BA 204 (Business Process Outsourcing)

MODULE 4
GROUP 3

MEMBERS

Lizzie Janolino

Transition Management is the set of activities that transpire after a BPO contract is signed
that implements or executes the detailed movement or transfer of process from the client to
the service provider.

Transition Manager is responsible for migrating the function or process from the client's
location or organization to the service provider or outsourcing organization.

● a transition manager needs to be an effective communicator, as the role requires

extensive interaction with the clients.

Transition Manager variety of skills and competencies:

● Needs to have a strong project management skills

● Needs to be comfortable in working cross-cultural environment
● Needs to have a thorough understanding of the existing business and legal process,
as well as emerging technologies.

2 Common Strategies followed in Migrating a Function

Lift and Shift - most common methodology used. This approach is used for migrating when
the process is mature.

*Phases*
1.) Move the current process to the service provider without changes or improvements
2.) Stabilize
3.) Re-engineer the process to achieve efficiency gain- produce same output, less FTEs
● modify the process
● Add end- user or strategic automation
● Move the current process into a production line
● Negotiate elimination of unnecessary outputs
Chequeemae Silvestre
Lift and Shift- is also known as re-hosting. It is the process of migrating an exact copy of an
application or workload with minimal or no changes at all.

Lift and Shift: An Essential Guide | IBM. (n.d.).

https://www.ibm.com/topics/lift-and-shift#:~:text=the%20next%20step-,What%20is%2

0lift%20and%20shift%3F,to%20public%20or%20private%20cloud.

Items to Consider
1. Process change will not affect process control points or output can be done by
service provider independently
-Onshore (happening on or near land) approval of process changes is a good
practice
-Onshore review of the change impacts regulatory control points
2. Major effort: post go-live reengineering- refers to any period of time after the service
provider has assumed control of the outsourced activity and is at a decision point to
initiate a reengineering initiative.

With Lift and Shift, change in moving a process, change in moving a process is easy.
Most of the efforts will happen after the service provider receives the process being
outsourced by the client. This also means that most of the decision-making in the
reengineering process would come from the service provider.

Reengineering- the fundamental thinking and radical redesign of business processes

to achieve improvements in critical contemporary modern measures of performance,
such as cost, quality, service, and speed.

Wikipedia contributors. (2024, February 20). Business process re-engineering. Wikipedia.

https://en.wikipedia.org/wiki/Business_process_re-engineering#:~:text=The%20most

%20notable%20definitions%20of,%2C%20service%2C%20and%20speed.%22

-Transition phase can be easy especially if “people and processes” are moved. This
may take 3 to 4 months only
-Onshore has the risk of losing political will to reengineer processes after a while

Advantages of an “as is” basis process migration:

● Training the new team is easier, as the process is well understood and documented
 ● Existing employees at the donor location are available to support the process in case
of disruptions or instability
● A fresh set of eyes (the new team) look at the process from a fresh perspective, often
resulting in process improvements and enhanced controls

Assuming that the process to be outsourced is working fine, the company that outsources
the task just needs to give the documentation of that certain process and provide training for
the service provider. Should the service provider see ways to improve the task, adjustments
can be made.

Transition Strategies & Knowledge Transfer Framework

Re-engineer and Migrate
● Definition
● Items to Consider

Definition
Fundamental rethinking and radically redesigning of the business process to achieve
dramatic improvements in critical measures of performance such as cost, service, and speed

Unlike “lift and shift”, improvements or changes in the process to be outsourced are made
before outsourcing it to the service provider in this strategy.

Items to Consider:
● Useful when the process is either broken and requires fixing, or is due to undergo
significant change in the near future (systems change or process change)
● In such cases, it may be important to utilize the expertise of the existing team (which
is built over several years) to drive the change, before it is handed over to the new
team

In this strategy, the client company assumes the responsibility of fixing or improving a certain
process before handing it over to the service provider.

● Company that outsource industry common processes to a market-leading service

provider will generally follow service provider processes
● Company changes its processes as part of transition to service provider

Anthea Posadas
The following are the outsourcing issues or errors that can be associate with to a few pitfalls
during transition but can be avoided if the transition manager constantly re-focuses attention
on these things.

