A winning formula for navigating outsourcing partnerships
As businesses of all sizes are continuously seeking to streamline operations and boost team efficiency, it’s no surprise that outsourcing is on everyone’s mind. Leaders that deploy the right strategies to effectively manage BPOs will see the highest return on their investment.
In a recent webinar, John Glantz, VP of CX Transformation and Outsourcing at InflowCX, and Kyle Underseth, Enterprise Sales Leader at Assembled, sat down together to discuss the most effective ways support teams can manage their BPOs. They covered current trends, advice for successful relationships, and the benefits of using a multi-supplier approach.
Getting the lay of the landscape
Whether they're managing 50 agents or 20,000, support leaders are increasingly turning to outsourcing. They're leveraging it to support new channels, expand product lines, extend operating hours, and offer diverse language support. The driving force behind these moves is the pursuit of efficiencies. And no, it’s not just about cutting costs. It's about achieving the sweet spot where cost meets top-notch performance.
For many companies, this is their first foray into outsourcing, while others, more seasoned, are looking to switch things up or give it another go after a previous attempt. The biggest challenge is navigating the unknowns — selecting the right vendor and setting the right criteria can feel like hitting a moving target in today's fast-paced environment. What's driving these companies? The need to cut service delivery costs amidst economic uncertainties and the desire to tackle specific operational challenges like scalability and staff flexibility.
Turning BPO vendors into copilots
Building and maintaining strong outsourcing relationships requires a strategic approach — and that all starts with treating your BPO provider as part of your team. Assembled and InflowCX recommend some key strategies for elevating BPO management:
- Understand current operations: At the onset, get to know your current operations and costs inside and out. This involves more than just knowing hourly rates — it's about comprehensively documenting requirements and aligning potential suppliers to those needs.
- Be selective: Avoid the common pitfall of choosing the first outsourcing provider you find online. A strategic selection process, grounded in documented requirements and a deep understanding of the marketplace, is key to long-term success.
- Ownership and accountability: You should own your outsourced operations by assigning clear responsibility for managing the relationship and tying incentives to performance.
- Data alignment and transparency: Ensure you and your provider are on the same page with metrics and performance indicators. Regular, transparent communication is essential for navigating challenges and making informed decisions.
- Internal and external collaboration: Collaboration is vital. Work closely with your outsourcing provider, especially when the going gets tough. Internally, make sure you can justify budget needs and performance goals to keep everyone aligned.
Redefining the rules of the road with a multi-supplier strategy
Adopting a multi-supplier strategy can offer significant benefits, especially as organizations grow.
Effective multi-supplier management starts with data. You need to normalize and integrate data across different vendors. This involves allocating requirements, commitments, and schedules in a standardized way to keep everyone aligned. Establish clear commitments and success metrics with each vendor, understand their capabilities, and ensure they meet your needs. This helps manage expectations and ensures reliable service delivery.
A champion-challenger strategy, viewed with a long-term lens, can drive high performance. Avoid monthly volume shifts and focus on fostering healthy competition over time. Geographic diversity is also crucial for mitigating risks and ensuring business continuity. Additionally, leverage specialized providers for specific capabilities or language requirements to enhance service quality.
Tech integration is a must. Tools like workforce management, vendor management, and AI all belong in a comprehensive strategy to streamline operations and boost collaboration among multiple suppliers, leading to improved efficiency and performance.
Ready to see what strategic vendor management looks like? Get in touch today.
