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on-site . In order to effectively outsource risk , it ’ s important that organisations partner with a BPO provider to verify that their outfit is financially sound , legally compliant and in a position to manage that risk for as long as is necessary .
What are some of the risks that can be minimised through BPO ? One of the most significant risks in any business relates to employment , but labour relations is not a function that comes naturally to most companies . As a result , the labour component is one of the most beneficial areas to outsource , not only from a risk perspective , but from a cost and efficiency aspect as well . Each business process that is outsourced is thoroughly assessed by the BPO provider to identify inefficiencies and provide solutions that will streamline operations .
PARTNER WITH BENEFITS Change management is handled by the BPO provider throughout , and accountability for the business function is then managed in terms of a service level agreement , with measurable performance indicators . Employment costs move from fixed wage costs , to flexible costs based on output , in terms of which workers are paid for meeting productivity targets .
Quality risk resides with the BPO provider , which further alleviates the risk of wastage . This BPO model also offers businesses significant savings when it comes to catering for seasonal dips in production demand , making it easy for the business to scale as needed without incurring additional labour costs or risks .
Choosing the right BPO provider can be a make-or-break decision for businesses . To avoid making the wrong choice , organisations must look for an established , reputable partner with a national footprint , in addition to being financially sound and legally compliant themselves . It is also necessary to select a partner that is transparent , as this is necessary in order to build and maintain a mutually beneficial relationship that results in the effective management of risk while sharpening the competitive edge . RACA
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RACA Journal I July 2022 www . refrigerationandaircon . co . za