● Inadequate Investment and Sponsorship

> Inadequate financial capacity to fulfill obligations/ provide remedies
> Without appropriate investment you can’t fully achieve your goals and
objective. You may achieve faster and cheaper but your service quality will fall off a cliff or
you can achieve better but with slower and much more restricted services that are more
expensive.
● Unclear Scope of Work/ Uncear Roles and Responsibilities
Unclear scope of work can lead to confusion, delays, conflicts and low productivity.
If it’s very clear that the work is assigned to that specific work. We all know who to
look for if the job is not yet done or there’s a problem regarding to that job.
● Training Shortcuts
Newbies need to be train. Training will gives employees a better understanding of
their responsibility and the knowledge and skills they need to do that job. This will
improve their confidence which can positively impact performance. Training has a
direct impact on organization’s productivity and performance.
● Not Retaining the Experts
Having experts in a company gives many benefits. Retaining the experts can
help to maintain the quality of work and ensure that the organization remains
competitive. It can also saves an organization from productivity losses.
Experts will also be the one that will train the newbies.

The success or failure of a transition project is fundamentally measured in two aspects.

● Technology Readiness
State of readiness of the enabling hardware and software to support the
ongoing operations.
The following questions may give us an assurance to this aspect:
> Do we have right type of computers?
> Do we have the right number of computers?
> Do we have generators in place just in case there is a power outage?
> Are we using the latest most compatible application?

● Manpower Readiness
State of he readiness of the operating staff; hired, trained, and skilled for the
service processes.
In this aspect we are looking at the knowledge ad skill of the workplace.
If the employee has knowledge and skill for he work, he/she would still beat
the job using any kind of equipment for it.

Transition Effectiveness can measured through:

● Financial Benefits
It is important to quantify the real cost of the function before off-shoring
(Baseline cost) and the cost of the offshore team on an ongoing basis.
> Cost related to moving the function to the ne team should be tracked
separately as project costs.
> Capturing these cost elements enables comparison of baseline costs with
current costs, and provides an accurate measurement of the saves.

● Performance of the team

Primarily done by developing performance metrics.
 Usually subject to a testing phase to determine reasonability of the service
measures- also known as the ‘baselining’ period.

Ethan John R. Benlot

DOCUMENT READINESS
-Document readiness in managing outsourcing transition involves ensuring that all
necessary documents, procedures, and information are properly prepared and organized to
facilitate a smooth transition from in-house operations to outsourced processes. This
ensures clarity, efficiency, and compliance throughout the transition phase.

​ Inputs:
● Think of inputs as all the materials you gather before starting a project. In our
case, it's the information and documents needed to move a task or process
outside of the company.
● Example: Imagine you're planning a surprise birthday party for a friend. Your
inputs would be things like the guest list, party decorations, and the cake
order.
​ Processes:
● Processes are the step-by-step actions you take to get things done. For
documentation readiness, it's the way you organize and prepare all the
paperwork and information for outsourcing.
● Example: If you're baking cookies, the process involves gathering ingredients,
mixing them in the right order, and baking them for the correct amount of time.
Similarly, in outsourcing transition, you need to organize documents step by
step, like gathering contracts, organizing files, and ensuring everything is up
to date.
​ Output:
● Output is what you get as a result of your efforts. In this case, it's the finalized
documentation package that's ready to be handed over to the outsourcing
partner.
● Example: After completing your homework assignment, your output is the
finished paper that you hand in to your teacher.

Liezl Cabra
Communication
● - It is the key especially to possible alterations the clients might bring up such as
change in schedule of performance, materials, instruments and people. - Minimizes
misunderstanding during early production period. Clarity in the means of
communication could alter the success of a project as it minimize the risks and
preparation for unexpected problems that will occur.
● - Communication channels for output to be explicitly defined. 5 types of
Communication channels
1. In person or face-to-face communication
2. Emails
3. Formal business document
 4. Phone calls
5. Video Conference

Supervision
● Onshore supervision and what will be reviewed/checklist should be defined.
- The readiness check-list is a document that usually includes a lot of items composing of all
the specific preparation of various tasks that need to be completed before the provision of
services can begin. Each item listed in the check-list has a status indication such as– not
ready, in process or complete. There should also be indications with regards to a malfunction
for further assessment– and reports regarding the preparation progress can be provided on
a monthly, weekly or even daily basis, as per the agreement with each client.
● Some country regulations require clear trail of supervisory control by an
onshore person.
- An immediate supervisor or managing officer will be listed as an immediate contact in
cases where legal queries might arise as well as to monitor the condition of each instrument
or resources.
- The responsibility for the output, such as financial statements, belongs with a responsible
onshore officer. This means that the person in charge of generating or managing the
financial statements is held accountable for their accuracy and regulatory compliance. This
person is responsible for ensuring that the information supplied is correct and reflects the
organization's financial status. To ensure that the financial statements are accurate, the
onshore officer must apply precautions and follow to proper accounting principles.

