One of the main reasons for getting a business process outsourcing partner would be the cost savings. Many companies believe that they would definitely be able to streamline their expenses as well as operate more efficiently with the help of business process outsourcing.
While this is true, the savings would not come automatically. You would definitely have to manage your funds in order for this to come true.
Since managing funds is not the strong suit of many of companies, many are in the dark when it comes to it. To help them, here are some factors that they should keep an eye on.
Keep track of the exchange rate:
When you are engaged in Business process off-shoring to other countries, you would usually deal with the currency of another country. As such, you would need to keep track of the exchange rate to see if you are actually able to save some money by outsourcing or if you are already losing out because of the economy.
You would need to monitor the current financial situation and check if it is still feasible to maintain your Business Process outsourcing partnership. This is especially true if you are negotiating and extension of your contract.
Check for redundancies:
When you are outsourcing, there may be some tasks that you are currently doing that are already quite redundant. This would be true especially for some of the clerical tasks that your company used to do in house.
You may want to check for these redundancies and eliminate them by either letting go of some employees or reassigning them to be able to maximize the salary that you are giving to them. Of course, you should understand that it is not a simple price comparison between cheaper salaries. There may be some advantages to keeping some of your older staff so you should think about your employee movements before pulling the trigger.