Extending the Business Value of Outsourcing

On April 12, 2012, in Outsourcing, by Business Development Group
For outsourcing service providers, the competition has just turned into offering clients not just the obvious cost advantages of outsourcing but in offering outsourcing’s true value through strategic contributions to long-term growth and business sustainability.

For outsourcing service providers, the competition has just turned into offering clients not just the obvious cost advantages of outsourcing but in offering outsourcing’s true value through strategic contributions to long-term growth and business sustainability.

For the past several years, the outsourcing industry has grown exponentially as more companies recognized the cost advantages offered by outsourcing services. As competition among outsourcing service providers intensifies, clients are offered almost similar service advantages from vendors. However, more and more clients are now looking beyond short-term savings.

For outsourcing service providers, the competition has just turned into offering clients not just the obvious cost advantages of outsourcing but in offering outsourcing’s true value through strategic contributions to long-term growth and business sustainability.

Outsourcing services that drive strategic growth, sustainable business benefits and innovation are looking more attractive to clients.  Outsourcing service providers can offer added value to clients through various ways:

Managing Complexity

Using different outsourcing service providers for different outsourced functions will result to a complex business environment. Thus, it becomes vital for an outsourcer to be able to manage complex relationships and deliver diversified services.

Revenue Enhancement

To accomplish sustainable growth, clients are always looking for ways to drive more sales and achieve higher sales profits. Outsourcing service providers can drive more value by contributing strategic information for creating and developing new innovative products, services or delivery channels for the business.

Read related article: Wells Fargo says BPO operations Vote of Confidence in Philippines

Extensive Automation

Beyond short-term savings, clients are looking for sustainable savings through the elimination of non-value-added activities. Eliminating these activities will mean extensive automation of ongoing processes rather than simply offering one-time cost saving solutions that can become irrelevant as soon as certain business and outsourcing requirements change.

Read related article: How to Successfully Transition to Outsourcing

Outcome-Based Contracting

Clients pay outsourcing service providers per full-time equivalent (FTE) or per transaction which means the provider gets incentives for doing more work— sometimes with low quality or are not even useful. An outcome-based contract offers more value in that clients will be paying providers based on their ability to deliver quality service and drive business results.

These are simply a few of the areas that an outsourcing service provider can deliver more value to their clients. By moving beyond short-term savings, providers extend the business value of outsourcing through quality services, sustainable business growth and innovative processes that drive value over time.

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