BUSINESS PROCESS OUTSOURCING (BPO)

1. Thoroughly analyze your process so you know your costs, and can determine the cost savings of outsourcing over a specific time period.
2. Define roles and responsibilities in the outsourcing partnership, so there are no surprises, and so that goals and expectations are clear to both parties.
3. Have measurable performance objectives-the speed of transactions, the time period to close the books, etc.-and establish performance incentives, both rewards and penalties, for meeting those objectives.
4. Develop a detailed transition plan to ensure a smooth hand-off. Outsourcing is a major undertaking that benefits from careful advanced planning.
5. Establish a clear dispute-resolution process to handle issues as they arise. This makes for smoother operations and doesn’t make every issue a contractual or legal problem.
6. Monitor results for continuous improvement. Arrange long-term contracts on a yearly renewal basis, so there is an annual review of an outsourcer’s performance.