Considered as a predominant model, outsourcing helps businesses compete in both local and global markets by subcontracting non-core functions to third parties. As oppose to businesses during the 1950s and the 1960s when companies demonstrated their profitability with large corporate offices and warehouses, today’s businesses demands models that are lean, fast, innovative and highly competitive.
Joining ranks, businesses are developing a business plan that demonstrates the feasibility of administering and managing an outsourcing company. This is especially essential for seeking funding sources and for making long-term financial projections. Unlike conventional business plans, BPO business plans includes a feasible outsourcing strategy that includes sections highlighting the process and procedure for developing a contract as well as sourcing its management team. Business owners must decide on the type of relationship that they wish to develop with their provider and the level of service that they expect from a provider.
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Almost the same to a standard business plan, the BPO business plans includes an executive summary highlighting the purpose of a project, the type of service or product that is being provided, its potential competitors and upcoming trends related to promoting the said service or product. Other important component of the executive summary for BPO business plans includes the operational plan and description of the management team, capital requirements as well as financial projections for the previous years.
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The BPO business plan includes data from market research or surveys that support the viability of the project. At least it should include market shares as well as current trends, products or services and its distribution channels, the marketing and promotional activities and copyright or cost of production, all helps in strengthening the projections and feasibility of the said project. BPO business plans should also include how factors, such as economic conditions, legal and regulatory channels, and changes in technology and social transformations will positively or negatively influence a project.
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A BPO business plan should set the duration of the outsourcing contract, which can be subject to periodic renewals. Upon outsourcing the business, companies must realize the amount of time that it takes to develop the relationship. The BPO business plans includes the operational strategy, which is in the form of a contract and a time line. An outsourced service should be long enough to make a financial difference.