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Optimise Your Business with Process Outsourcing
Business Process Outsourcing (BPO) is an extremely effective way of reducing costs and accelerating business growth but getting the right mix of competencies, processes and timing is key to success. With savings ranging from 30-70% it's an attractive proposition but, as with any major project, work must be done up front to ensure the best results. It also needs to be implemented as a strategic development, not a quick fix solution.

Is Outsourcing an Option?
It's important to ensure there is a fit for your business in the first place, and that the right capability is outsourced in the right way. This is clearly subjective but below are some guiding principles when considering a move to BPO:

  • Size of the prize
  • Rate of growth
  • Impact on business
  • Level of competence
  • Cost pressures
  • Business priorities

If your organisation has an employee strength of between 50-100 and is tracking a growth of around 4-6% it's probably not the right fit and could result in destabilising your business. On the other hand, if you have outsourcing potential of more than 50 roles OR are growing at breakneck speed, then outsourcing can add significant value.

What can be delivered through outsourcing?
Whilst BPO is often seen as a cost initiative a successful outsourcing engagement should be delivering significant benefits over and above pure cost reduction. Process improvements support business growth in a number of ways:

  • Efficiencies through increased internal focus on core competencies
  • Improved back office processes and outputs
  • Continuous improvement through partner expertise
  • Increased opportunity and agility for growth
  • Access to experts

Which Processes to Outsource?
While the market is constantly evolving there are a number of key areas that are well suited to BPO and many businesses are seeing transformational change through outsourcing some or all of these functions:

  • Finance and Accounting: Accounts Payable, P2P, Reporting, Accounting
  • Analytics: R&D, Big Data, Modelling, Virtualisation, Text Mining, Infrastructure, Statistics & Reporting
  • Customer Interaction Services: End-to-end call centres, email, chat and social media, plus advanced analytics management
  • Governance, Risk and compliance: Fraud Detection, Anti-money Laundering, Reporting, Compliance Monitoring
  • Human Resources: Transactional Activities
  • Information Technology: Service Desk, Infrastructure Management, Datacentre, Security, Procurement

Successful Delivery

Outsourcing business process is not a decision to be taken lightly and is one that needs full business buy-in. Once you have decided that outsourcing is an option the following steps are recommended for successful delivery:

  • Ensure C-Level buy in and sponsorship
  • Agree contract management model and metrics up-front
  • Define KPIs to measure progress and success
  • Consult with HR and clearly communicate with employees at the right time
  • Put in place effective contingency planning and where possible phased implementation
  • Support from an independent expert can be useful to facilitate smooth delivery

Partner vs Supplier
The goal is to achieve more, cost effectively and in shorter timescales, through engaging third party experts and utilising their people, process and technologies. BUT a collaborative approach is essential and this needs to be driven from the top down to ensure success. For an outsourcing engagement to deliver it needs to be viewed and operated as a partnership from the outset. Senior management support is vital and it should be implemented with a strategic view of the business. Your outsourcing partner should be very clear on your goals and how they are going to get you there, working with you and your teams. And if your organisation views outsourcing companies simply as suppliers or contractors then re-education may be required.

What to Look for in a Strategic Outsourcing Partner
You should be looking for a partner that is committed to best practice, offers operational excellence and who ideally has expertise in your industry sector. As part of your due diligence, and depending on your requirements, you might want to ask your potential partner about their capabilities and successes in the following areas:

  • Industry vertical expertise
  • Lean sigma, Business Process e-Engineering & Operations excellence
  • Digitisation, Robotic Process Automation (RPA), self-service, Process Enhancement Technologies & Services (PETS)
  • Self- service analytical / reporting solutions
  • Data and information governance
  • Enterprise-wide revenue and profitability enhancement
  • Delivering simplified & robust control environment
  • Supporting businesses to move from an unstructured to a structured environment

PEPCO partner with WNS Global Services, who are a world leader in Business Process Management. They take on non-core processes for businesses delivering efficiencies, reducing costs and enabling growth. Some examples are:

  • Finance: Reduced unallocated cash by over 50 percent in six months for a leading provider of information and telecommunication solutions for the air transport industry by transforming their debt collection processes
  • Customer Engagement: Reduced the customer query resolution time from 12+ hours to under 40 minutes for a Nordic travel agency by transforming a social media channel from the medium for complaints to the preferred medium for customer service
  • HR: Supported a leading UK retailer to transition 154 processes for 240,000 employees and run a HR shared services centre; resulting in a 35% reduction in operating costs
  • Risk & Compliance: Designed ensemble models using machine learning and NLP algorithms to identify and classify fraud enabling a global insurer to save over $80million by reducing bodily injury claims fraud

WNS Customer Testimonial
'WNS have supported Moneycorp in helping us develop a business operating model to gain efficiencies and support our ongoing business growth. The partnership with WNS has evolved over the last 3 years over a range of functional areas and business needs. The responsiveness, flexibility and subject matter expertise make WNS a great partner for Moneycorp.' - Nick Haslehurst - CFOO, Moneycorp


If you would like to find out more about business process outsourcing please contact Mark Russell: 0203 008 7585 or mark.russell@pepcoservices.com




Find out more about TrueValue and how it could strengthen your procurement processes.
Call us on +44 (0) 20 3008 7588 or email us at
truevalue@pepcoservices.com
Find out more about TrueValue and how it could strengthen your procurement processes.
Call us on +44 (0)20 3008 7588 or email us at
truevalue@pepcoservices.com