Published On: September 29th, 2020 / Categories: Outsourcing / Tags: /

In This Article

In today’s business-driven, networked world, a successful company is often efficient and differentiated from others because it is intelligent, allows for innovative processes and a good management. Process management techniques can be all that a company needs to become a great company. Using methods such as Business Process Management (BPM) and Business Process Outsourcing (BPO) with efficient management and finding a quality outsourcing service provider can bring the change your company needs.

Business Process Outsourcing (BPO) is an innovative process in which companies outsource work processes to external or subcontracted service providers. Outsourcing services include telemarketing, customer services, social media marketing, accounting, data analysis and much more. The demand for BPO continues to grow as companies of all sizes continue to outsource processes; process outsourcing gives companies a competitive advantage. It also allows a company to expand without labour migration, and offshore outsourcing helps promote business abroad without labour migration.

Recognizing the benefits of BPO and knowing how it can be an integral part of a company’s growth is one thing, knowing the practical ways to choose BPO is another. Selecting a supplier is difficult; it usually requires formal and extensive processes to select a supplier with the best outsourcing experience.

This article could bring together the ways to select a BPO effectively, and so on:

Identify your needs and create a list of potential suppliers

Before deciding on a BPO, define your requirements to clarify your list of potential suppliers. Create a list of your activities you want to outsource, such as accounting, payroll, technical support, telemarketing, digital marketing, and so on. Creating a list of requirements would help you identify potential suppliers who can provide the services you need. From a set of suppliers, identify experienced and quality service providers and then request bids from these potential suppliers. You should also identify the major objectives, scope and risks of the BPO.

Choose the right provider

Choosing the right vendor is crucial, as this may or may not determine the growth of your business. I would test the suggestions received and consider the impact and changes that I expect from hiring a vendor, and assess the risks and benefits of hiring a third-party vendor.

Negotiating the contract

Contract negotiations are one of the essential steps in the selection of a BPO. Both parties would have to agree on the terms and conditions relating to the services, the cost of the service, the regulations and the programme of the contract. You should also note that any party acting based on the contract will cause a supposedly friendly society to crack, which will inevitably affect both parties.


The work starts immediately after the contract agreement and you must transfer the work and processes to your chosen supplier. You should have developed a work plan for the transition to the new operating model. It would be best to create opportunities for seamless communication, monitoring and control of processes. You can create a surveillance team to connect and monitor vendors.

The monitoring team would address issues related to the outsourced processes, review reports submitted, answer questions and perform other tasks as assigned. This team should comprise members who understand how to conduct the operation and how operational performance should be at the highest level. With this monitoring team, you can reduce the risk of loss of control and visibility of services within the network.

Prepare for change

For an effective outsource process, you should have made proper preparations for changes that are likely to come up. It is almost inevitable that transitioning of work would bring about specific changes within the network and require appropriate qualifications. Hired vendors might need to be trained and given a proper orientation of the model of operations, company policy, and regulations that govern activities. At this point, every change in management should be done.

Manage your Relationship

State clearly how your role would affect the operations of your vendor. You must verify governance with the outsourcing company while the partnership goes on. Relationships with outsource service providers should be collaborative and should be beneficial to your business. Relationship management is essential for every organization to keep it healthy and helpful, or both parties.

Proper Documentation

“Nothing is truly done until documented.” During the partnership with an outsourcing vendor, every operation, activities, agreement, and other related events should be documented. You should also record every part of the service level agreement; this gives room for proper accountability and transparency. Contract documents and paper works that are drawn should be clear, comprehensive, and lack ambiguity. Proper documentation helps reduce the risk of legal conflicts.

Effective Communication

Effective communication is an essential tool for every partnership. It prevents conflicts and misunderstandings from giving a smooth and healthy relationship between both parties. There should be constant and flawless communication between your business and vendor; this is an avenue for queries, issues, concerns, and related topics to be given proper clarification and explanations.

Performance Reviews

Reviewing the vendor’s performance as regards the services being provided is essential; this helps keep track of the vendor’s performance, and shortfalls would be rectified as soon as possible to make sure the level of performance expected from the vendor is not compromised, and it remains consistent over time.

Overall, every business enterprise and organization should choose an outsourcing service provider carefully. Outsourcing your operations to quality and experienced service providers would help cut costs, improve general productivity, give you an edge to compete in the system, and ultimately improve the company’s growth. It has been established earlier in this article that choosing the right service provider is not an easy task and would require proper planning and considerations to make sure you gain all the benefits of the outsourcing process. Keep the relationship with the service provider formal and adequately managed.

Joydeep SinghaGrowth Expert
Founder at AskDataEntry – India’s leading online virtual administration services provider for businesses and individuals. He is a seasoned marketing professional who is an expert in digital marketing and entrepreneurship.

Tell us your Requirements & Speak to our Experts

We are always ready to help you!

ASK Data Entry has over a decade of outsourcing experience providing a range of data entry solutions to clients worldwide. Our team brings the highest quality and accuracy to every project, while ensuring confidentiality and compliance with global outsourcing best practices.

Start With Our FREE TRIAL

Add notice about your Privacy Policy here.