Consideration 4: Is everyone equally committed to best practices?
Best practices and process optimization ensure the provider will save money. But some providers do not implement best practices, or their customer organizations do not allow them to do so, which means that sometimes the provider's business practices must be taken into consideration as well as the cost of a bid. A firm that does not implement best practices can be risk for the buyer, if the provider is running things on band-aid solutions. Conversely, a provider may be frustrated when dealing with a firm that does not instate best practices, or has a different definition of what best practices are.
As an example, Kathleen Goolsby cites "a tiered service delivery in HR BPO would see a sequence of tiers that the users encounter (tier 1 being call center reps using scripts, tier 2 being staff that have the ability to answer more questions, and tier 3 being experts. Best practices would ensure the user stays, whenever possible, in the lower tiers, as they are more cost-effective" (Goolsby, 2007). But the firm using the outsourced call center might prefer that more calls are direct to high-quality users, and that more high-quality staff members are present at the call center during peak hours, to ensure that customers gain a better sense of quality assurance from the company, and thus are more likely to patronize the organization.
Although using only tier 1, or "scripted" and inexperienced...
Best Practices in Outsourcing the Advertising Best Practices in Outsourcing Advertising: Outsourcing is the most prevalent strategy companies are using today to control costs, increase their time-to-market, and gain access to expertise they may not be able to afford on their own. Outsourcing advertising and other areas of marketing reduced one large banks' budget by 40%, with smaller banks gaining a 30% cost improvement using outsourcing over hiring and retaining their own
Transitioning of the Defense Transportation System Toward Complementing Best Practices in Supply Chain Management Efficiently and Securely Distribution managers need to appreciate that management of defense supply chains is a rapidly-growing global phenomenon, with an overlap existing in management levels; right from the strategic national-level stakeholders to lower sustainment units at the activity levels. Strategic distribution changes have the potential of immensely impacting tactical implications. This paper aims to help
Changing the Defense Transportation System in Order to Complement Best Practice in Supply Chain Management Distribution managers need to come to the realization that defense supply chain management is a worldwide phenomenon that is fast and that there is an overlap in the management levels; from strategic national stakeholders to the sustainment units below. Changes in strategic distribution decisions can have profound effect tactical implications. This paper seeks to back globally
Contracting officers today must have the skills or competencies required to become the business leaders of the future (Steele 2000)." An article found in the ABA Banking Journal asserts that Chief Information Officers are interested in it outsourcing because companies are able to acquire it skill sets that may not be present at the internal level. In this article Siemers (1995), explains that One of the reasons CIOs believe that
A micro considers the interests and rights of the individual company as the primary concern. Both of these views are valid depending on the lens that one wishes to use. The problem arises when the government is forced to develop policies regarding procurement in this volatile debate. The government must decide whether to take a micro view, favoring the rights of companies, or a macro view that places the
If you don't do them well, you can't compete, but doing them better than anyone else provides limited benefit. Companies should carefully examine these tasks for outsourcing opportunities, keeping in mind that they may require the outsourced resources to have specialized or more developed skills. Activities that are necessary, but a commodity level of service is sufficient - Commodity tasks are necessary for keeping a company functioning, but they do
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