Redefining Business Process Outsourcing through Business Process Automation
Service providers worldwide are vigorously investing a great deal of time and effort to facilitate in artificial intelligence and automation as a vital part of the services they offer. The standardization techniques and methods related to Business Process Automation (BPO) services make it a perfect fit for Automation.
Business process automation (BPA) is the tactic a business utilizes to systematize processes in order to contain costs. With uncountable Business Process Outsourcing deals going down the drain for some time now, there are a few notable ideas organizations might wish to consider before streamlining their course of action ahead.
Yes, Business Process Automation is a Reality!
Numerous service providers are adopting services of a BPO company and the percentage of automation through BPO services is increasing as this leads to enhanced margins on outsourcing deals. Having said that, organizations should have a thorough understanding of the terminology “Automation” and its impact on the ROI of the deal.
That’s a win-win situation for all the parties involved.
BPO – “As-a-Service Model”
BPO is a forerunner of the “As-a-Service” design. The basic principles to effectively manage a BPO are:
- Setup standard terms and conditions
- Appropriate authority design, procedures, protocols, and training
- Suitable service levels and corrective actions
If the fundamentals of an organization are not aligned, BPA becomes quite complex and challenging at times. The “As-a-Service” model focuses mainly on the importance of how the organizations should manage the service providers. This means the organizations should have the tendency to welcome change; failure to do so will result in impacting its branding.
The stakeholder’s peak point for BPA
It’s for the organizations to decide and not the service providers as to how much their BPO services need to be automated. Organization may require consulting with their service provider or they might want to consider hiring an independent party to assist them in deciding what the suitable course of action for their needs is. However, before adopting automation, firms should have a thorough understanding of the risks linked to this option for ‘in-scope’ BPA services. Doing such will help to determine the appetite level of automation!
The ripple effects of Business Process Automation
Change is good, but changes inflicted to the working environment that are not handled properly can lead to immeasurable productivity loss or redundant processes. This can be minimized by introducing appropriate practices related to change management which can help at large to handle any kind of changes, be it cultural or challenges per se. Do remember, as much as automation is an enabler, it is also a disruptor. The organizations would very much wish to control the velocity of these changes to its absorption tendency so that productivity remains at par.
Due diligence before and after the BPA deal
Organizations may or may not have different protocols needed for due diligence on vendors before signing off any agreement or services. However, there are only few organizations who believe in monitoring the on-going activity of the vendors. This is highly important at so many levels. One of which is data security. If the vendors perpetrate data breaching, an organization’s services and clients may undergo serious damage. The recent data breach of Equifax and Target are good examples for this.
Third party potential risks
As organizations move ahead to further enhance their services while keeping the costs at bay, the risk factors should always be kept in view. As in financial sectors, regulators are now increasing their attention over third party/vendor management practices. Given the current situation, organizations cannot afford to sabotage their reputation as this may have a long-term impact on the organization’s esteem. Apart from this, the organizations may plan on developing a third party risk management plan to mitigate risks at all levels.
Measuring success rate
The organizations will be more focused on the quality of the services provided and not have to worry about the costs only. Organizations will also need to find out the measurement of their success rate and apply the same towards different service providers providing the same level of services. This will assist them to streamline their strategies as per their needs and SLA’s defined.
The business enthusiasts foresee that outsourcing will be more in the future, as the ratio of companies offering BPO services keep escalating. Therefore, it’s high time for many to try outsourcing, if they haven’t started it yet. For those organizations interested in obtaining the services of a business process outsourcing company make sure you align the needs of your business first.