Managing Service Level Expectations in an Outsourcing Relationship

Thursday, May 10, 2012

At the onset of every business process outsourcing relationship it is important to evaluate metrics for service level maintenance. These metrics provide a guide for the provider and a way for the company to measure its satisfaction with the provider. These can be outlined in the service level agreement, and should be discussed at regular intervals.

Some key aspects that should be focused on in the service level agreement and throughout the service relationship are the following: meeting year-over-year cost reduction goals, ability to adapt to changing market conditions and industry regulations, service capabilities during peak volume levels, corporate culture blending, speed in decision making, and communication during organizational changes.

This list of key points comes from a 2011 study of 26 successful BPO relationships done by the Outsourcing Center. These key service points can be pivotal for a service relationship. Specific to communicating on organizational changes and decision making, it is critical for companies and providers to establish a rapport between senior executives to ensure communication is appropriate and corporate cultures are blended to match the company's business needs.