Quite simply, Business Process Outsourcing (BPO) is the delegation of an entire business process to an external provider that owns, administers and manages the output based on contractually defined service and performance metrics. Human Resources BPO can be traced back to ADP and its outsourced payroll functions. The business process was limited in scope, and is therefore more properly called out-tasking, but it represents an early awareness of the compelling benefits of BPO.

There are many examples of successful BPO models in the enterprise: cafeteria services, security, and travel services are classic examples. The success of Information Technology outsourcing provided a platform from which more complex business processes could be standardized, automated, and then outsourced. As companies moved to adopt Enterprise Resource Planning (ERP) packages, such as SAP, PeopleSoft, and Oracle, the standardization of the Human Resource function created a market for the outsourcing of the entire HR function.

Business Processing outsourcing is one of the most widely adopted and most rapidly growing segment of the multi-billion dollar outsourcing industry. BPO's momentum is increasing. The Gartner Group predicts that BPO revenues will nearly triple from $106.7 billion in 1999 to $301 billion in 2004. A recent study by Accenture and the Conference Board revealed that Fortune 1000 companies are increasingly outsourcing HR functions because of ongoing pressure to reduce costs, improve service to employees and maximize resource availability across their organizations.

According to vendors, analysts and other industry experts, the benefits afforded by BPO are:

• Internal resources not available
• Shared risk with the outsourcer
• Reduce & control operating costs
• Free capital for use in core activities
• Improve company focus
• Free internal management for other purposes
• Function is difficult to manage effectively
• Access to world-class expertise
• Accelerate re-engineering benefits
• Capital infusion

Companies who have outsourced a business process report similar benefits. These benefits have remained fairly consistent over the past several years. In 1998 PWC and Yankelovich partners conducted a survey of the top decision makers in firms that have completed at least one BPO deal. Their key findings have subsequently been corroborated by the research I conducted in writing this article - BPO has had, and continues to have, a compelling value proposition:

• Increased administrative efficiency
• Focus on the core business
• Increased shareholder value
• Improved levels of service
• Maintain or improve competitive edge
• Help meet changing customer demand

If Business Process Outsourcing, in general, presents a clear opportunity for a firm to improve operations and reduce costs, what is the business case for outsourcing the Human Resources function? First and foremost, the HR function has become an increasingly critical area of the enterprise:

• “50% of a CEO’s business challenges are directly related to HR…”
• CEO’s are raising their expectations of HR performance, demanding
  • Measuring & managing organizational process
  • Enabling a consistent global culture
  • Creating a learning organization
  • Improving knowledge management
  • Developing performance-based employee relationships
  • Improving HR management
    

The outsourcing of the human resource function forges value-added links between the HR service & products and the business objectives of the enterprise. Outsourcing allows a company to move to a shared service environment, implement an e-HR solution while at the same time, driving towards global simplification. And let's not forget the benefits that come from the adoption of a best practices model on an enterprise wide basis.

The HR outsourcing industry is a maturing business. The industry has grown from an out-tasking focus on paychecks to an estimated industry spend of $20 billion is 2002. The industry has grown by a factor of three in 3 years: in 1999, HR BPO was a $7.3 billion industry.

Challenge the way it’s always been done! Understand why you want to outsource and how that becomes a tool into meeting your overall business plan. What worked for another company won't necessarily work for yours. And following someone else's strategy doesn't get you ahead, but merely allows you to stay in the same race.

Take BPO seriously.
Companies should take time in determining what to outsource as well as how they want to outsource.

Get experienced help.
Business consultants and legal advisors can be hired to orchestrate the process, bring in a methodology, create drafts of evaluation criteria, develop contracts, negotiate the terms and conditions of the agreement, etc. They can even manage the initial request for information, thereby maintaining confidentiality and allowing your employees to continue regular work while you gather data.

