Business Processing Outsourcing (BPO) is the redistributing certain repetitive and exhaustive non-core or sometimes even core business activities to a third party service provider. BPO helps in improving business performance through distributing time, effort and money outside and rather focusing on strategies pertinent to business
There are a few secret tips and rules that are known only by the industry insiders. Today Mitul Palan, the co-founder of Brainworks Private Limited and a leading name in the world of Business Process Outsourcing would share his insight and the tips he has amassed all the way.
1) Evaluate Your Reason For Outsourcing
Before you begin to evaluate how, what and where to outsource make sure that the reasons behind your decisions are just and in sync with the overall theme of your company. It is crucial for you to come up with a definite plan and proposal before you push the idea further. You need to provide your employees, vendors, stakeholders and in some cases, even clients the need behind your move.
2) Which Tasks to Outsource?
The biggest challenge any enterprise faces when making an outsourcing decision is to decide which tasks it needs to outsource. According to Mitul Palan, Mumbai, only those business activities should be outsourced that will not require your company’s personal touch, the tasks that don’t match up with your strengths, and on top, those that can be inexpensively undertaken.
3) Take Baby Steps
Most new companies in order to extract maximum benefits from outsourcing tend to make hasty decisions like giving larger chunks of activities for outsourcing. What is suggested though is to make small decisions and to get comfortable with the whole idea of outsourcing. Only when you have established your footing you can reap benefits from it.
4) Consider the Cost Requirement
Any business undertaking involves the exchange of money. While many companies need for outsourcing is saving money, it is to realize that it is more of a future oriented aspect rather than a short-term benefit. Mitul Palan advices all corporates to save money in the initial months of your partnership with an outsourcing third unit.
5) Consider the Right Help
In a bid to save time and effort many companies fall into the temptation of hiring the first party they interview. Mitul Palan, Mumbai advises to first interview and meet multiple parties and outsourcing units. Only when you have made a thorough analysis of each of their strengths, weaknesses, the quotation demanded, you should make a decision. The key should be to choose that company whose specialization matches up to your need.
6) Don’t Lose Control
A blunder that most businesses do once they hire outsource company for their work is turning a blind eye towards their operations. According to Milan Palan it is crucial for a company to remain in touch with the activities you have outsourced. He suggest that the best way to do this is to employ minimal staff to overlook this relation. These managers should be skilled in their field should understand the broader vision of your company and ensure everything works according to it.
7) Draft A Legal Contract
The most crucial aspect of outsourcing is drafting of a legal framework within which both you and the outsourced company would undertake the activity. The drafted contract should outline specifically about payment, rights, expectation, roles and duties, termination clause amongst others. It is imperative to have a lawyer draft or even review any contract before you sign it.
These tips, given by Mitul Palan, Mumbai should be kept in mind when outsourcing any business activity to ensure success and growth of your company!