Prevent Risks in Your Outsourcing Strategy with LMS Training
If you are an executive or manager who has implemented a BPO (Business Process Outsourcing) strategy, you know that a great deal of work goes into maintaining a relationship with the service provider and dealing with risks that such strategies involve. Maintaining a BPO relationship and mitigating risks is often a chore that costs an organization a great deal of time and energy–and consequently, money.
For this reason, becoming educated on BPO risk assessment and ORM (Outsourcing Relationship Management) is a must for any BPO manager. Of the myriad LMS (Learning Management System) courses out there for executives managing an outsourcing relationship, the most effective course covers not only how to maintain an outsourcing relationship, but how to assess and prevent the risks involved. In order to reap the benefits of business process outsourcing, any potential problems need to be prevented before they happen.
The first critical move, you may think, is choosing the right service provider. Not doing so can result in unnecessary costs to your business, and even make the BPO a failure. However, if you’re considering an LMS course on BPO risk management, you are also faced with the task of choosing an LMS provider. For a limited time, Coggno is offering a free trial on their system.
Click this link to try Coggno’s learning management system for your BPO management training.
There are a few potential risks involved in a BPO relationship–and the number increases when the relationship with the service provider is conducted exclusively via internet, and when the work assigned to the provider is internet-based. The internet’s vast geographic reach, ease of access, and anonymity call for close attention to maintaining secure electronic systems, intrusion detection, as well as user authentication, verification, and authorization. Understanding how to manage an outsourced relationship with these risks in mind will ensure that any related and potential dangers are avoided.
Reputation risk, compliance risk, operational risk, and strategic risk are four main BPO dangers for which an LMS course can help you prepare.
Reputation risk may be one of the most important to avoid. As Benjamin Franklin said: “It takes many good deeds to build a good reputation, and only one bad one to lose it.” Reputation management is therefore an essential aspect of an LMS outsourcing management course. Reputation risks could result from poor service from the service provider, or from customer interaction that is inconsistent with the quality and standards of your organization. It can happen when the service provider’s practices are inconsistent with your business practices. Remember that the service provider is, for all intents and purposes, an extension of your organization, and any act on its part is a direct reflection on your organization.
Compliance risk occurs when consumer or legal compliance controls are not sufficient, or when a service provider has insufficient control systems. Operational risk can happen as a result of technology failure, insufficient financial capacity to complete responsibilities or offer remedies, and errors. Finally, strategic risk can result from adverse business decisions and can lead to adverse effects to earnings or capital.
An LMS course can train managers on the issues involved in outsourcing relationship management, including how to assess risks, choose a service provider, document a contract, and monitor progress and results. One critical element of risk assessment is determining the capability of the service provider to provide the necessary level of service. The process of choosing a service provider must include adequate time for executives to evaluate proposals and information the provider offers about the service.
An LMS course should also train managers to manage a contract in a BPO relationship. This includes tracking, measuring, and ensuring future results, penalizing failure, preventing failure, and creating performance measurements. These measurements should not only focus on current performance and results, but also respond by providing proactive solutions and predictions. Another part of contract management is a quality assurance approach which governs the processes and the service delivery of a BPO group.
If you’re outsourcing work to a third-party service provider to perform long-term activities, an LMS course is essential. Perhaps you already know a thing or two about managing an outsourcing relationship and preventing risks involved in BPO strategies.
You can avoid risks in your outsourcing strategy by conducting training courses using Coggno’s LMS. For a limited time you can try the system for free.
Coggno.com provides high-quality LMS platforms world-wide.