Carl Vincent Latoza

READINESS CHECKLIST
- a comprehensive document outlining the necessary steps and criteria to ensure a
smooth transition and successful execution of outsourcing tasks. It typically includes
items such as infrastructure setup, technology readiness, data security measures,
training requirements, and communication protocols. Each aspect is carefully
evaluated to ensure that both the client and the outsourcing provider are fully
prepared to begin operations seamlessly.

● The checklist serves as a roadmap for both parties, guiding them through the
preparatory phase and highlighting areas that may require attention or improvement
before the outsourcing process commences. By systematically addressing each item
on the checklist, stakeholders can mitigate risks, minimize disruptions, and optimize
the efficiency and effectiveness of the outsourcing arrangement. Ultimately, a
well-prepared readiness checklist sets the stage for a productive partnership and
helps achieve the desired business outcomes.

Advantages of Readiness Checklist:

● Ensures thorough preparation: Helps ensure that all necessary steps and
considerations are taken into account before starting the outsourcing process.
 ● Minimizes risks: Identifies potential issues or gaps in readiness, allowing them to be
addressed proactively, reducing the likelihood of disruptions later on.
● Facilitates communication: Serves as a clear and structured tool for communication
between the client and outsourcing provider, ensuring alignment and understanding
of expectations.
● Improves efficiency: Streamlines the preparation phase by providing a systematic
approach, saving time and resources in the long run.

Disadvantages of Readiness Checklist:

● Overreliance: There's a risk of stakeholders becoming overly reliant on the checklist
and overlooking other critical aspects not covered in the document.
● Rigidity: A too rigid checklist may not account for unexpected changes or unique
circumstances, leading to inflexibility in adapting to evolving requirements.
● Complexity: Creating and maintaining a comprehensive readiness checklist can be
time-consuming and resource-intensive, especially for complex outsourcing projects.
● False sense of security: Completion of the checklist may give a false sense of
readiness, leading to complacency and overlooking ongoing monitoring and
adjustments as needed.

INPUT
- In Business Process Outsourcing (BPO), "INPUT" refers to the data, information, or
materials provided by the client or customer to the outsourcing service provider for
processing or handling as part of the outsourced business function. This input can
take various forms depending on the nature of the outsourcing task, such as
customer inquiries, transactional data, documents, or digital files.

Considerations of Input

1. PROPERLY DESCRIBED INPUT refers to data, information, or materials provided to a

process or system in a clear, accurate, and structured manner, with sufficient detail and
context to ensure effective processing or handling. Properly described input typically
includes the following characteristics:

● Clarity: The input is presented in a clear and understandable format, using language
and terminology that is familiar to both the sender and the receiver.
● Accuracy: The input is free from errors, inconsistencies, or ambiguities, ensuring that
the information provided is correct and reliable.
● Relevance: The input is relevant to the task or process at hand, containing only
information that is necessary and applicable for achieving the desired outcomes.
● Completeness: The input includes all required data, information, or materials needed
for the process or task to be carried out successfully, without any omissions or
missing elements.
● Structure: The input is organized and structured in a logical manner, making it easy
to interpret, analyze, and process by the recipient.
● Context: The input is accompanied by relevant contextual information or instructions,
providing background or additional details that help clarify its purpose or significance.
 By ensuring that input is properly described, organizations can improve the efficiency,
accuracy, and effectiveness of their processes and systems, leading to better
outcomes and enhanced performance.

2. METHODS OF ACQUISITION in input refer to the various ways in which data,

information, or materials are obtained or gathered by a company for processing or handling
as part of its business operations. These methods can vary depending on the nature of the
data and the specific requirements of the business process. Some common methods of
acquisition in input include:

Overall, the choice of acquisition method depends on factors such as the type of data,
volume of data, accuracy requirements, cost considerations, and technological capabilities of
the company. Employing the appropriate acquisition methods ensures that companies can
effectively gather the input data needed for their business processes to operate efficiently
and deliver value to customers.

3. The "LANGUAGE OF INPUT" refers to the specific language or linguistic format in which
data, information, or instructions are provided to a system, process, or individual for
processing, analysis, or action. In the context of business process outsourcing (BPO), the
language of input could vary depending on the requirements of the outsourcing task and the
preferences or specifications of the client.

For example, if a company outsources customer support services to a BPO provider, the
language of input could be the language in which customer inquiries or complaints are
received, such as English, Spanish, Mandarin, etc. Similarly, if the outsourcing task involves
data entry or document processing, the language of input would be the language in which
the documents or data are provided to the outsourcing provider.

