What is business process outsourcing?
Business process outsourcing is a strategic initiative that organizations take to employ external resources to handle business processes that are non-core but critical to an organization's interest. These functions or processes, which were traditionally handled by in-house resources, are delegated to an external party with specialized skills to perform them efficiently.
At a basic level, BPO services could be back-office operations, like human resources or finance and accounting processes, or front-office services like customer relationship management and contact center services.
What are the benefits of outsourcing?
The primary drivers for outsourcing are reduced costs, better utilization of available resources, quality service, faster time-to-market and an edge over competition. Some of the major benefits of outsourcing are:
- Reduction in operational costs
- Flexibility to focus on core functions that generate revenue.
- Scalability, 24*7*365 support
- Access to latest technologies, skillsets and knowledge without bearing the cost
Who/ what kind of organizations outsource?
Outsourcing has gained momentum over the last decade and half. It is no longer limited to large or Fortune 500/1000 organizations. Even small and mid-sized organizations are outsourcing to keep their operational costs under check. After the recession of 2008-09, it has become all the more important to keep operational costs under control, leading to more and more organization outsourcing part of or entire non-core operations.
The annual Computer Economics survey of more than 200 IT organizations found that among small and midsize organizations that outsource at least part of one IT function, the percentage using offshore service providers rose from 42% in 2012 to 54% in 2013.
What functions/ services can be outsourced?
Outsourcing is primarily of two kinds: software or technological services outsourcing and business process outsourcing (BPO). Here we take you through some of the BPO services. Typically, any function that doesn't require physical presence of the staff in the premises can be outsourced. Services like Customer Service, Finance and Accounting, Billing and Invoicing, Data Management, Telemarketing and Human Resources are some of the functions that companies outsource. As organizations identify newer processes to outsource, the list of BPO services continues to grow. SkillSource provides BPO services in the following areas:
- Accounting and Book Keeping
- Back office operations
- Sales and marketing including tele-marketing
- Customer contact center
- Data collection and report writing
- Healthcare benefits processing
- Insurance processing
- Customer relationship management
How does SkillSource ensure overall security of my process and sanctity of data?
SkillSource places paramount importance to data confidentiality and takes all measures to ensure that the customer's data is secure with us. Some of steps that we take to ensure data confidentiality are:
- Background checks: SkillSource runs background checks for all its new employees. We conduct checks on education, work experience and criminal records to ensure that people with good track record enter our system.
- Stringent security policy: SkillSource has a stringent security policy that each employees signs up on the day of his joining. We follow a strict protocol in terms of not allowing external storage devices like hard discs, pen drives etc. to our premises. Thorough frisking is done to ensure 100% compliance.
- Security of Servers and Systems: Our servers are 100% secure. Regular patches and updates are installed to secure it from attackers and malicious codes. Our servers are kept in highly secure areas with access strictly limited to the authorized people. We install firewalls to prevent any virus attacks. Access to sites is limited to only work related areas and is granted on need basis.
- No pen and paper in the work area: SkillSource doesn't allow its employees to carry pen & paper to the work area. Any writing is permission based and papers are shredded after the work is done. The supervisors ensure that it happens without fail.
- Surprise Audits: We conduct checks regularly to ensure that no data is compromised. We encourage our clients to proactively audit our office to ensure they are confident about our security policies.
How does SkillSource guarantee quality of service?
Maintaining service quality is a must for measuring efficiency and effectiveness of business processes. Some measures we take to ensure great quality of service are:
- Talent Management: The most important aspect of providing quality service is hiring and retaining the right kind of people. Because it's a people intensive model, we place great importance on continuous training & audits. We go to great extents to keep our workforce motivated to perform at their optimum.
- Adherence to SLA's: For us, SLA's are the last word in a customer relationship! We ensure 100% adherence to SLA's all the time. Regular reviews and reports ensure that we are always calibrated in terms of expectations.
- Process optimization and Continuous improvement: SkillSource believes in regular analyses and adoption of best practices to ensure continuous improvement and process optimization. We always get back to our clients suggesting changes that can be made to an existing process. All our improvements are strictly based on client consent.
Does outsourcing mean you have to lay off people?
Absolutely not! Outsourcing in no way means taking away jobs. It helps you in gaining competitive advantage by getting your work done from a low cost center. Rather, outsourcing frees up your resources so that you can deploy them in revenue generating activities. As margins continue to shrink and the pressure is on organizations to get leaner, outsourcing helps you take off your non-core functions and deploy people in core activities. Moreover, the savings from outsourcing non-core processes gives the organization more scope in enhancing the salaries of existing workers and creates a more motivated and fulfilled workforce .
For example, a sales guy should spend more time meeting prospects and following up. If he starts cold calling, it will take away a lot of his productive time. Outsourcing the cold calling activity ensures that the person is more focused and meets more people.
How do I maintain control of my business when I outsource to SkillSource?
SkillSource gives you 100% control of your operations. Every client engaged with us has a dedicated team that reports to it. You have full control over the staff and can hold them accountable for anything related to your process. We have managers and supervisors that report directly to you, all the while maintaining quality and standards expected from them.
What unique benefits does SkillSource have that differentiates it from its competitors?
We have worked hard over the years to create a niche for ourselves. Some of the unique advantages that SkillSource brings to the table are:
- Experience: We have more than a decade of experience in providing BPO services. Over the years we have developed best practices and tools to augment our business processes.
- Solutions aligned with customer needs: We understand our customer's needs and align our solutions accordingly. This helps our clients better their customer relations and satisfaction levels.
- Partner approach: SkillSource looks at every engagement as a partnership. We believe in transparency, clear communication and sharing of best practices that can benefit our clients.
- Managed Efficiencies: SkillSource gives you cost effectiveness while continually improving customer satisfaction levels. This helps clients in achieving high quality at a low cost.
- Multichannel Solutions: SkillSource supports all modes of customer communication like voice, chat, e-mail etc. to match the growing customer needs.
- Scalability: We have the ability to scale up or ramp down at a short notice, leading to high levels of operational flexibility and better handling of spikes in volumes.
What are my immediate and long term benefits?
- Savings of 50-65% on your operational costs, leading to improved bottom line.
- No regulations, salaries and rising costs to worry about.
- 24/7/365 support across multiple channels
Long Term Benefits:
- Operational optimization
- Ability to handle larger volumes of work
We like the idea, but are unsure. Can we do a Pilot Project?
Yes you can! SkillSource provides you the opportunity of doing a pilot project to gauge our capabilities. For many of our services, we have a limited period arrangement where customers engage with us to experience our services. If satisfied, they enter into full term contracts. That we convert 9 out of 10 projects we take on pilot basis, tells a lot about our efficiencies and the trust our clients place in us.