For most organisations outsourcing is the perfect pill for removing internal headaches. A specialised and carefully selected outsourcing partner can deliver significant benefit to the bottom line, support business growth and enhance the organisation’s ability to develop customer-business relationships. However, there are numerous layers to implementation and one of the most important factors to consider is the level to which an outsourcing partner will be allowed to go. “There are three different levels of outsourcing and the level your business adopts will depend on what is being outsourced, the functionality required and the duration,” explains Teryl Schroenn, Chief Executive Officer, Accsys. “If it is once off project, then only certain elements will be outsourced, if it is a number of projects, then these would be outsourced on a per project basis, and then there is the richer functionality of outsourcing an entire function, department or group.” Outsourcing has evolved from its roots as a stopgap solution to support a department, to a strategic investment that frees up essential time and resources. To ensure it remains as such, it is important for the business to know exactly what levels are to be outsourced and how much control is to be ceded. It’s about control “If you look at the human resources (HR) and payroll functionality within a business, for example, maintaining control of HR allows for more internal engagement, while payroll may more easily be outsourced without impacting on personal relations,” says Schroenn. “You can outsource HR dashboarding and introduce employee self-service to support the HR function while still maintaining control over personal interactions – this is outsourcing on the project level.” If managing a series of projects, every element can be outsourced while retaining control of the overall implementation. This gives the business a more hands-on approach and is defined as a hybrid application. This gives the business plenty of outsourcing support, but the business keeps its hand in the mix. “The hybrid solution is a strategic move as it takes away the non-core part of the work, but keeps the parts where there is internal value add,” says Schroenn. “It is a powerful option for the organisation that wants to keep an eye on the risks of outsourcing while harvesting the benefits.” Not without risk And there are risks. There must be a chain of accountability established from the start of the relationship with an outsourcing partner and a clear path to resolution if something goes wrong. There is also the risk of costs rising beyond the anticipated savings if accountability and deliverables are not established upfront. When it comes to benefits there are plenty, of course, which is why outsourcing is so popular. “You can outsource the boring and tedious elements of any role or department to someone who can handle it all effectively for you instead,” says Schroenn. “A lot of what people in HR and payroll do is load data, so by outsourcing that onerous task you are keeping the information and application of that data in-house while giving employees more room to grow and develop their roles internally.” Successfully selecting the correct levels of outsourcing for the business are achieved by establishing precise parameters and harnessing the capabilities of the outsourcing partner to enhance your own. It is a mutually beneficial process that can help the business remain flexible, stay on top of the latest technology and scale to suit demand. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za ABOUT Accsys – People Management Solutions Accsys is an award winning South African software company specialising in people management solutions. In business since 1981, Accsys is a proud member of the Innovation Division, Business Connexion group. Its solutions, which are being used in more than 2000 companies, are developed in South Africa with particular emphasis on South African workplace conditions to fulfil the purpose of providing strategic solutions for people who manage people. For more information on Accsys please visit: Website: http://accsys.co.za/ Twitter: @AccsysPeopleMan LinkedIn: Accsys (Pty) Ltd Facebook: Accsys (Pty) Ltd
0 Comments
Outsourcing can potentially add value, cut costs, support business growth and enhance customer-business relationships. An impressive list of attributes that sometimes mask the reality that selecting the wrong outsourcing partner can result in the business experiencing few of the benefits, with some added new challenges. The Industrial Development Corporation has indicated that globally Business Process Outsourcing (BPO) is in the midst of a growth surge with an anticipated $202.6-billion by the end of 2016 and a five-year compound annual growth rate of 5.3%. “To get the benefits, the business must select a BPO partner carefully and with due consideration,” explains Teryl Schroenn, Chief Executive Officer, Accsys. “The first step is to ensure that there is a compatibility between what your business wants to achieve and what a potential partner offers. Then, once you’ve found this compatibility, you must be prepared to pay for it.” Many organisations are unprepared for the price tag that can come with an outsourcing solution. Some might commence at a higher cost than what the business currently spends on their day-to-day running of systems. However, if they deliver on their promise, the long-term savings and benefit to business should be significant. “Define what you want from the relationship, and know what will support your business growth and what will hamper it, and ensure these parameters are met from the outset,” explains Schroenn. “Be sure to share this with your BPO partner. This will also keep them aligned with your strategic goals and help you to identify areas where you are not receiving the right levels of delivery.” The partner checklist In addition to ensuring alignment and compatibility, an essential step in selecting the right partner is to check their credentials and stability. If they’re