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How to address outsourcing fragmentation

Jun12



The benefits of business process outsourcing are well documented. Organizations seeking to increase the efficiency and cost effectiveness of their back office processes will contract this work out to third-parties while the client focuses on its core competencies (outsourcing fragmentation). The benefits of such a practice are without a doubt rather substantial, but the negative aspects of business process outsourcing must be examined as well to prevent avoidable short comings in the quality of a particular service being provided.

In an article posted in the Economic Times1, outsourcing fragmentation is discussed as a potential shortcoming of the outsourcing process if it is left undressed. The author asserts that outsourcing fragmentation (the use of different suppliers and component manufactures in the production of a good or service) can lead to individuals with varying levels of training and experience completing different portions of the service. Therefore, the end customer may experience contractors that are not as familiar with the client’s operating procedures. This process may repeat itself whenever a new business process company acquires the contract to perform a particular task for a client that is only a small part of the total group of processes that the client has outsourced to other business process outsourcing companies. To ensure a task is completed as efficiently as possible, the business process outsourcing company must be in constant communication with the client regarding the proper operating procedures and expectations surrounding each process.

How to combat the negative effects of outsourcing fragmentation?

The unitization of work, along with the creation of logical work modules combats the negative effects of outsourcing fragmentation. The unitization of work creates teams of employees that specialize in the completion of a certain task or process for a client. This familiarity with the client’s operating procedures, leading to more favorable results. Similarly, the creation of work logical work modules provides a sequential set of tasks for the service provider to complete as opposed to a set of processes that may difficult to understand as a whole when completed outside of a logical order.

While the unitization of work and the creation of logical work modules do much to address the issues of outsourcing fragmentation, proper communication between the client and the business process outsourcing company is absolutely crucial in the proper completion of back office processes that are necessary for a business to function. When proper lines of communication are open between the two parties, each is aware of the proper process to be performed and the expectation of outcomes surrounding that specific task. When these expectations are clearly communicated, each party understands what must be accomplished for the projected to be deemed a success.

Telegenisys works closely with clients throughout each project, ensuring that procedures are completed accurately and that desired outcomes are being met. Within the client’s existing infrastructure, Telegenisys works to integrate seamlessly into the product cycle. The result is a more efficient and cost effective completion of your business processes that are sure to meet and exceed your expectations. To find out more about Telegenisys’ product offerings, click here.


1 http://articles.economictimes.indiatimes.com/2013-04-22/news/38737153_1_customer-dimension-output



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