The process of outsourcing business processes has been practiced since the advent of the digital era. Through the ages, companies have witnessed the benefits of outsourcing and how they are gradually depending on them for their success. Choosing a relevant outsourcing agency is indeed a daunting task; however, it is very important to measure the progress and track the progress of the final deliverable served by the agency. Measuring the outsourcing vendor’s performance against a few pre-defined KPIs is very important for the success of outsourcing. In this blog, we are going to explain how to select KPIs, how each KPI works in measuring a specific aspect, and its importance in service delivery.
KPIs for Measuring Success of Outsourcing Business Processes
For measuring the quality of performance of your outsourcing vendor, setting KPIs against the outsourcing business processes is mandatory. Following are the few KPIs that you can follow during outsourcing business processes while tracking the process.
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Customer Service Level
The customer service level is an important KPI that is used to measure the response time of the concerned agent after you contact them. It is defined as the average response time that is calculated whenever your team reaches a technician and the time taken by them to reach you. There are a few KPIs in this section, such as average response time, customer satisfaction level, first call resolution, service level, complaints, etc., that can be used to track the progress of your outsourcing business processes.
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Conflict Resolution
Conflicts are inevitable, especially when you prefer outsourcing business processes to a third-party service provider. Among the list of KPIs that you are formulating for tracking the whole procedure of outsourcing business processes, conflict resolution must include an otherwise negative impact on the work schedule. The point of communication should be to make sure that both parties are following the protocols so that the rate of conflict may diminish and productivity might increase.
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Quality Maintenance
Quality maintenance is one of the most important criteria that should be taken into consideration, as your whole business growth is dependent on the non-core tasks that you have outsourced to a service provider. Check whether the company has strict measures for quality control or not. Otherwise, you can set measures on your own and discuss your quality checking KPIs, such as MTBF (Mean Time Between Failures), MTBM (Mean Time between Maintenance) with your outsourcing partner, and make sure that during the time of project delivery they fulfill those KPIs.
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Complaints Handling
Handling complaints within or outside the company is a vital task that each company must do while dealing with customers or a different company. Whether you are outsourcing business processes to a BPO company or making a business deal with another company, complaints are something that will come up in the process. Establish a process that deals with issues and complaint handling, and make sure that the response time is immediate; otherwise, there will be serious business concerns.
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Communication
Communication is important in every aspect of life. There should be proper documentation that mentions all processes of communication so that there is no breach of miscommunication happening at any point. Miscommunication can lead to many issues regarding project delivery, such as quality issues, not meeting business requirements, failing to make required changes, not meeting deadlines in time, etc., that can cause serious damage to the business in terms of brand reputation. Despite choosing the best outsourcing service provider for your business needs, maintaining a documented plan of communication is equally important.
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Data Security
Security and privacy are things that any company cannot afford to breach. If you are planning on outsourcing business processes to a different company, then it is your responsibility to check the data security measures taken by that company. Make sure that the companies are HIPAA compliant and are taking strong security measures against data breaches. It is also important that you look for resolutions that the companies take when data is lost, as data retrieval is equally important, just like a data breach. As you are sharing sensitive information and data with another company, it is very important to sign a non-disclosure agreement for the same.
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Schedule Compliance
Schedule compliance is one of the vital KPIs that should be taken into consideration so that you can get your project delivered in time. This KPI will measure the timeline taken by the outsourcing agency to complete your work. Schedule compliance should be strictly adhered to so that you can provide your customers with products and services. There should be an agreement that mentions the date of delivery of the project. A scheduled communication should be uniformly maintained so that both parties agree on a specific date of project delivery.
CONCLUSION
When a company strictly adheres to a well-defined system of methodology that has the scope of quantitative and qualitative aspects, the smooth flow of business operations can be assured. A manager should be assigned who will follow a well-defined scope of the service requirements that will help in formulating the KPIs for measuring the success of the outsourcing business processes. The above-mentioned KPIs will help a business outsource business processes and experience greater success in the competitive market.
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