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Back Office Services

6 KPIs You Must Consider Measuring The Success Of Back Office Outsourcing

The global back office outsourcing market was estimated at USD 245.91 billion in 2021, and it will reach beyond 261.9 billion by the end of 2022. Its compound annual growth rate is 9.1% from 2022 to 2030. This stat indicates the dependency of global businesses on outsourcing companies. Back office outsourcing is no doubt a solution for growing businesses. But are you sure outsourced back office services will help your organization? Many business owners do not have any confident answers simply because they lack the measurement part. If you are determined to outsource your back office requirements, you should also learn how to measure the success of outsourcing. 

Only a few outsourcing companies discuss how to measure the success of back office outsourcing. But being the leader in the industry, we prefer to inform everything so that our clients can make the best business decisions and grow their businesses uninterruptedly. 

What to measure? 

In the first move, you should prepare a rundown of all the valuable objectives that you have set for your organization. While outsourcing, you have prepared some goals and should check whether the defined goals are achieved. Not all goals on the list will be ticked right, but maximum goals should be achieved. You should also prioritize goals based on their category. Apart from this, there are six highly important areas such as relationship, quality, cost administration, conveyance, system, and development. So, while preparing the list of things you want to measure, you should start with these basic areas to get a deeper view of the overall success of your outsourced projects. 

Back Office Services
Back Office Services 

KPIs you should follow to measure outsourcing success 

  1. Performance evaluation 

Outsourcing shows no signs of slowing down in terms of the company’s growth and success. It is a key driver, and you must check whether your production is slowed down or fastened after enabling outsourcing. Outsourcing is a solution but can also be a burden if it slows down your overall business process. 

When you outsource some of your tasks to a back office outsourcing company, it takes a few days and even weeks to adjust. There should be enough flexibility so your in-house teams can work uninterruptedly with the offshore team. You should also ensure that your in-house employees spend the least time editing the work sent by the outsourcing team. If your in-house employees do not need to edit the offshore team’s work, it’s a good sign that there is a perfect balance between the two teams. 

  1. Conflict resolution 

When it comes to outsourcing back office services, you need to accept that many conflicts will come and go. But there should be proper conflict resolution. Conflicts are inevitable and unavoidable. So, while outsourcing your requirements to an offshore company, you should check whether there is any flexible conflict resolution or not. Along with checking their previous case study, you should also discuss the project challenges, conflicts, and how they have solved everything. There should be a quick resolution to solve any kind of conflict. When finding the quickest conflict resolution, you should ensure both parties follow the protocols. If two parties follow all protocols accordingly, there will be less conflict rate and chances of increased productivity. 

  1. Complaints handling 

Handling complaints has become a norm for all businesses out there. It has become vital for each company, especially when a business deals with different customers or different companies. While outsourcing your requirements, you should check your chosen company is rightly equipped with advanced complaints-handling measures. Complaints are inevitable, and they will come every now and then. Obviously, you should try hard to reduce the number of complaints. But there should be enough measures to solve any complaint without dragging the issue further. With the outsourcing company, you should build a process that deals with issues and complaint handling. The feedback time should be abrupt. Otherwise, you may face serious business concerns every now and then. 

Back Office Outsourcing Company
Back Office Outsourcing Company 
  1. Set milestones and track 

Setting realistic deadlines and seeing how the reappropriated group performs are excellent indicators of the outsourced team’s effectiveness. Start with simple tasks that incorporate specialized viewpoints to gauge their readiness. The success of a project depends on getting things done on time, but it’s also important to define how long each step takes. This involves calculating the time required to maintain a component or resolve a problem from the beginning of the project to its completion.

  1. Transparency & effective communication 

The success of a reevaluation project can only sometimes be predicted using measurements and data. A lot can be inferred about the task from the working relationship you have with the members of your reevaluated group. Be consistent, predictable, and upfront about the presumptions you hold. Additionally, keep constantly aware of each component’s obligations, shortcomings, and requirements.

  1. Quality maintenance 

Your entire business’s success depends on the non-core jobs you have contracted out to a service provider; quality maintenance is one of the most crucial factors you must consider. Verify whether the organization has stringent quality control procedures in place. The alternative is to define your own goals and work with your outsourcing partner to discuss quality-checking KPIs like MTBF (Mean Time Between Failures) and MTBM (Mean Time Between Maintenance) and ensure that they are met when the project is delivered.

Considering these 6 factors, you can easily measure the success of your outsourced back office services. Most companies fail to consider these factors and only concentrate on leads and revenue. If you consider a broader picture and consider these crucial factors, you will get the actual overview of success. If you need to connect with the best outsourcing company for back office services, India Rep Company can be your best solution. No matter if you need to onboard the best back office outsourcing team in minutes or track the overall success of your project  India Rep Company can help you in every phase of your business.

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