Consulting firms: Technology partners Inc, Morgan Chambers, Outsourcing Institute, Business and Information Technology Group, TBI, CRUX Consulting

Legal firms: Shaw Pittman, Millbank Tweed, Mayer Brown

You can also send out RFI's and RFP's directly to the providers, especially, if you have been through the outsourcing process and are comfortable with the intricate process.

Deal with qualified and experienced outsourcers. Some of the more capable vendors operating in the Human Resource market are:

Large Providers: Exult, EDS, Accenture/e-people serve, IBM Global Services,
Second Tier Providers: Crux Arinso, Convergis, Unify, Spherion, Synergy, ProBusiness
Targeted Providers: Fidelity, Hewitt, ADP

Understand the cost of the resources spent in performing the function in-house.
This requires that the in-house process be defined, especially at the boundaries where the new service provider will have to interface to the enterprise.

Realize you still must manage the process.
Commit the internal resources necessary for outsourcing to be successful venture. Reassign staff to relieve them of some of their day-to-day responsibilities. Make sure your best people are able to devote sufficient levels of quality time to the project. Some firms have established a Chief Resource Officer role whose responsibility to manage the ongoing relationship, make sure the cost savings are met, the service level agreements are on target and the vendor relationship is intact.

Build a win-win relationship/partnership with the selected supplier.
Be tough but fair. Establish service level agreements early in the relationship. Make the hard decisions on scope of the relationship. Identify the personnel that will be affected and understand the issues around retention and the migration of staff to the service provider. If you transfer people, you must understand the legal and corporate implications of notification periods, severance and your preference on the supplier's retention of the transferred staff. You will also need documentation on current salaries and benefits costs (building a base line). The service provider will need to know this information so it can develop comparable offerings (draft statement of work).

Does outsourcing of your Human Resource function make sense?
Absolutely. Your firm is trying to manage costs, remain competitive and gain access to best of breed technology as well as current best practices. HR BPO is not a magic solution-you must first understand your business, and then build your own case for outsourcing the HR function. The BPO business model should help you accomplish your objectives.
As additional evidence of outsourcing's staying power, the Accenture/Conference Board srvey found less than one percent of previously outsourced functions have been brought back in-house, and virtually none of the companies surveyed planned to take outsourced functions in-house

Once a process is targeted for outsourcing how can you insure that your company gains more than just the financial benefit and how do you minimize risk ? To truly maximize BPO, you must also evaluate the service providers potential to add value to their business-model while reducing the risks and improving the overall control structure.

Questions that must be asked include

• Will outsourcing the process compress cycletime?
• Will outsourcing the process improve quality and customer satisfaction?
• Will outsourcing the process enable improved operational controls and flexibility to respond to and expand business offerings to new markets?

If the answer to any of the above questions is no, then it is likely that you are missing an important opportunity to improve business performance.

Crux’s BPO solutions division ‘Crux tel’ is a premier BPO solutions center that deploys uniquely developed skills at improving back office processes to help you increase revenue and experience measurable growth. We specialize in high-ticket, high volume products and service. Each campaign is tailored to the specific requirements of our clients and designed to work in concert with other marketing efforts.

Our consultants are experts at understanding, analyzing, designing, improving and implementing back-office processes. We are confident that we can improve your processes by streamlining activities, improving the use of current technology, or even putting in new, practical sensible technologies.

The Crux Tel Strategic Process Partnership approach takes BPO to the next, often overlooked step. That is, assessing how the outcome of BPO could also change the way you do business.

It is the integration of these positive benefits into strategic business planning that truly makes the added-value difference. For instance, if through BPO, a specific customer facing process is accelerated, which in turn, improves customer service-levels, then this should be converted into a competitive advantage. The enterprise must include this advantage into its strategic go-to-market practices.

At Crux Tel, we regularly survey our clients as to the quality of our service and their satisfaction. Time after time we hear how our BPO services have not only saved them money, but also, how Crux Tel has helped them modify their business model based on positive changes in operational efficiencies and improved internal controls.

