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Managing Business Process Outsourcing
June 2022 Examination
Q1. Many companies have considered
outsourcing a broad range of business processes, including IT services, to
achieve critical cost savings. Although this kind of agreement can be
structured in many ways, a thoughtful contractual arrangement, with appropriate
cost sharing, pass-through mechanisms and pricing adjustments, allows the
parties to share certain risks and at the same time establish a productive and
profitable relationship. Explain BPO contract negotiation and monitoring and
their risk impact? (10 Marks)
Ans 1.
Introduction
Businesses have best currently begun to
understand the significance of powerful agreement management. Contracts were
regarded entirely as prison files that would handiest be consulted during legal
proceedings. Because of this, contracts are used to define the whole
client-seller relationship in the IT-BPO industry. This consists of all
components of buyer-vendor dating, from prison to business. As outsourcing of
non-center and center services has grown exponentially, as has globalization
and the creation of recent business models, IT-BPO contracts have become
increasingly complex.
Q2. Organizations
typically undertake periodic process improvement that are focused on specific
business processes and may or may not align with the business strategy. In
order to realize all the benefits of sometimes disparate BPM efforts, there
needs to be an ongoing, organization-wide effort to assess and measure the
results and continue to use the successful implementations. A process portfolio
is widely considered the answer. What are the benefits of effective process
portfolio management? (10 Marks)
Ans 2.
Introduction
This is the process that project managers and
PMOs use to assess the capacity of a project and devise a plan for managing it.
The PPM technique consolidates current facts, forecasts pipeline prospects, and
gives all the facts in real-time. The unified control method is one in which
all projects are handled under a single roof, referred to as a portfolio. The
benefits of a holistic approach to venture portfolio control include monitoring
the repute and fitness of tasks, their interdependencies, and the overall
performance of assets assigned to the tasks. Since task metrics can be up to
date in actual
Q3.
For ALPHA CallCenter, a leading healthcare BPO company based out of Gulf
approached MeraBPO with a requirement to improve their BPO process. The
customer's BPO division handles over a million customer calls every month, but
their customer satisfaction levels were plummeting downwards. Even their CSAT
was as low as 47%. Since the customer was a part of the healthcare industry, it
was unacceptable for the company to find a low level of satisfaction from their
customers. MeraBPO's role was to nail down the causes for the low CSAT levels
and then to provide a customized BPO solution that would help the company's
performance to soar.
At
the onset of the project, the BPO team at MeraBPO decided to dissect the
problem and get to the root cause. Through a detailed analysis, they identified
some of the critical issues in the process that were affecting the customer's
BPO's performance. The following were the requirements of the customer:
There
was a linguistic and cultural mismatch between the BPO's personnel and the
client's customers. The client's customer base was native Arabs while the BPO
employees of the customer (5 male agents and 5 female agents) were not native
Arabic speakers. This language barrier
made it difficult for the employees to effectively address the culture-
specific requirements of the customers
There
was a critical need to align the BPO support team with the standard processes
that govern BPO functioning. The BPO team also required intensive training in
BPO platform management
The
BPO's turnaround time lagged over a period of 7 days in contacting their
customers after discharge
The
support BPO team worked only 5 days a week (Monday to Friday) and only between
9
am to 5 pm. This posed a serious limitation for the customers who wanted to
contact our client
The
customers wanted to make sure that they were talking to an Arab agent and would
ask the BPO employees for their last name
Female
patients of our client would submit contact numbers of the male members of
their family instead of their own
The
customer reach percentage was less than 2%
After
identifying the unique problems that were affecting our client's BPO, they
deployed one their best teams to implement a customized BPO platform. MeraBPO's
skilled BPO team refurbished the entire BPO process of the customer by adopting
the following measures:
1.
BPO Service Timings: they increased the support time span by a period of 4
hours. Next, they made the support center available from 7 AM to 7 PM. To match
the working week of UAE, they decided to change the work days of the BPO to
Sunday to Thursday instead of Monday to Friday. Multiple shifts were also
introduced to meet the time demand with WFM.
2.
Local BPO Agents: they hired a team of native speaking Arabs to eliminate the
cultural gaps.
3.
Support Infrastructure: they enhanced the infrastructure for the customer's BPO
center and included best-of-breed voice, email and internet facilities. This
helped in substantially reducing the turnaround time of the BPO team.
4.
Value Added Support Services: they also offered a host of value added services,
such as the following:
they
extended the 24-hour call support for excess processing requirements during
peak hours
The
BPO agents were given customized 'Last Names' to suit the caller's country
The
DID number was masked based on the caller's country
The
BPO agents were given 20% hand-outs
Culture
specific provisions were specially created to record rebuttals from the
objections raised by the male family members of female patients
The
BPO process of the customer was continuously improvised and enhanced based on
Lean
and Six Sigma methods
The
database of the customer was always kept up-to-date
The
BPO application was rectified periodically
Within
a short time span of just 2 months, they were able to present the following
results to our customer. From an unsatisfactory 47% the CSAT galloped to a
whopping 85% - 87%.
The
turnaround time was improved by 24%.
a.
What were the cultural challenges faced by ALPHA call center and how were these
specific cultural challenges met by ALPHA call center (5 Marks)
Ans 3a.
Introduction
Healthcare BPO company Alpha call center
approached Mera BPO to assist with their BPO procedure development. Extra than
one million consumer calls are responded to every month through the BPO
department, yet client satisfaction turned into a declined. Consumer
dissatisfaction with the company's service turned unacceptable because the
client turned into healthcare professional. Mera BPO became tasked with
figuring out the foundation causes of the organization's lousy customer delight
before recommending a specialized BPO solution that could increase its overall
performance.
Discussion
Internal communications, some
b. What are the advantages of outsourcing call center operations of a
hospital to a BPO like ALPHA call center?
(5 Marks)
Ans 3b.
Introduction
A manager's attention and time are restricted
in each firm, which is especially authentic for small organizations. Payroll,
as an example, maybe delegated to a third party, releasing up the business
proprietor's time and strength to awareness of the marketing and sales
operations which are maximum essential to the company's long-term fulfillment.
Discussion
Healthcare firms can also focus all their
time and effort on imparting special affected person care if they outsource
their non-core tasks. This improves their productiveness and profitability.
Outsourcing gives healthcare firms an
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