Ensuring clarity and consistency in the language of input is essential for effective
communication and accurate processing by the outsourcing provider. Clear guidelines and
standards regarding the language of input help minimize misunderstandings, errors, and
delays in the outsourcing process, ultimately contributing to the successful achievement of
the company's objectives.

4. The TIMING OF INPUT in Business Process Outsourcing (BPO) refers to when the client
or customer provides the necessary data, information, or materials to the outsourcing service
provider for processing or handling. This timing is crucial for ensuring the smooth flow of
operations and meeting service level agreements (SLAs) or deadlines.

The timing of input can vary depending on the specific requirements of the outsourcing task
and the agreed-upon terms between the client and the outsourcing provider. In some cases,
input may need to be provided in real-time, such as customer inquiries or transactions that
require immediate processing. In other situations, input may be provided on a scheduled or
periodic basis, such as daily, weekly, or monthly data uploads.

5. In the context of business processes, DEPENDENCIES in input refer to the relationships

between different inputs or data elements that affect the execution or outcome of a particular
task or process. Dependencies indicate the reliance of one input on another for accurate and
meaningful processing.

For example, in a manufacturing process, the production of a final product may depend on
the availability of raw materials as input. If the raw materials are delayed or of poor quality, it
can impact the production schedule and the quality of the final product.

Similarly, in a development project, there may be dependencies between different modules

or components of the software. Changes or updates to one module may require
corresponding adjustments in other modules to ensure compatibility and functionality.

Identifying and managing dependencies in input is crucial for ensuring the smooth flow of
operations and minimizing disruptions or errors in processes. By understanding the
interdependencies between various inputs, businesses can better plan and coordinate their
activities, allocate resources effectively, and mitigate risks associated with potential
bottlenecks or delays.

Julien Umadhay
Adequate Documentation: Process Checklist
a) Are the process properly documented
b) Are hand-offs to other parties (internal and external) shown in the documentation
c) Are interim or “flash” reports documented
d) Are delivery time/day-of-month/period targets documented

a) Are the processes properly documented

- What documentation standard
Documentation standard are rules that guide the creation and distribution of
documents within a team or organization.

Using a specific standard is not important; it is important that a standard is

consistently used

Must documented actual outputs sufficiently to allow a qualified performer to replicate

output

. Must be a simple and straight forward.

b) Are hand-offs to other parties (internal and external) shown in the documentation

- Clear documentation of hand-offs show areas of “process fragmentation”

Process fragmentation in business refers to the situation where a business process is
broken down into smaller, disconnected parts or stages.
- Hand-offs are transfers of the task to other people before continuing
- Aggregate items to review in a single-sign-off step at the end
Maybe be better to require enriched data prior to start of the process

c) Are interim or “flash” reports documented

 - Flash reports allow onshore supervisors to do early process check. Regulatory
submission deadlines are hard, hence critical outputs may need intermediate review
A flash report is a summary that provides a periodic snapshot of a company's key
performance indicators and key operational figures. The senior management team can use
these weekly flash reports to assess how the business is performing rather than making
reactive decisions based on quarterly reports.

Gini. (n.d.).
https://www.gini.co/finance-glossary/flash-report#:~:text=In%20business%2C%20a%20flash
%20report,decisions%20based%20on%20quarterly%20reports.

- Ideal that process continue without waiting; only stop by exception

d) Are delivery time/day-of-month/period targets documented

-Indication of required delivery time/date important in the process documentation

-Quick look at input receive and output delivery allows check of process ease and staffing
requirements
By quickly examining the input received, the processing of that input, and the
subsequent delivery of output in a business process, one can assess the ease of the overall
process and identify staffing requirements. By understanding how smoothly information or
tasks move through a system, it becomes possible to gauge the efficiency of the process
and determine whether the existing staffing is adequate for optimal performance.

How up-to-date is the documentation

-How often is document re-certified. Are the “live”/modified immediately whenever process is
changed
It's about making sure the paperwork matches what's actually happening, and how
quickly it gets updated when things change. This shows an understanding of keeping
everything in sync and being responsive to updates in the way things are done.

● Documentation is valuable only up-to-date;

● . Easy to quickly assess live-status of documentation

Marcelino S. Debuque III

Adequate Documentation: Output

Considerations for Outputs

1. Properly described output - This is all about clearly describing the final output.
Some parameters that one can associate with this are: quantity, color, weight, and
volume.
2. Method of Transmission - This means specifying how the complete work will be
sent to you.
 3. Language of output - It is all about clarifying the language the final product should
be in. It is also about using terms understandable to people who needs the output.
4. Timing of the output - This is setting a clear deadline for when the work needs to
be completed.
5. Dependencies - Considering if the outsourced work relies on something else being
finished first.

