Business Process Outsourcing - key benefits of partnership
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In the HR industry, it is often the case that the BPO model is identified with the term Staffing, what are the key differences?
On the Serbian market, staffing services, i.e. agency employment is very often identified with BPO service. Although staffing is certainly a type of outsourcing, the difference is primarily in the responsibility and risk that the service provider takes. Staffing is primarily an administrative level of HR service, while BPO implies partial or complete responsibility for a specific process.
For example, if you have 10 employees on staffing, the agency manages them only administratively, they must have the same conditions as internal employees and their number must not exceed more than 10% of the total number of employees. With the BPO service for employees from this example, the agency takes on operational management, responsibility for productivity, quality and results, as well as financial risk.
The essential difference between staffing and BPO processes is that employees don't need to have the same conditions as the internal team and their number is not limited. Especially important for the client is the SLA/KPI system, which is one of the key elements of the BPO contract. In this way, the client gets the opportunity to monitor, evaluate and financially value the BPO partner. The client never loses control over the process.
What are the key benefits of applying the BPO model?
The BPO model first of all implies the organization's willingness to entrust part of its processes to a BPO partner and thus focus on key aspects of their business. Partnership and mutual trust are key aspects of a successful BPO project. The two biggest benefits of this model are optimization and flexibility.
Optimization means a good overview of the process as a whole, both externally and internally, and formatting that will ensure greater productivity of the outsourced process with unchanged or even better quality. Put simply, if a company in one process with 10 people produces 1000 production units, the goal of BPO optimization is that 10 people produce 1100 units. In this way, we get the opportunity to optimize the workforce or increase the production and sales capacities of the company.
Flexibility is another benefit that comes from our HR background. We know how to recruit, select, train and build good teams. And how can we ensure a sufficient number of such teams in the short term that will see off peaks in the production processes.
What are the experiences of the company MPS Integration as the current holder of the largest regional industrial outsourcing project?
Leading and developing the regionally largest and certainly one of the largest European industrial BPO projects is not only a great responsibility, but also an opportunity for learning, developing and implementing new BPO achievements. It is a production and logistics unit located in central Serbia, with 5 different factories and a logistics center where over 1500 MPS employees are employed. This is practically a company within a company, successfully managed by MPS's 9-person team. In such a large project, the challenges are numerous and the client's expectations are at the highest level, but they also continuously contribute to the improvement of internal processes. Running such a large operation also means we have the capacity to meet even the biggest BPO challenges.
MPS Integration is focused on creating unique business solutions that focus on the optimization and improvement of the client's business processes, with clear and measurable results.
MPS Integration, as part of a system that is a regional leader in the HR industry, represents an expert company in providing Business Process Outsourcing services.
