Managing BPO-Related Change

        Change is intrinsic to the BPO transition stage. It presents organizations with opportunities that must be maximized and risks that must be avoided.As such,the transition must be carefully managed through a far-reaching project management plan and a strategy that respects the roles of leadership and management;the need for honest communication with employees; a recognition of the indirect impact BPO can have on non-affected business processes; an appreciation of the lingering fears and concerns that can occur during job loss and management changes; and the value of establishing and maintaining business continuity.

       The impact of these changes is further complicated by the arrival of a new relationship between BPO buyers and vendors. Like the transition itself,this must be carefully managed,and can be mastered only through an ongoing focus on business benefits expected by both parties.This requires negotiation,communication,and business skills,and must be characterized by trust and the alignment of values. By understanding and pursuing the fundamental traits of a successful BPO relationship,buyers and vendors can make the critical decisions necessary to achieving project success and, potentially, forge partnerships that outlast the current initiative.

        I learned that misunderstanding and mistrust can arise when a BPO buyer initiates a project with a vendor whose organizational culture and operating style are vastly different from its own. Such differences can and often are bridged. But what matters is whether the two firms recognize the differences and take proactive steps to deal with them. Of course, it is impossible to uncover all cultural differences during vendor selection; some will only become manifest in the operating phase.The project management plan should include inducements for each side to identify and detect problems that are a direct result of cultural differences.

          BPO agreements must be designed to provide for adequate flexibility in order to withstand changes in the business environment and the pressures inherent to such a contractual agreement.Typically, contract agreements are crafted on certain key assumptions pertaining to technologies, business conditions, personnel, and other relevant issues. But these assumptions will likely change with time. No matter how detailed the contract or favorable the terms, BPO agreements cannot anticipate all of the changes that occur in a dynamic, global business environment.

Dimensions of a Healthy Relationship

• Flexibility. Defines a bilateral expectation of the willingness to adapt as circumstances change.
• Information exchange. Defines a bilateral expectation that buyer and vendor will proactively provide information useful to each other.
• Solidarity. Defines a bilateral expectation that a high value is placed on the relationship and prescribes behaviors directed specifically toward relationship maintenance.

Relationship Risk Factors:

• Lack of appropriate buyer control
• Cultural differences
• Inflexibility in BPO agreements
• Inadequate SLA specifications and/or metrics
• Inadequate governance
• Lack of goal alignment
• Lack of integration