Managing Business Process Outsourcing NMIMS April 2024
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Managing Business Process Outsourcing NMIMS April 2024
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NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Managing Business Process Outsourcing
Internal Assignment Applicable for April 2024 Examination
Assignment Marks: 30
All Questions carry equal marks.
All Questions are compulsory
All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.
All answers to be written individually. Discussion and group work is not advisable.
Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
Students should write the assignment in their own words. Copying of assignments from other students is not allowed
Students should follow the following parameter for answering the assignment questions
1. Many companies have considered outsourcing a broad range of business processes, including IT services, to achieve critical cost savings. Although this kind of agreement can be structured in many ways, a thoughtful contractual arrangement, with appropriate cost sharing, pass-through mechanisms and pricing adjustments, allows the parties to share certain risks and at the same time establish a productive
and profitable relationship. Explain BPO contract negotiation and monitoring and their risk impact? (10 Marks)
2. Organizations typically undertake periodic process improvement that are focused on specific business processes and may or may not align with the business strategy. In order to realize all the benefits of sometimes disparate BPM efforts, there needs to be an ongoing, organization-wide effort to assess and measure the results and continue to use the successful implementations. A process portfolio is widely considered the answer.
What are the benefits of effective process portfolio management? (10 Marks)
3. For ALPHA Call Center, a leading healthcare BPO company based out of Gulf approached Mera BPO with a requirement to improve their BPO process. The customer’s BPO division handles over a million customer calls every month, but their customer satisfaction levels were plummeting downwards. Even their CSAT was as low as 47%. Since the customer was a part of the healthcare industry, it was unacceptable for the company to find a low level of satisfaction from their customers. Mera BPO’s role was to nail down the causes for the low CSAT levels and then to provide a customized BPO solution that would help the company’s performance to soar.
At the onset of the project, the BPO team at Mera BPO decided to dissect the problem and get to the root cause. Through a detailed analysis, they identified some of the critical issues in the process that were affecting the customer’s BPO’s performance. The following were the requirements of the customer:
There was a linguistic and cultural mismatch between the BPO’s personnel and the client’s customers. The client’s customer base was native Arabs while the BPO employees of the customer (5 male agents and 5 female agents) were not native Arabic speakers. This language barrier made it difficult for the employees to effectively address the culture-specific requirements of the customers
There was a critical need to align the BPO support team with the standard processes that govern BPO functioning. The BPO team also required intensive training in BPO platform management
The BPO’s turnaround time lagged over a period of 7 days in contacting their customers after discharge
The support BPO team worked only 5 days a week (Monday to Friday) and only between 9 am to 5 pm. This posed a serious limitation for the customers who wanted to contact our client
The customers wanted to make sure that they were talking to an Arab agent and would ask the BPO employees for their last name
Female patients of our client would submit contact numbers of the male members of their family instead of their own
The customer reach percentage was less than 2%
After identifying the unique problems that were affecting our client’s BPO, they deployed one their best teams to implement a customized BPO platform. MeraBPO’s skilled BPO team refurbished the entire BPO process of the customer by adopting the following measures:
1. BPO Service Timings: they increased the support time span by a period of 4 hours. Next, they made the support center available from 7 AM to 7 PM. To match the working week of UAE, they decided to change the work days of the BPO to Sunday to Thursday instead of Monday to Friday. Multiple shifts was also introduced to meet the time demand with WFM.
2. Local BPO Agents: they hired a team of native speaking Arabs to eliminate the cultural gaps.
3. Support Infrastructure: they enhanced the infrastructure for the customer’s BPO center and included best-of-breed voice, email and internet facilities. This helped in substantially reducing the turnaround time of the BPO team.
4. Value Added Support Services: they also offered a host of value added services, such as the following:
they extended the 24 hour call support for excess processing requirements during peak hours
The BPO agents were given customized ‘Last Names’ to suit the caller’s country
The DID number was masked based on the caller’s country
The BPO agents were given 20% hand-outs
Culture specific provisions were specially created to record rebuttals from the objections raised by the male family members of female patients
The BPO process of the customer was continuously improvised and enhanced based on Lean and Six Sigma methods
The database of the customer was always kept up-to-date
The BPO application was rectified periodically
Within a short time span of just 2 months, they were able to present the following results to our customer. From an unsatisfactory 47% the CSAT galloped to a whopping 85% – 87%.
The turnaround time was improved by 24%.
a. What were the cultural challenges faced by ALPHA call center and how were these specific cultural challenges met by ALPHA call center. (5 Marks)
b. What are the advantages of outsourcing call center operations of a hospital to a BPO like ALPHA call center? (5 Marks)