- Real Estate
- Retail and e-Commerce
- Energy & Utilities
- Transportation & Logistics
Major types of BPO contracts given:
Here are some of the types of Business Process work usually being outsourced to BPO firms:
- Call Center Services
- Data Entry Services
- Engineering Design Services
- Finance, Accounting & Taxation processes
- Healthcare BPO Services
- Insurance BPO Services
- Market Research & Analysis processes
- Mortgage BPO services
- Legal Process Outsourcing
- Photo & Video Editing services
- Transcription and Translation Services
What do companies look for while outsourcing BPO contracts?
Organizations which tend to award business process outsourcing contracts, tend to evaluate the BPO vendor firms on the following selection criteria (though this is not the only complete list, there can be few more parameters as well).
- Expertise: The Industry or domain expertise of the BPO firm
- Services Offered: The types of business process services the firm provides or has delivered in the past.
- Staff: The number of employees in the firm who can carry out their business process.
- Client base: The major clients for which the BPO firms cater to, It can provide a testament of the quality of the work the BPO firms deliver, but at times if you are catering to any competitor of the prospect organization without much data protection and privacy policies in place, then it shall backfire.
- Rates: The price point at which you will deliver the process whether it is hourly rate or a fixed rate or transaction based rate based on number of tasks completed or processed.
- Financial Statements: This is assessed to find out the financial stability of the firm, since if the financials of the firm are weak then it presents a risk for an organization to hand over their critical process fearing what will happen if the BPO firm goes out of business suddenly.
- Data Security Frameworks: Since the BPO firm will have direct access to some of critical data of the Organization, they tend to evaluate the measures and policies the BPO firm has put in place to protect their data.
Why would an organization be interested in outsourcing BPO contracts?
- Cost Reduction: Hiring a big permanent workforce and office involves a huge Capital Expenditure. The organization can reduce that overhead cost by outsourcing the business processes.
- Quality of Deliverables: The work done by good professional BPO firms would be of better quality compared to it being delivered in-house. This is because the BPO firms are having relevant experience working with multiple clients in the same domain with expert and experienced staff who can deliver more efficiently and accurately.
- To focus on core business: Outsourcing some of the non-core activities to a professional firm helps the organization to free up some of their resources so that they can focus on activities involving their core line of business.
- Scalability: When an organization want to scale up to new markets or businesses, situation will arrive where they need quick help of local experts who can help them scale faster. That’s where the BPO firms come as a savior.
How to get BPO deals from an organization?
- Go around prospecting from your lead list and reach out to the Organizations where you are comfortable with their processes.
- Request for their qualification criteria for providing BPO services.
- If you meet their criteria, talk to all key stakeholders or the owners of different business processes in multiple departments.
- Based on their Needs and your Strength mapping, try asking for a Pilot BPO project to one of the decision makers.
- Show some case study as a testament to your past project with another Client.
- Execute the task with high quality deliverables and go back to the Client stakeholder asking for more outsourcing assignments.
- Demonstrate the work done in Pilot project to key decision makers in other departments where you foresee opportunities for process outsourcing projects to win more deals.
What are the KPIs for BPO delivery?
BPO firms are evaluated on multiple Key Performance Indicators and metrics to assess their deliverables. The important ones are listed here. These are important for a BPO firm since the better are your KPIs, the better is your chance to keep winning newer opportunities from the existing Clients.
- Quality of Deliverables.
- Time Taken to deliver the project.
- Ability to accommodate project scope changes.
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By: [email protected]
Title: Guide to getting Business Process Outsourcing (BPO) deals
Sourced From: blog.toolsoncloud.com/feeds/241952166537664347/comments/default
Published Date: Sun, 08 Aug 2021 14:28:00 +0000
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