By Alfredo Atanacio, co-founder of UassistME.COM / Inc. 30 Under 30 2012 / AGLN Fellow.
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Do you know how significant the business process outsourcing industry is to major businesses nowadays? From online giants like Amazon to finance powerhouses such as JP Morgan, BPO companies played a big part in making them efficient and relevant in the world economy.
The BPO industry is valuable because it helps businesses delegate operations without the risk of restructuring or spending for expansion. With many BPO companies emerging, business leaders need to know what to look for when partnering. Here are a few things to consider:
Check the net promoter score.
It is only logical to look for experience when choosing a potential BPO partner. You should also know the quality of their work. Fortunately, there is a metric for their track record.
This is called the NPS, or Net Promoter Score. NPS is used to measure the loyalty and satisfaction of customers. There is also an NPS for measuring the loyalty of employees as well. It usually takes the form of a survey given to willing respondents, and you can gather data from it.
How is NPS connected to a BPO company’s experience and quality? If customers and employees are satisfied, it reflects the BPO company’s output quality. Furthermore, how that company handles tasks and delivers what the customers need or want speaks volumes. You can do more research, but looking at the NPS is a great start.
Choose a BPO partner with a wide range of services.
In choosing a BPO company, I don’t recommend using different ones for different sets of tasks. You should seek a BPO company worthy of being your partner in all your business operations for the long run. The most obvious reason is that once you transact with a BPO company, they will have nearly full access to your confidential business documents.
With that in mind, you should choose a BPO partner that offers a wide range of services. Comparing the nature of your business to a BPO company’s services might not be enough, though. You need to anticipate what your company will need in the future and if that potential BPO company has the services to back you up. Let’s differentiate the two major types.
• Back-office BPO. These are processes done behind the scenes. Your customers don’t see these processes but can definitely feel the results of the quality of work. Back-office BPO services include accounting and finance, data entry and human resources.
• Front-office BPO. These are services that directly deal with customers. The customers of the business can automatically assess the service quality. You might know these as “call center agencies.” Examples of front-office BPO services are product or brand marketing and customer support.
Check the infrastructure.
As mentioned, a BPO company will have access to your business documents once a partnership is established. Therefore, you must be cautious about selecting BPO companies with weak infrastructure. What does this mean? If their technological capabilities are unstable, they might be prone to a security breach.
Moreover, technical difficulties can take time to resolve, which is already an opportunity cost for the business. This may be difficult to figure out as a business leader seeking a BPO partner, but you can start by inquiring. Also, don’t disregard any history of a BPO company that violates privacy commitments.
Choose a BPO partner with ‘high-touch’ services.
Now that you’ve ensured that the BPO company’s technological capabilities are on par with your expectations, it’s time to evaluate their processes in utilizing them. This means that the BPO company should utilize its capabilities to provide the best customer service.
If a BPO company has advanced infrastructure yet lets people wait in a long phone queue, that’s a red flag. The term “high touch” means ensuring the customers are taken care of. This is very relevant to front-office BPOs since there is a lot of customer engagement involved.
High-touch services aim to increase customer retention and decrease customer frustration. You can inquire about this as you meet your potential BPO partner and discuss the nature of their customer engagement.
Ensure there are good transition plans.
Many partnerships are quickly destroyed due to poor transitional plans. If a BPO company has such a history, there is a chance that it could happen again. Failures in transition can cost money without any operations done successfully. Furthermore, many aspects of your business might be exposed to competitors.
Good transition plans involve ample time and clear details. It is better to transition in stages so the BPO partner doesn’t get overwhelmed with the influx of responsibilities. Clearly stating the details can also reduce confusion in the dynamics of the business. For companies located in North America, I highly recommend considering nearshore companies.
Ensure there is a great organizational culture.
The culture of the BPO company reflects how committed they are to delivering the services they claim to offer. The clearer the organizational structure is, the more assurance you have of their technical know-how. It is also a great plus if their quality control department is equipped with capable personnel.
You can investigate their culture not just through reviews but also by a simple company visit. You can observe their atmosphere and gauge their professional conduct. Furthermore, if the company implements regular training and development of their staff, it is safe to say that they are thinking of long-term growth and stability.
If you’re still feeling lost, it may be helpful to have someone you trust recommend a reliable BPO partner. You can start your investigation there, and soon, you’ll discover more. Be careful in taking huge risks since almost all your business transactions, documents and processes are at stake here.
