Survey results indicate that a collaborative, approach toward governance is important to create high performing BPO relationships. In collaborative arrangements, clients consider their BPO provider to be a strategic partner and senior leaders from both sides commit their time to the relationship. A broader stakeholder alignment and involvement of senior leaders mean that high-performing engagements are better able to productively resolve their conflicts than normal engagements. Findings showed:
- Nearly 85 percent of high-performing BPO engagements consider the service provider to be a strategic partner compared to 41 percent of typical engagements
- In 75 percent of high performance BPO engagements, senior leaders from both parties spend time to understand each other’s objectives and strategies compared to 33 percent of typical engagements
- 90 percent of the high performers reported that the client and provider were able to productively resolve conflicts. This was true only with 44 percent of typical performers
Other key behaviors that showed significant differences in results include:
- Making change management a priority: 77 percent of high-performing BPO engagements have successfully executed change management plans compared to just 34 percent of typical engagements. Nearly 85 percent of high-performing engagements proactively refine their objectives as the relationship matures compared to just 40 percent of typical engagements.
- Focusing on benefits beyond cost reduction: 67 percent of high-performing engagements include business benefits beyond cost in the business case compared to 26 percent of typical engagements. 58 percent of high performers will consider service options with greater value, even at higher costs, compared with 31 percent of typical performers.
- Targeting strategic business outcomes: 56 percent of high performers seek competitive advantage through BPO, while only 28 percent of typical performers aim for that goal. 64 percent of high-performing engagements place more focus on capturing other benefits as they achieve cost reduction compared to 40 percent of typical engagements. And more than half of high performers (54 percent) have contract performance incentives in place, compared with only about a fourth (24 percent) of typical performers.
“By adopting the behaviors and practices associated with high performance BPO, organizations can capture significantly greater business value and build new competitive strengths, ranging from accelerated speed to market, enhanced innovativeness and stronger customer loyalty to savvier talent management, and top-line growth,” said Salvino.