When we got together with pugilistic pundits Jason Busch and Deb Kops to write Trapped by Procurement BPO? Don’t Get Stuck in the First Place or Un-muck Yourself Now, we knew sparks would fly.
The paper explores challenges and pitfalls for Procurement BPO — from initial design to sourcing, transition and steady-state operations. We make a number of recommendations, including:
- Do more in change management before and after the outsourcing. In hindsight, nearly all BPO adopters say they should have done more.
- You wouldn’t select a fabulous viola player to teach you guitar; process experience (metaphorically knowing a “string instrument” in this example) matters little compared to deep domain knowledge from the provider.
- Think about all of the stages of the BPO process both disparately and as one — from initial sourcing and strategy development to transition, steady state, and ongoing vendor management, each stage brings critical nuance and importance in getting the most from relationships and avoiding potentially costly missteps.