STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
ARTICLE 193
providers, particularly the latter generation providing the more 'high stakes' customer-facing services. Here there is an opportunity for the principles of good SRM to be applied, for example more value based commercial models which are centred on delivering joint business outcomes. Below we have selected a few of the fundamental SRM principles relevant to relationships with BPO partners. ö ö A supplier relationship is looked at holistically to understand not only the dimensions of spend and risk but also the appetite and capability to collaborate, and to add value beyond the basic contract requirements. ö ö A governance model is developed that streamlines control and also creates an environment and forum for collaboration. ö ö Both parties embrace change and are skilled change managers. ö ö A focus on benefits beyond just cost reduction is developed. ö ö Alignment to business drivers and strategic business outcomes is a target for both parties. ö ö Partner technical and domain expertise is leveraged. ö ö Organisational design is complimentary and aligned to the outsourced process. ö ö People are equipped with the requisite relationship and collaborative skills. ö ö Technology is a key enabler. ö ö Stakeholders are engaged and supportive.
This second generation BPO requires a level of integration and joint working that goes far beyond most other third party supplied services. An end-to-end approach is important to be successful, and means the client and service provider collaborating effectively to deliver business services. Both are required to take a more holistic view of the services, processes and functions being outsourced. Both parties need to be set up through their governance structures to be able to review and improve services continuously. They need to be skilled change managers to ensure the benefits of this dynamic approach are not lost in poor implementation. For collaboration to work, it is important for the client to view the provider as a strategic partner rather than as an opportunistic supplier. This is easier said than done – it requires behaviours to change at all levels within the organisation and the historical baggage of a potentially problematic relationship to be permanently stored away.
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