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Managing Business Process Outsourcing
June 2022 Examination
Q1. Many companies have considered outsourcing a broad range of business processes, including IT services, to achieve critical cost savings. Although this kind of agreement can be structured in many ways, a thoughtful contractual arrangement, with appropriate cost sharing, pass-through mechanisms and pricing adjustments, allows the parties to share certain risks and at the same time establish a productive and profitable relationship. Explain BPO contract negotiation and monitoring and their risk impact? (10 Marks)
Ans 1.
Introduction
Businesses have best currently begun to understand the significance of powerful agreement management. Contracts were regarded entirely as prison files that would handiest be consulted during legal proceedings. Because of this, contracts are used to define the whole client-seller relationship in the IT-BPO industry. This consists of all components of buyer-vendor dating, from prison to business. As outsourcing of non-center and center services has grown exponentially, as has globalization and the creation of recent business models, IT-BPO contracts have become increasingly complex.
Q2. Organizations typically undertake periodic process improvement that are focused on specific business processes and may or may not align with the business strategy. In order to realize all the benefits of sometimes disparate BPM efforts, there needs to be an ongoing, organization-wide effort to assess and measure the results and continue to use the successful implementations. A process portfolio is widely considered the answer. What are the benefits of effective process portfolio management? (10 Marks)
Ans 2.
Introduction
This is the process that project managers and PMOs use to assess the capacity of a project and devise a plan for managing it. The PPM technique consolidates current facts, forecasts pipeline prospects, and gives all the facts in real-time. The unified control method is one in which all projects are handled under a single roof, referred to as a portfolio. The benefits of a holistic approach to venture portfolio control include monitoring the repute and fitness of tasks, their interdependencies, and the overall performance of assets assigned to the tasks. Since task metrics can be up to date in actual
Q3. For ALPHA CallCenter, a leading healthcare BPO company based out of Gulf approached MeraBPO with a requirement to improve their BPO process. The customer’s BPO division handles over a million customer calls every month, but their customer satisfaction levels were plummeting downwards. Even their CSAT was as low as 47%. Since the customer was a part of the healthcare industry, it was unacceptable for the company to find a low level of satisfaction from their customers. MeraBPO’s role was to nail down the causes for the low CSAT levels and then to provide a customized BPO solution that would help the company’s performance to soar.
At the onset of the project, the BPO team at MeraBPO decided to dissect the problem and get to the root cause. Through a detailed analysis, they identified some of the critical issues in the process that were affecting the customer’s BPO’s performance. The following were the requirements of the customer:
There was a linguistic and cultural mismatch between the BPO’s personnel and the client’s customers. The client’s customer base was native Arabs while the BPO employees of the customer (5 male agents and 5 female agents) were not native Arabic speakers. This language barrier made it difficult for the employees to effectively address the culture- specific requirements of the customers
There was a critical need to align the BPO support team with the standard processes that govern BPO functioning. The BPO team also required intensive training in BPO platform management
The BPO’s turnaround time lagged over a period of 7 days in contacting their customers after discharge
The support BPO team worked only 5 days a week (Monday to Friday) and only between
9 am to 5 pm. This posed a serious limitation for the customers who wanted to contact our client
The customers wanted to make sure that they were talking to an Arab agent and would ask the BPO employees for their last name
Female patients of our client would submit contact numbers of the male members of their family instead of their own
The customer reach percentage was less than 2%
After identifying the unique problems that were affecting our client’s BPO, they deployed one their best teams to implement a customized BPO platform. MeraBPO’s skilled BPO team refurbished the entire BPO process of the customer by adopting the following measures:
1. BPO Service Timings: they increased the support time span by a period of 4 hours. Next, they made the support center available from 7 AM to 7 PM. To match the working week of UAE, they decided to change the work days of the BPO to Sunday to Thursday instead of Monday to Friday. Multiple shifts were also introduced to meet the time demand with WFM.
2. Local BPO Agents: they hired a team of native speaking Arabs to eliminate the cultural gaps.
3. Support Infrastructure: they enhanced the infrastructure for the customer’s BPO center and included best-of-breed voice, email and internet facilities. This helped in substantially reducing the turnaround time of the BPO team.
4. Value Added Support Services: they also offered a host of value added services, such as the following:
they extended the 24-hour call support for excess processing requirements during peak hours
The BPO agents were given customized ‘Last Names’ to suit the caller’s country
The DID number was masked based on the caller’s country
The BPO agents were given 20% hand-outs
Culture specific provisions were specially created to record rebuttals from the objections raised by the male family members of female patients
The BPO process of the customer was continuously improvised and enhanced based on
Lean and Six Sigma methods
The database of the customer was always kept up-to-date
The BPO application was rectified periodically
Within a short time span of just 2 months, they were able to present the following results to our customer. From an unsatisfactory 47% the CSAT galloped to a whopping 85% – 87%.
The turnaround time was improved by 24%.
a. What were the cultural challenges faced by ALPHA call center and how were these specific cultural challenges met by ALPHA call center (5 Marks)
Ans 3a.
Introduction
Healthcare BPO company Alpha call center approached Mera BPO to assist with their BPO procedure development. Extra than one million consumer calls are responded to every month through the BPO department, yet client satisfaction turned into a declined. Consumer dissatisfaction with the company’s service turned unacceptable because the client turned into healthcare professional. Mera BPO became tasked with figuring out the foundation causes of the organization’s lousy customer delight before recommending a specialized BPO solution that could increase its overall performance.
Discussion
Internal communications, some
b. What are the advantages of outsourcing call center operations of a hospital to a BPO like ALPHA call center? (5 Marks)
Ans 3b.
Introduction
A manager’s attention and time are restricted in each firm, which is especially authentic for small organizations. Payroll, as an example, maybe delegated to a third party, releasing up the business proprietor’s time and strength to awareness of the marketing and sales operations which are maximum essential to the company’s long-term fulfillment.
Discussion
Healthcare firms can also focus all their time and effort on imparting special affected person care if they outsource their non-core tasks. This improves their productiveness and profitability. Outsourcing gives healthcare firms an
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