June 29, 2016

Give More to Gain More: Result-Driven Engagements for Quality Outsourcing


The changes we have witnessed in the ITO and BPO sectors in the last year are greater than the changes we have witnessed in the past ten. Why? Due to powerful phenomena that create unprecedented business disruption – digitalization, real-time analytics, and cloud technology. All these trigger the imperatives of agility, innovation and reinvention. Be it a new business model, RPA (Robotic Process Automation) or a new creative competitor –  ITO and BPO companies have to stay alert, open-minded and ready for change.

The world of outsourcing is exciting due to its complexity. We have the buyer and supplier side, each one having their own agenda, seeing the same engagement from a different perspective. Outsourcing is all about attaining tangible results. Nowadays companies tend to become smarter with investments, measuring strictly by ROI, experimenting faster with approaches and armed with more information and flexible environments than ever before…

The rapid rise of the outsourcing/offshoring model is a proof of its perceived value by industries. It is becoming a norm in various areas. When your peers and competitors are benefiting, the choice is to adopt, adapt, innovate, automate,… or stay behind.

And here comes the quality question. If you go for outsourcing to attain optimization and efficiency, focusing core efforts in core business activities; how can you ensure same or better products/operations and high service? The answer to this key concern lies in finding the win:win equilibrium in the controversy equation of buyer-supplier.

Yes, it is true that each party looks at the same contract from a different perspective. It is also true that both buyers and suppliers are willing to be successful as a result of the relationship. Ultimately, they want to deliver better experience and perceived value to their customers, no matter the context. Thus, the win:win equilibrium comes when the partnership is beneficial for everyone. It goes beyond quality, financials, and delivery. It requires trust and transparency. Putting some skin in the game. Giving more to gain more.

Partnerships foster when there is an unambiguous commitment to results – bonus-malus tactics, sharing the risk, shared revenue generation, etc. There are many approaches. Outcome-based engagements demonstrate a willingness to invest, thrive and succeed in a long-lasting business journey. Who needs a supplier that requires a constant nudge? Who needs a buyer that has no strategy? Quality is a function of communication, excellence and yes, putting some skin in it, to prove you have the guts and are serious about it.