Business Transformation Outsourcing: The Benefits and Challenges


Business transformation outsourcing (BTO) is a method that has become very popular in past few years in the world of business. It should not be mistaken for traditional outsourcing, because it offers more responsibility towards outsourcers (customers) by providing them with long-term contracts and removing deadlines out of the equation. BTO focuses on long-term quality improvements, by following new trends and implementing them into the business process at the same time.

Here is a list of the benefits and challenges of BTO implementation.

Improved Performance

Every business can hit a wall from time to time, fixing a certain mistake and improving the process only to be somehow stopped again by the same problem. Undiscovered, underlying issues can easily become a chronic illness of your business venture, if you don’t efficiently solve them in time.

This is why many companies decide to go for the BTO model and cooperate with a performance transformation specialist. This way, you can set up priorities for your business across all company departments, with a specialist overseeing and coordinating the whole process. Performance transformation also addresses employee engagement in your company, by implementing solutions that have a direct impact on the whole company’s culture.

Quick Adaptation of Service Models

Unlike traditional outsourcing, BTO provides a company with a possibility to quickly respond to changing customer requirements by being aware of the whole business process. Many companies pay extra attention to every stage in the customer experience cycle. BTO is a perfect solution for companies that are interested in working on customer retention and referrals.

Reduced Risk During the Transformation

Every change you want your business to undergo can result in certain complications that can mean the difference between succeeding and failing. If you opt for BTOs, you will get a chance to work with partners who already have experience in that specific field. Getting to know all the risk factors that can develop during large-scale changes will ensure your business operation can undergo this stage as smoothly as possible. For instance, BTO has proved to be very good when it comes to outlining inefficient assets that may cost you your success, if you continue to fund them.

Efficiently Meet Demands

It is of the utmost importance for your business to be able to quickly adapt to the new demands of the modern market. As you know, the market is changing very fast and it is already oversaturated. BTO can help you efficiently introduce new services or products with better success, at same time enabling your venture to explore new customers and markets, ensuring stable revenue growth. As you know, the most demanding part during this micro and macro transformation period is your company’s infrastructure development. BTO can provide you with connections that can help you adjust your infrastructure, so that it can meet the conditions of a volatile market.

Challenges That May Lie Ahead

Whenever you decide to outsource certain projects, you are going to face problems that need to be resolved very quickly in order to get the most out of the team you’ve outsourced the work to. You should also be aware that BTO projects are very likely going to have an impact on multiple levels of your organization. This is why you need to establish a climate where constructive criticism will be accepted with no reservations.

Also, keep in mind that the transformation is a process that all of your departments will have to undergo. It is very important to involve them right from the decision-making phase, because this will provide you with an insight into how flexible some of your departments are.

Another challenge that may arise is the difference between your own and the goals of the company you are outsourcing your work to. Before putting up a project, clearly establish your goals. This way, you will avoid any misunderstandings, and later on, you will be able to fine-tune your goals with the people you are outsourcing to.

Don’t ever forget about your existing customers. Meeting their demands should remain your primary goal in any BTO project. It is a good idea to make success rates a part of your BTO contract. Also, keep in mind that BTO projects are not a small investment. Make sure to have enough capital to maintain your business operation during this transformation period.

As you can see, BTO is method that can become a very powerful weapon in the hands of your management staff. It will keep your company actively involved in the entire outsourced operation, providing you with valuable insights into how your business is conducted. By adopting this method, your company will be ready to meet the requirements of changing markets, while keeping control of the service provided by the outsourcers.

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