The best BPO suppliers evaluate their team`s performance using agreed KPIs that are monitored and reported weekly to ensure the quality of work during the month. These measures are monitored and declared in addition to the measures agreed for the level of service agreement. Figures are communicated to the company through a real-time dashboard and/or monthly audit. Ultimately, the key to exceptional customer service comes down to customer satisfaction. But making customers happy while providing efficient service and cost control can seem like contradictory efforts. The most common S.A. in the area of after-sales services in the OPL sector helps to reconcile and harmonize these objectives. Before establishing formal service level agreements, the feature company had two measures: 1) the timing of the order confirmation and 2) the conclusion of case filling rates. The indicators measured were “all green” (i.e. they were within performance expectations), but the companies served were not satisfied. SLAs in the BPO industry are ultimately determined by the unique requirements of an organization and the metrics that are most important to its success. There really is no “One Size fits all” set of metrics.

In this blog, however, we give an overview of the valuable service level metrics that companies can take into account as part of their BPO contracts. If this is done correctly, the SLAs in BPO ensure that both parties understand their responsibilities and focus on the right areas, while the metrics used to measure service are defined. They also create accountability and communication, create a dialogue on key issues in the process, and provide corrective action and detailed actions when agreed service levels are not met. As more and more companies move from a decentralized “close-to-business” design for cash-ordering processes to transnational, regional or global designs for shared services, the need to set clear service expectations quickly becomes apparent. While the nature and complexity of service level agreements (if used) can vary widely, the purpose and benefits of defining clear expectations and responsibilities are the same. The AP-SLA may require the BPO provider to achieve a 98% accuracy rate for invoice processing, which significantly reduces the amount of errors. Another client may prioritize processing speed to avoid residue build-up.

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