BPO in Process

Since BPO is a business strategy that requires a definite course of action, BPOStaffing.com decided to take this page to discuss its step-by-step process.

1.Decision-making
To outsource or not to outsource? BPO is a big step and unlike other decisions made within the company, this needs the approval of the Board of Directors. Other things to be considered are the types of business processes to be outsourced and the criteria in selecting the best BPO partner.

2.Submission of proposals
Generally, a special team, formed by the key persons in the company, handles the BPO process. After the criteria are set, they will send out letters (also known as Request for Proposal or RFP) to the possible BPO partners. These partners are then going to submit their proposals which lead to the competition.

3.Competition
After all the proposals are in, the special team will conduct a series of interviews to judge the capabilities of their prospects. In addition to the interviews, the special team can request for presentations and push for a better deal. The prospect company who can offer the best services wins. In short, this is the stage where the possible BPO partners are limited into one.

4.Negotiations
This is between the client (company doing the BPO) and the supplier (its prospect). This involves the original RFP, revised proposals, copy of the “best and final offer” or BAFO, and finalizing all the details especially the pricing structure.

5.Contract finalization
Once the details are finalized, it is written in black and white. No company in its right mind will think that a verbal agreement is good enough. The contract has the makings of the basic legal document. To be more specific, the three essential dates that should be in the contract are the date of contract signing, date of the contract’s effectivity, and the end date of the contract.

6.Transition
The transition period starts from the date of effectivity as stated in the contract and normally runs until four months. This involves the staff transfer as well as the take-on services.

7.Transformation
Transformation pertains to the carrying out of projects which serve the purpose of minimizing total cost of ownership (TCO) and realizing the service level agreement (SLA). The focus of this stage is on centralization.

8.Ongoing delivery of services
This is where the agreement is put into action and this continues as long as the contract is valid.

9.Termination or renewal of contract
Before the contract ends, the client has to make another decision. If majority votes for termination, it means that the partnership is over. This is addressed as insourcing. The client will then look for another prospect to carry out their business processes. Contract renewal means that both parties are satisfied with the arrangement.