Are outputs complete documented

In key management reports, down to the colors of certain data. Details of the product should
be listed here.

If output is input to another process, best that a structured template is followed to help keep
the reports clear and easy to understand.

Periodic changes in outputs (and in the format/contents within output) are normal, but the
change requests should be documented, cost-justified, and properly approved.

Adequate Documentation: Communication

How are the outputs to be communicated

Transmission channel has to be clearly stated

e.g., email, file upload into MS SharePoint

As input to another process - in workflow or direct entry to another system

Kritz Kenneth Diansen

Adequate Documentation:

Supervision

Supervision is a process of overseeing and managing a project, task, or group of individuals

to ensure that they are performing their duties effectively and efficiently.

Supervision also involves monitoring the team's progress, identifying any issues or
challenges that may arise, and providing solutions to mitigate them.

Consideration for Supervision:

When planning for a project, there are several factors to consider, such as whether the
supervision will be onshore or offshore, the staffing and equipment needed, and the
motivation of the team. Additionally, country regulations should also be taken into account to
ensure compliance and avoid any legal issues.

● Onshore - Onshore supervision involves having a supervisor physically present at

the project site or in the same location as the team. This type of supervision may be
 necessary for projects that require frequent face-to-face meetings, direct oversight, or
hands-on management.
● Offshore - Offshore supervision, on the other hand, involves managing a team
remotely, often from another country or location. Offshore supervision requires strong
communication skills, the ability to manage a team remotely, and the use of
technology.
● Staffing, Equipment, Motivation

Staffing - The number of staff members should be determined based on the

workload, the complexity of tasks, and any regulatory requirements.

Equipment - Ensuring that the team has access to the appropriate equipment
is vital for productivity and safety.

Motivation - A motivated team is more likely to perform well and contribute

positively to the organization.

● Country Regulations - It is to acknowledge and respect the varying legal

frameworks and country-specific regulations when providing guidance or assistance.
Ensures that we adhere to the law and maintain a safe environment for all parties
involved. By being aware of and adapting to these rules, we can prevent potential
legal issues and promote a harmonious working atmosphere.

Adequate supervision can help ensure the success of a project by ensuring that tasks are
completed on time and to the required standard.

Where are the “Onshore” supervision points

● Some country regulations (US) require supervisory control by an Onshore person.

Ex. Ownership of the output is with the onshore person

"Onshore" supervision points refer to the requirement for an individual based within
the country's borders to have oversight and control of specific operations. This is
done to ensure compliance with local laws and maintain transparency.

● In onshore exercises who has “supervisory control”

"Supervisory control" typically refers to the authority and responsibility held by a

designated individual or a group of individuals to oversee and manage the overall
operations, safety, and compliance with established guidelines.

● In shared services, next stage of evolution is true centers of excellence where work
and supervision is done in another location.
Summary

● Onshore processes with adequate documentation have a greater readiness for

offshoring.

When onshore processes have adequate documentation in place, they become more
suitable for offshoring. Proper documentation plays a crucial role in facilitating the
offshoring process by ensuring smooth communication, better understanding, and
successful execution of tasks in a different geographical location.

● Documentation in inputs, processes, outputs, communication channels, and

supervision allow a service provider (third-part or shared service center) to estimate
cost of doing the service offshore with more certainty.

Documentation of Inputs - Detailed information about the resources required for

the service, such as materials, equipment, and software, helps the service provider
accurately assess the costs associated with procuring and maintaining these
resources offshore.

Documentation of Processes - By providing a clear understanding of the

workflows, tasks, and responsibilities involved in the service, documentation allows
the service provider to estimate the time and effort required for each stage of the
process. This helps in calculating labor costs more accurately.

Documentation of Outputs - Understanding the expected deliverables and quality

standards ensures that the service provider can allocate resources and personnel
accordingly to meet these requirements. This, in turn, helps in estimating the costs
associated with producing the desired outputs.

Documentation of Communication Channels - Proper documentation of

communication channels and protocols helps the service provider account for the
costs related to maintaining effective communication between onshore and offshore
teams. This includes technology expenses, such as software licenses and video
conferencing tools, as well as potential language translation services.

Documentation of Supervision - Detailed information about the supervisory

structure, performance metrics, and reporting requirements enables the service
provider to estimate the costs associated with managing and overseeing the offshore
team. This includes staffing requirements for onshore and offshore supervisors, as
well as the costs of implementing monitoring and quality assurance processes.

Adequate documentation in business is essential for maintaining a clear record of

important information, processes, and transactions. It helps ensure transparency,
compliance with regulations, and effective communication within the organization.