Steps to a Business Process Outsourcing Agreement

Step one

In the initial phase, an organisation must ask:

  • Why are we seeking to work with a business process outsourcing service provider?
  • What are the risks?
  • Do the benefits outweigh the risks?
  • What sort of relationship do I expect from a BPO company?
  • What sort of relationship will they expect?
  • Don’t take anything for granted.
  • How will we measure results and whether the relationship is working?

Step two

Analyse your business needs in the areas that you are considering outsourcing

  • Are you looking to save costs/money?
  • Are you looking to increase revenues?
  • Are looking to re-allocate resources?
  • What will happen to personnel who are currently performing this particular function now?

Step three

Identify the right supplier.

  • Use Conjungo’s ‘Find Outsourcing BPO Supplier’ search facility on the right hand side of this page or talk with the featured Outsourcing BPO provider.
  • Look through magazine and online reviews.
  • Talk to others who have recently installed an e-mail archiving solution in the same area as you.
  • Use forums, networks and personal contacts to obtain recommendations.

Ask questions such as:

  • Who has the experience of working with a company of the same size and profile as yours?
  • Are any of those suppliers local to where you are located?
  • How many similar installations have they made?
  • Ask for references – ensure that the company is capable and reliable.
  • Talk to a couple of their customers in order to see what benefits have been gained and what pains those customers went through when installing the system.
  • Obtain a credit check to ensure that they are financially stable.

Step four

Request a detailed proposal from three or four of your preferred suppliers.

  • Set a deadline for when you need the proposal back.
  • Give out details in advance as necessary to ensure that the suppliers you have selected can give you the best proposal.
  • Go and meet them in person – get a good feel for whether you will be able to work with them.

Step five

Select a supplier.

  • Who best demonstrates that they understand your business and your requirements?
  • Is it cost effective? Have they shown how and where you will save money?
  • Does it clearly demonstrate the functional benefits – rather than just listing particular features? Does the proposal clearly show what the benefits are?
  • Have you spoken to a couple of your preferred suppliers’ customers?
  • Agree on financial terms – Will the service be payable monthly or annually?
  • Don’t agree to anything more than a three year agreement.

Step six


  • Plan a handover with your BPO company.
  • You may need to run your processes in parallel for a short time until the BPO company are fully aware of your systems and operations.
  • Communicate regularly especially in the early days in order to address any questions and issues.