Four Steps to Outsourcing Success
Experts have stated that poor outsourcing implementations are often the result of a “Let’s do something quickly,” mentality. At TFane we believe in an incremental approach to outsourcing success. Our four step approach provides your organization with time to adjust to the new operational methods and builds success one step at a time.
Step One – Evaluation
In the evaluation phase, a TFane account manager works hand in hand with you to qualify the acceptability of processes for outsourcing. Processes are assigned to categories of probable, possible, or unlikely. The criteria for this evaluation include:
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Labor intensiveness
Labor intensiveness•Strategic nature of the process
Strategic nature of the process•Process structure
Process structure•Process repetition
Process repetition•Process volume
Process volume•Confidentiality
Confidentiality•Standardization
Standardization•Centralization
Centralization•Low risk to business
Low risk to business•Ease of measuring output
Ease of measuring outputStep Two – The Pilot Project
In the pilot project, the process is documented and then outsourced on a trial basis. The pilot project provides a safe way to ensure that outsourcing fully meets your expectations.
Step Three – Limited Production
With the success of the pilot project, we recommend moving into a limited production capacity. This gives you time to continue to evaluate the acceptability of the outsourcing solution in an actual production situation. And it gives you time to re-deploy your resources.
Step Four – Full Production
Finally, with success in the limited production phase, and with a strong client/provider relationship, we recommend moving to full production.
Outsourcing Complexity
In addition to the incremental approach to outsourcing referenced above, we also recommend a gradual approach to the complexity of the processes outsourced. The various levels of complexity are described below. We believe that a key to success is beginning with lower tier activities before tackling processes of higher sophistication.
Level 1 Activities
Well documented processes that require little day to day management interaction fall into this category. These processes are generally heavy in transactions. In back-office processing, these tasks include remote medical coding, charge entry, medical transcription, and cash posting.
Level 2 Activities
These processes include more value added work. Example, accounts receivable management (payer).
Level 3 Activities
These processes require higher level skill sets, more sophisticated training, and performance support systems for the representatives. Example, billing and self-pay account collection, and ASP Practice Management System.
