Business Process Outsourcing (BPO) can deliver major benefits: reduced costs, increased efficiency, and access to specialist expertise. But while outsourcing can be a powerful lever for growth, too many organisations fall into common traps that undermine its value. At Accelerate Procurement, we’ve seen first-hand what makes BPO succeed, and where it goes wrong. Here are the key pitfalls to avoid, and how to get outsourcing right from the start…
1. Focusing only on cost
Cost reduction is often the number one driver of outsourcing. But if cost becomes the sole focus, organisations risk sacrificing quality, service levels, and long-term scalability.
How to avoid it: View outsourcing as a strategic partnership, not just a cost-cutting exercise. Balance savings with outcomes such as improved service, innovation, and business resilience.
2. Poorly defined scope and expectations
Unclear requirements at the outset are a recipe for disputes, missed targets, and frustration on both sides.
How to avoid it: Invest the time up front in clearly defining the scope, KPIs, service levels, and responsibilities. Treat the contract as a roadmap, not just a legal safeguard.
3. Choosing the wrong provider
Not all providers are equal, and selecting based on price alone can lead to mismatches in culture, capability, and capacity.
How to avoid it: Evaluate potential partners holistically. Look at sector expertise, cultural fit, technology platforms, and track record, alongside commercials.
4. Underestimating transition and change management
BPO is not just a contract handover; it’s a transformation. A poorly managed transition can cause disruption, resistance from staff, and productivity dips.
How to avoid it: Build a structured transition plan that covers communication, knowledge transfer, systems integration, and change management. Ensure leadership is visible and supportive throughout.
5. Neglecting governance and relationship management
Some organisations “set and forget” once outsourcing is live, leaving issues to fester and performance to drift.
How to avoid it: Establish clear governance structures, with regular performance reviews, escalation routes, and opportunities for joint innovation. A proactive relationship management approach turns suppliers into partners.
6. Ignoring risk and compliance
BPO often involves sharing sensitive data or relying on critical third parties. Overlooking risk management and compliance obligations can expose businesses to legal and reputational damage.
How to avoid it: Conduct thorough due diligence, embed compliance into contracts, and continuously monitor provider practice – responding quickly if expected standards start to drop.
BPO: how a procurement consultancy can help
Outsourcing can be a catalyst for transformation, but only if it’s managed strategically. At Accelerate, our procurement consultants bring decades of hands-on experience in designing, negotiating, and managing outsourcing partnerships across multiple industries.
We support clients through the full BPO lifecycle: from scoping and provider selection to contract negotiation, transition management, and governance. By combining market insight with practical delivery expertise, we help businesses avoid common outsourcing pitfalls, build resilient supplier relationships, and realise the full potential of their BPO strategy.