Stages of the Outsourcing Process

Stages of the Outsourcing Process for BPO

Business Process Outsourcing, or BPO, holds multiple benefits for organisations. Understanding this process is essential to unlocking the business growth potential it entails. Linked’s superhero team has streamlined this process to ensure maximum benefits for their clients.

What is BPO?

Business Process Outsourcing, or BPO, entails outsourcing business processes to dedicated vendors. These could be back-office processes, such as payroll, HR, and other internal functions, or front-office processes, which entail customer-oriented activities.

What are the Stages of Outsourcing

The outsourcing life cycle typically entails seven stages:

  1. Assessment

First, the business must determine its outsourcing needs. This includes determining the processes to be outsourced, along with the financial and other benefits involved.

  1. Proposal

Once the business’s outsourcing needs are determined and stipulated, they request proposals from potential suppliers. Based on these proposals, the decision is made to outsource all processes to one supplier, or to outsource portions of processes to a range of suppliers.

  1. Due Diligence

The due diligence process determines the capabilities of all partners, underpinning a solid collaborative partnership. This step is critical in ensuring successful outsourcing.

  1. Contracting

During the contracting phase, all aspects of the business relationship are stipulated and details ironed out. This defines all characteristics of the outsourced service.

  1. Transition

Once a final contract is agreed upon, roles and responsibilities are transitioned to the service provider. This process typically occurs in stages, ensuring that processes are still carried out smoothly throughout the transition process.

  1. Governance

The governance stage typically lasts the longest of all outsourcing stages. Here, the supplier carries out all agreed-upon functionalities, taking full ownership and ensuring smooth operations.

  1. Repatriation / Transfer

When the contract comes to a close, all functionalities carried out by the service provider must be transferred back to the original organisation. This repatriation process takes place in stages, similar to with the transition process.

Linked’s superhero team is well-versed in the intricacies of the Outsourcing process. Contact them today for more information on the stages and benefits of Business Process Outsourcing.