Challenges with Outsourcing
Sensible clients ask us to warn them about the most common problems that they are likely to have to face and then overcome as part of any migration to an outsourcer. RXP have identified the following 5 common challenges:
- Getting buy-in to outsourcing as the right strategic choice from within your own organisation
- The emotional disruption caused when a decision has been made to close down an existing operation and transfer it to an outsourcer
- Getting the right contract in place to benefit your business and your outsourcer. Many organisations try to drive price down so far that there is no room for development or improvement nor any incentive to do so. The contract should be a win-win situation
- A lengthy transition period from moving your centre operation to the outsourcer. Typically performance can be severely disrupted if not well managed and it may take around 3 months to bed in the new service. Many organisations do not plan for this
- Uncertain volumetrics– when it is your own internal centre, getting the planned volumes wrong may not matter as staff can be redeployed. When it is outsourced it is much more visible, because if the plans are not well defined, then service levels may not be met or service credits may not be applied.
The next question we are then asked is how to overcome these challenges. Each of the risks highlighted does have a mitigation that you can apply:
- Get a strong Executive Sponsor to handle the internal politics and stakeholders
- Define up front what you want the outsourcer to do and what you don’t want them to do
- Engage the operational team who will manage the outsourcer on a day to day basis. Have them involved in the project at an early stage as possible
- Review several outsourcers to identify which is the best business fit for your company (do they understand your brand etc)
- Use experienced call centre consultants to help drive the programme forward if you do not have the skills or knowledge in house
What things can you do to reduce the risk of outsourcing going wrong?
Ensuring that you build a partnership arrangement that provides a win-win for both parties is critical. Ensuring that the outsourced centre is not out of sight and out of mind is also important. Putting a senior executive in charge with defined accountability for the centre will ensure this does not happen. By having the right service level management and governance approach are all key components to reduce the risks.
If you want to discuss outsourcing your own operation and how RXP can help you to overcome these challenges then please Contact Us.