We provide an all inclusive telemarketing and tele services solutions for organizations across different domains by combining the very best personnel, process and progressive technologies and best practices (some developed in house).

Major direct marketing alternatives are direct mail, print, broadcast and telemarketing. Each offers advantages, but the most useful measure in deciding which is best for client campaign is cost-effectiveness.

A direct mail piece generally costs less than a phone call. However, a telemarketing call can answer questions and address particular interests in a way that no printed material can. Furthermore, its "call to action" cannot be easily ignored. So telemarketing typically generates a 6-8 times better response than direct mail. Telemarketing also obtains immediate feedback for quick analysis and strategy shifts. Scripts are edited, calling hours modified, offers sweetened, demographic targets shifted and seasonal variations accommodated-all within days instead of months.

At ‘Crux tel’ over 90% of our representatives are trained in the areas of telemarketing and customer support, most of them being ‘experienced professionals’. Over 90% of them have a business degree and this is a combination that gives us the edge over our competitors.
The business degree gives them an understanding of the domains/ functions and the training and experience provides them the cutting edge capability to handle diverse and difficult situation.

Thus, through our selection and training process, you will have representatives who are older and more mature, are more technically trained, have more confidence, and are more personable than representatives you can find in many other call centers. That's why our clients trust more in us.

‘Crux tel’ has vast experience in lead generation. Over 90% of our current projects are lead generation projects. Our experience has taught us the winning lead generation formula. We do lead generation for two of the top five mortgage companies nationwide. The more you focus on an area, the better you become. ‘Crux tel’ is a specialist in lead generation.

At Crux, we know our customers are our most valuable assets.
We are committed to providing world-class customer service and support. Our dedicated customer service agents are available 24 hours a day, seven days a week, 365 days a year to assist you. Our Customer Service organization has the industry's highest ranking in customer satisfaction.

Trust your customer relationships to a contact center that understands:

• Your customers' value
• Your vision
• Your business
• Your goals
• The pain areas

And addresses them as you want us to.

Advertising, tradeshows, direct mail and web sites all work to get the "message" out to your marketplace. But nothing works like two-way communication to qualify your prospects and take them to the next level.

‘Crux tel’ has a Professional Marketing team skilled in meaningful "conversations" with high-level decision makers. They know how to qualify a prospect and relay the benefits the customer will derive from a specific product or service. ‘Crux tel’ doesn’t use canned scripts or outdated techniques –we use communication specialists to get your ‘message’ across.

Methodology and means

• Inbound solutions
• Outbound solutions
• Lead generation
• Surveys
• Specialty Services
  

CUSTOMISED AND FLEXIBLE
At ‘Crux Tel’ we customize every aspect of our service to fit the customers requirement within the clients specifications. We have unparalleled flexibility with programming, reporting, phone operators, and systems. We use our experience to work in developing the procedures that are best for the client.

TECHNOLOGY
“There is no point in joining the game unless you have the right equipment.”
We provide and utilize the necessary equipment for an effective in-sourcing firm. We make our customers feel as if they are calling the client’s company directly.

Crux Tel’ motivates and convinces customers, either for a trial or continuous usage the products and services that you would want to offer.This is accomplished by employing well-trained agents, customized scripted objection handlers and rebuttals, cross-selling and down-selling, and extensive quality assurance and monitoring.

We recruit aggressive, confident, and enthusiastic, while at the same time patient, good listeners, and quick on their feet. That is why we hire business educated, well trained and experienced professionals on our rolls,instead of high school students. Our phone representatives are in a class of their own.

They are then provided with the right technology, the right environment and right processes to make your campaigns a success.

We call the people of Client’s choice. When we determine that a person is interested in your product and services, we initiate a call to close. If required we introduce this prospect to our ‘feet on street’ agent or the clients’ agents . And the result: it costs less for you to close a sale.

