What are Business Process Outsourcing BPO Agreements?
Business Outsourcing Agreements, or BPOs, are most often used in larger enterprises, where significant specialized activities, such as call center operations, merit outsourcing for cost savings and other purposes.
BPO Agreements Procurement Departments Versus Line of Business
The majority of BPO contract managers fulfill their roles as members of procurement departments, which are created specifically for handling contracts with BPO partners in addition to managing vendors, the supply chain, and other procurement needs. These procurement departments normally have well-defined processes and expectations, making it easy for personnel to thrive.
But what about situations where a BPO contract manager is not part of the procurement department, but instead finds herself reporting to someone in finance or another department? Sometimes this can happen, even in enterprises, when decentralization is a priority. Some enterprises intentionally avoid having large procurement departments that span their organizations in an effort to make their purchasers and contract managers more efficient. There can be side effects using this sort of business hierarchy, especially since those who handle contracts can end up reporting to and seeking advice and permission from superiors who may not be familiar with the BPO process, and who may have a learning curve when it comes to understanding BPO contracts in general and the terms of specific BPO contracts.
One such case was discussed recently in the the IACCM forum. A BPO contract manager settling into a new role with a highly decentralized multi-national firm. Her question was this: “Can a contract manager ever be effective if he/she reports to the Line of Business and not a Global Function?”
Does this describe your work scenario? Although it might not be the typical working scenario for someone who is used to existing in a dedicated procurement environment, BPO contract managers can be successful reporting to Line of Business (LOB). Here are some pointers on how to thrive as a BPO contract manager in a situation where your hierarchy doesn’t directly involve a Global Function.
- Seek to clearly understand and become committed to the business strategy, objectives, and goals of the Line of Business
- Align your contracting expertise and strategy with the goals of the Line of Business. This will build a relationship of trust between you and those you report to, and will cause you to have more influence within the hierarchy.
- Sell the value of contract management (or CM)
If you need help, the IACCM has mentors, reports, presentations, data, and other resources to help you fulfill your contract management role in a situation like that just described.
At Concord, our goal is to simplify the tedious parts of contract management to make contract managers much more efficient than they could be using paper contracts or spreadsheets. Simplifying the contracting process and proving competence and value makes the role of a BPO contract manager much more influential and rewarding.
If you’d like to learn how Concord’s contract lifecycle management platform can help you become a more proficient contract manager, contact us by filling out the form on this page, chatting with us here, or giving us a phone call for help.