Business process outsourcing, or BPO, is the practice of hiring outside vendors to handle particular corporate operations. BPO streamlines non-core duties, giving businesses a competitive edge and enabling them to concentrate on strategic objectives. It is a crucial tactic for contemporary businesses as it guarantees regulatory compliance as well.
As an entrepreneur and HR professional, I know that the bold choice is not only what it seems. I learned the value of vendor/external stakeholder management and the subtleties that need to be attended while leading the HR function, but now that I’m on the other side of the table, this takes a different lens.
Quote:
“The Middle East, particularly in the Gulf Cooperation Council (GCC) countries, have a significant growth opportunity. The industry is changing, and regional demand is taking off GCC’s BPO market will grow by a compound average of 10.5 percent per annum to 2025, making it worth $2.1 billion in 2025 (compared with $1.4 billion in 2021).”
— As per Strategy & Middle East, part of PWC network, Business process outsourcing (BPO) providers.
A skilled corporate service provider is what is needed to stay within the legal framework and avoid getting caught up in the ambiguities of legislation and requirements. A quick view on the ‘why’ and ‘how’ while making the outsourcing decision.
WHY
HOW
Hand holding– Having an organization as your extended partner to handhold you in all compliance and regulations saves hassle or fear of being penalised or missing out . An entire organisation works at your back, giving you valuable advice at every step of your business process.
Time saver– You save immense time in Visas, approvals, labor regulations and the never ending compliances which increases your efficiency in delivering the core tasks of the organisation.
Attention to revenue– Core business is never sidelined and is focused generating more ROI and utilising the running cost of an in house corporate service department in terms of full time employee cost.
Service Level Agreement(SLA)– Outsourcing in the hirerachial pyramid of an organisation can be problematic and tight control can become difficult. A thorough contract is the most obvious way for Operations & HR to enforce a check-in; the contractual components of outsourcing are crucial.
Communication-open, honest and continued communication is key to determining the outsourcing scope; it must be honest, transparent, and continuous. As the project moves forward, give regular updates on its status and set up a channel for comments and candid dialogue. Ongoing communications also help ensure that the outsourcing project continues to receive support. A one point of contact from both sides is mandatory to avoid communication gaps.
Change Management – No matter how well-run an organisation is, change is inherently uncomfortable. The management must inform the staff of the benefits of outsourcing as well as its rationale. The Change advocates in many organisation’s are People Managers, who must constantly explain “what is in it for the organisation to accept the change.”
Strategise by right-sourcing!