A key issue is the common underestimation of change management. Many companies assume they're merely relocating processes to a new provider without any need for re-architecting. However, this can lead to significant disruptions in productivity. Another challenge involves the effects on service users and external stakeholders. The transition can change how employees perform their tasks and alter interactions with the company. Furthermore, failing to address existing inefficiencies in current processes can result in ongoing issues, even after outsourcing.
Imagine a scenario where an organization chooses to move its customer support processes to an outsourcing partner in a distant land, opting for a lift-and-shift business process outsourcing (BPO) approach. This decision helped the company reduce costs and provided key employees with more fulfilling, strategic roles.
Then reality hit. After outsourcing the processes, a sales support team received a customer complaint about an order status. Previously, she would have contacted her friend on the support team, but her friend had since left the company.
As many in the BPO industry understand, a successful transition demands careful planning and expertise across various functions, including finance, HR, and IT. Unfortunately, many businesses still believe the misconception that a lift-and-shift approach to BPO has minimal effects on employee productivity.
The process of lifting and shifting a business operation is filled with unforeseen consequences and adjustments: processes change, responsibilities are redistributed, new technologies emerge, and the people and culture vary. Recognizing and planning for disruption in advance enables the organization to minimize its impact and better position itself for a seamless transition. Crucially, a smooth BPO transition goes beyond surface-level benefits: it can pave the way for digitally transformative tools and platforms, ultimately delivering greater value to outsourcing partners. To ensure BPO success, businesses need to prioritize the human element of the change alongside the technical and operational components. By incorporating a robust and structured change management approach into the program, organizations can identify impacts, mitigate risks, and create a smoother user experience, enabling them to realize business benefits more quickly. Lift-and-shift BPO involves more change management than many realize. A reluctance to communicate can result in long-term issues such as silent resistance, a negative experience for employees and customers, reputational harm, and more.
Based on our extensive experience with a variety of BPO clients, we have identified key strategies to facilitate a smooth lift-and-shift BPO transition.
Evaluate The Changes To
Involve all relevant stakeholders early in the process to gather input, address concerns, and foster buy-in for the changes. Implement a structured change management approach to address the human side of the transition, including communication, training, and support for employees.
Strong Communication
Too frequently, company leaders hesitate to communicate about an outsourcing transition, thinking that "they don’t need to know.". Maintain open and transparent communication throughout the transition to keep everyone informed and aligned on goals and expectations
End-To-End Testing & Go-Live
Carry out a comprehensive test-drive period. It's important to look beyond just the in-scope changes, as adjustments that seem to impact only one department or user group can often create unexpected ripple effects elsewhere.