People at WorkOne key advantage of business process outsourcing (BPO) is in how it helps a company become more flexible by transforming fixed costs into variable costs by allowing them to only pay for work as it is needed instead of maintaining on-site staff through periods when there is not enough work to occupy their time. This variable cost structure helps a company responding to changes in required capacity and without forcing the company to invest in assets like computers, scanners, and office space.

Outsourcing may also provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes.

Perhaps most importantly, BPO contributes to a company’s flexibility by enable it to focus on its core competencies by shedding the burden and demands of non-core processes. This permits the staff to invest more time and energy into building the firm’s core businesses.

Outsourcing Center has asked some experts to identify the most common missteps that cause potentially great BPO relationships to fail. They put together the seven deadly sins of BPO along with suggestions on the best methods to correct problems quickly and efficiently.

The List

  1. Basing Your Buying Decision on Price Alone
  2. Ignoring the Necessity of a Cultural Fit
  3. Entering an Agreement Without Stakeholder Buy-in
  4. Believing “Executive Sponsor” is a Part-time, Short-term Job
  5. Refusing to Adjust “The Way We’ve Always Done Things”
  6. Moving Too Fast
  7. Approaching BPO as a “Vendor-Client” Arrangement

Visit The Seven Deadly Sins of BPO and How to Avoid Them to learn more or reach out to a vPrompt representative.