What to Expect When
First-Time Outsourcing
May 31, 2023
Whether your business is booming, and your internal teams can’t keep up with customer demand, or you find you require specialist skillsets or multilingual support not immediately available in your local talent pool, high-quality business process outsourcing is in increasing demand as companies look to effectively scale their businesses in a flexible way while improving performance and reducing costs. In this article, we look at some of the key considerations when first-time outsourcing, from selecting the right outsourcing partner to going live in production and what to expect in between.
Everything starts with knowing your business and your needs, goals, and circumstances. What is driving your growth, who are your customers, and how are they interacting with your brand? Which functions are you looking to outsource and why? While most of this will be ascertained internally in advance, a good outsourcing provider will offer a consultative approach, helping companies identify pain points and help tailor solutions to their specific needs. But how do you best approach and select your prospective outsourcing provider to ensure a successful partnership?
| ONSHORE | NEARSHORE | OFFSHORE | |
|---|---|---|---|
|
COST |
❌ |
✅ |
✅ |
|
COMMUNICATION |
✅ |
✅ |
❌ |
|
CULTURE |
✅ |
✅ |
❌ |
|
CLOSENESS |
✅ |
✅ |
❌ |
Assuming you have made the right choice, the next step is determining the scale and scope. How many agents do you require, and for which functions? Fifty agents is usually a minimum requirement trained in classes of twenty-five each. A confident outsourcing partner may allow you to start with a smaller pilot project to test the outsourcing arrangement before committing to a long-term partnership. This will allow you to evaluate the outsourcing partner’s capabilities and benchmark performance against internal teams before scaling up.
The next thing to consider is the technology and application integration. This may involve upfront costs for equipment and IT resources such as connectivity and telephony. Complete systems integration can take between 1-2 weeks. During this time, the hiring process will also begin, with hiring profiles determined and candidates vetted and skills-tested to ensure suitability. It is also a period where the management infrastructure is selected, and Program Managers, Supervisors, and Team Leads are allocated. These are usually promoted from within to ensure tenure and experience.
Now that the technology and personnel are in place, it’s time to train. There are two approaches to a successful training program. Either the client will provide trainers to educate their new team in an on-site environment, or a so so-called “Train the Trainer” model can be used, where the outsourcing providers’ training team visits the client externally for training and then bring that knowledge home to educate the new recruits. It’s also important to note that in these instances, training manuals, courses, and materials exist. In the event that they do not, a good outsourcing partner will work closely with a client’s internal teams to develop effective training programs.
Next, we have the nesting phase, where the newly trained agents transition into full production. This involves supervised on-the-job training under the guidance of the more experienced supervisors and team leads, helping agents gain practical experience and confidence in handling real customer interactions or performing specific tasks. It may involve listening to live calls, shadowing experienced agents, handling mock scenarios, or participating in role-playing exercises. It aims to ensure that new agents become proficient in their roles, workflows and systems, adhere to quality standards, and provide satisfactory customer service before they are fully integrated into the regular production environment.
Finally, it’s production time, when the full quota of agents is handling the client’s customer interaction and the process of monitoring for quality and performance begins. Pre-determined performance metrics or KPIs will have been established, and during the early stages of production, it is essential to ensure that these targets are being met or exceeded. This process will be an ongoing one throughout the lifespan of the program, but it is essential to measure and monitor from the outset to set the bar for the future. Depending on the size or complexity of the task, this whole process can usually be completed within a 30-60 day window, so it’s important to understand that aside from upfront costs, patience is also required as your new external team ramps up to optimal performance levels.
KM² Solutions, with an exclusively nearshore strategy and two decades of experience serving clients across all major verticals, is adept at building partnerships from the ground up and retains the flexibility to grow and grow with your business. Through its consultative approach, KM² works closely with clients from day one to plan and position their outsourcing needs to ensure successful outcomes for its clients and their customers. Using key technologies in everything from streamlining the hiring process and effective and cost-saving workforce management programs to AI and enhanced performance optimization and gamification, KM² is ideally positioned to make your first-time outsourcing journey as smooth as possible.
About KM² Solutions
KM² Solutions ( KM2 Solutions ) operates contact centers throughout the Caribbean and Latin America, providing outsourced inbound and outbound customer service contact services for voice, chat, email, and mobile. KM² Solutions provides these services to clients in financial services, multi-unit healthcare, insurance services, travel & hospitality, eCommerce, technology & telecommunications, home services, and other sectors. The company provides clients with a host of solutions, including customer support and care, telesales & retention, claims management & processing, appointment setting & schedule management, loan origination & verifications, back-office processing, and technical support. KM² Solutions maintains PCI DSS compliance, completes a SOC 2 audit annually, and has a Compliance Management System that meets the FDIC standards.
