Business Process Outsourcing has become a leading business model of our time. While the increasing pressure to cut cost is still among the primary drivers for this trend, today quality has become a major issue when it comes to choosing an outsourcing partner. Here is an overview of standards and models that help measure and improve the quality of outsourcing services.
Choosing the best out of the best
Toys, clothes, milk, toothpastes – in 2008 we have witnessed numerous widespread product recalls due to poor-quality outsourcing. Clearly, quality has become a critical success factor in outsourcing and is now just as important as cost. Providing poor quality in outsourcing – as in any other business – can have disastrous effects. From paying penalties to rework and opportunity costs, quality-related expenses can take a huge bite out of the supplier’s bottom line. In addition, reputations built over decades can be destroyed overnight.
From cost to quality issues
As established outsourcing providers are besieged by new entrants from other low-cost countries, new sources of service differentiation become crucial to maintain the loyalty of existing customers and attract new ones. There has been a shift from the low-cost factor to a focus on continual ...
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