In fact, at Crux Tel’ we can lower client customer acquisition cost by 50% or more. We can ensure that you (incase you would like the option of closing the lead) have qualified leads every day. We would let client agents do what they do best. We'll take care of the rest.

A telecom major takes off and soars with ‘Crux Tel’

The Task:
Crux was commissioned by a telecom major for a mix of market coverage and awarnes raising as well as quality business opportunities for a telecom major lines in the state.
The project was about :

• Making outbound calls to the customers from the data base provided by Client.
• Awareness raising and educating prospects of the value proportion.
• To achieve 20-30 leads per week per head with the data base provided from the client.
• Generating leads and sending the technical person for the closure.

The Outcome:

• Crux was able to make a outstanding business to a telecom major a telecom major through telemarketing closing for about 200 lines per month covering almost all the important places in the state. As well creating ever incr4easing pipe line for its further progress.
• Crux was able to market a telecom major all over the state there by in the country. With the effective teamwork of its uninterrupted telemarketing team.

‘Crux Tel’ provides sales lead generation solutions to companies. With multilingual staff based in Hyderabad, Chennai, Pune, Bangalore, Merut, ‘Crux Tel’ has the skills and resources to assist technology companies to penetrate both domestic accounts. Our systematic methods help your sales team spend more time with companies that are looking to buy your solutions.

‘Crux Tel’ delivers sophisticated lead generation services for complex solutions sold to large organizations, and recruiting channel partners, list building, mail follow-up and other services.
Our approach to Sales Lead Generation is systematic, process driven customer centric and very effective.

We specialize in the following areas

1. Inquiry Management
2. Lead Generation
3. Lead & Prospect Qualification
4. Appointment Setting
5. Comprehensive Reporting, including Web Reporting

We use Sales Lead Generation to qualify and track sales leads on both a pro-active as well as re-active basis with very specific goals, leading to the following

1. Close loop between generating leads & selling product/service
2. Reduce sales cycle time & processing costs
3. Provide qualified leads to sales reps, channel partners, etc.
4. Optimize responsiveness to inquiries
5. Provide measurable and track able results

In order to be successful in this very competitive environment, ‘Crux tel’ also provides Outsourced representatives to incorporate efficiencies, focus and payback into the sales success formula, through:

1. Identifying the right sales opportunities quickly and efficiently ·
2. Developing and nurturing sales opportunities by gathering the right information on their requirements ·
3. Communicating regularly with sales opportunities to increase interest and sales probability ·
4. Ensuring that sales prospects and leads receive high quality experiences ·
5. Leveraging investments made in marketing activities, and increasing revenues with sales force follow up on only the high potential prospects those activities generate ·
6. Keeping highly compensated sales staff focused on real, near term opportunities versus administrative or prospecting chores ·
7. Providing proof of the value of the marketing efforts through effective data capture, feedback and reporting.
   

1. Database management and verification

‘Crux tel’ will successfully update and enhance your existing direct mail or prospect lists by obtaining correct contact information, updated addresses, name spellings, titles and e-mail addresses. Benefits include:

1. Save money by eliminating wasted postage, printing, and people time.
2. your database is updated with names of the current decision makers and old information is cleared out.
3. Direct marketing campaigns are more focused with better information.
4. Communication is expedited because information will be sent to the right people the first time.
   

2. Customer satisfaction
‘Crux tel’ helps clients stay in touch with their customers on a regular basis to gain critical information needed to retain existing customers, secure more referrals and improve marketing results in the competitive marketplace. This process allows our clients to know if they are maintaining quality standards and providing customers the value they expect.

‘Crux tel’ ensures our clients enjoy the benefits of being more informed about their customers' needs in order to build and foster stronger relationships leading to answers to thesde basic and important questions.

1. Is my customer doing business with the competition?
2. What do our customers say about us?
3. Are there customer service or quality issues?
4. How are we perceived in our market?
5. What do our customers want and what don't they want?
6. What are some of the issues that our customers haven't told us?