It is necessary that BPO agreements be designed to provide for adequate flexibility in order to withstand both the dynamics of the business environment and the pressures that are inherent in such a contractual agreement. Typically, BPO contract agreements are crafted on certain key assumptions pertaining to technologies, business conditions, personnel, and other relevant issues. [...]
Entries Tagged as 'Business outsourcing'
Fundamental characteristics of the business process outsourcing (BPO) project
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Four fundamental characteristics will give shape to any BPO relationship regardless of industry or BPO type: The depth of the relationship The scope of the relationship The choice of assets to use The choice of business culture to adopt and exploit The depth of the BPO relationship depends on the criticality of the outsourced business [...]
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Managing the Buyer-Vendor relationship
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Managing the business process outsourcing (BPO) relationship successfully is a challenge for buyers and vendors alike. Notwithstanding the potential benefits of outsourcing the complex nature of an outsourcing agreement lends itself to a variety of challenging relationship management issues. Although relationship management is a key component of any successful outsourcing project, it is the most [...]
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Business continuity and benchmarking
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The final consideration in managing the business process outsourcing (BPO) transition is to ensure business continuity throughout the process. It is to be expected that performance indicators for the outsourced process are likely to be down or flat during the early stages of the transition. It might also occur that processes tightly linked to the [...]
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Managing culture beyond the outsourced process
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Beyond the organizational units immediately affected by the business process outsourcing (BPO) project are employees who are friends, relatives, and acquaintances of those affected BPO project managers must not overlook the ripple effects that are created by outsourcing and the threat that others might fed from witnessing the introduction of BPO into neighboring work units. [...]
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Managing job loss and changeover
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Managing job loss and changeover is assuredly among the most difficult challenges that managers face, no matter what the cause of the upheaval. It is no secret that most rank-and-file employees in the organization who are likely to be displaced by a business process outsourcing (BPO) initiative are living paycheck to paycheck. The looming prospect [...]
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Business process outsourcing: Communicating with employees
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Effective communication with employees is vital to the business process outsourcing (BPO) transition process. A lack of communication from managers to employees does not mean a lack of communication within the organization. Organizational space abhors a communication vacuum. If the space is not filled with deliberate, optimistic, and directive messages from leadership, it will be [...]
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General principles of chance management
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Effective change management in organizations has been studied and examined in great detail. No stone has been left unturned because scholars and organizational consultants recognize that this is a particularly needful (and lucrative) area in which to practice. Unfortunately for managers who have to sift through all of the articles, reports, books, and consultant schemes, [...]
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Leadership and Management Roles
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Standard definitions of leadership distinguish it from management by associating the former with something like vision and the latter with something like operations. This crude distinction does not always hold, of course, because managers are often cabled on to articulate a vision and leaders must occasionally roll up their sleeves and take action. Still, if [...]
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Terms of the business process outsourcing (BPO) contract
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We have stated that the BPO contract negotiations should be conducted in a positive-sum spirit, with an eye toward building a trusting, synergistic relationship. At the same time, it would be naive to assume that trust is a sufficient governing mechanism. In fact, drafting precise contract terms, including avenues for remedy in case performance falls [...]
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