not stable or competent, then they can damage the business significantly, so request referrals and look for deep experience. “The whole point of outsourcing is to refocus business energy towards growth and development, but if time is being now spent on managing and directing the outsource relationship, then it’s just not working,” says Schroenn. “It is critical to see the selection process in the same way as an interview for a staff member – establish how they would handle downtime or if something goes wrong, and how they would fit in with your business plan.” A simple checklist will support the selection of the right partner. Note precisely the specifications, the desired benefits, the specialised skills you need and the expected expenditure. Establish how they would manage the relationship with your business, such as a single point of contact or simply a helpline, and what their back-up processes are in the event of a failure or disaster recovery scenario. Attention to detail “Start slowly, build the relationship over time, get to know how well the businesses work together and then move forward,” advises Schroenn. “Most companies leap in with both feet and want everything outsourced today. A staged, phased approach is far steadier, and is sustainable.” Ultimately, a truly effective outsourcing partnership comes down to trust. So, avoid outsourcing for the wrong reasons and take time finding a partner that suits your business. It isn’t an exact science, but by asking the right questions, it can be a rewarding process. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, http://www.atthatpoint.co.za/ ABOUT Accsys – People Management Solutions Accsys, a member of the BCX Group, is an award winning South African software company specialising in people management solutions. In business since 1981, its solutions are used in more than 2000 companies and developed in South Africa with particular emphasis on South African workplace conditions so as to fulfil the purpose of providing strategic solutions for people who manage people. For more information on Accsys please visit: Website: http://accsys.co.za/ Twitter: @AccsysPeopleMan LinkedIn: Accsys (Pty) Ltd Facebook: Accsys (Pty) Ltd The Deloitte Global Outsourcing Survey 2016 found that outsourcing will continue to grow, providing customers with innovative services and solutions that help them cut costs while remaining competitive and on track. However, not all outsourcing is created equal and should be undertaken with a measure of consideration and a dollop of common sense. Business process outsourcing (BPO) has evolved into a thriving and enormously successful market, accelerating in growth as it constantly reinvents itself and adapts to the changing paces of digital, country and economy. “Outsourcing allows for the business to achieve specific goals or tasks without having to train people, understand the solution or manage risk and redundancy,” says Teryl Schroenn, Chief Executive Officer, Accsys. “You get the advantage of expertise and advice, you can say farewell to the operational elements completely and you get built-in redundancy – a win for any size business.” She adds that there is also the immediate cost benefit in that the business does not need to invest in infrastructure or employees to gain access to superlative solutions and technology. “That said, outsourcing must be undertaken with clear goals in mind and with the right service provider,” Schroenn further notes. The benefit of BPO Software upgrades, backup restores and system management – all these issues disappear into the hands of the service provider so the business can focus on delivering its core services, not on managing its internal ones. In addition, BPO mitigates the impact of employee loss due to illness or personal circumstance as the service provider must deliver on its mandate - regardless of the challenge, the organisation is assured of immediate continuity. “Another advantage is in confidentiality,” explains Schroenn. “For example, with executive payroll you can outsource the information to another business rather than keep it internal which will ensure the numbers remain private.” Some of the best tasks or services to allocate to the BPO model would be payroll, customer support and helpdesk, web design and virtual assistants. Each of these offerings comes with the best of breed in technology and capability, each one taking a load off the organisation’s proverbial shoulders. 360 degrees of awareness There is much to commend BPO – it’s seamless, it cuts on costs, it creates room for the company to breathe while giving them access to the latest in technology and solutions, and it can be tailored to budget and business. However, the organisation must ensure that they select a reputable provider who has systems in place to protect critical data and who don’t happen to hold the data of a competitor in their hands. “You don’t want to run the risk of a competitor uncovering your critical data,” concludes Schroenn. “So, pick a service provider which doesn’t have anyone in the same game, that minimises risk to your business, is aware of its redundancies, has rigorous security and is well audited. You are putting your business in someone else’s hands so make sure it is someone you can trust.” ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za ABOUT Accsys – People Management Solutions Accsys is an award winning South African software company specialising in people management solutions. In business since 1981, Accsys is a proud member of the Innovation Division, Business Connexion group. Its solutions, which are being used in more than 2000 companies, are developed in South Africa with particular emphasis on South African workplace conditions to fulfill the purpose of providing strategic solutions for people who manage people. For more information on Accsys please visit: Website: http://accsys.co.za/ Twitter: @AccsysPeopleMan LinkedIn: Accsys (Pty) Ltd Facebook: Accsys (Pty) Ltd |
Welcome to the Accsys Newsroom.
Archives
July 2017
Categories
All
|