Run an outsourcing pilot before you commit

Key takeaways

An outsourcing pilot tests one process with a provider for 8 to 12 weeks against a baseline and agreed success measures, before any larger commitment. Choose a process that matters but is not your most sensitive, set two or three measures, review weekly, and decide at the end to expand, adjust or stop, using the numbers.

• 8 weeks is the minimum to get past the learning curve.
• Set 2 or 3 success measures and a 2-week baseline first.
• Review weekly; decide at the end using the numbers.
• Use short notice terms so stopping is simple.

What is an outsourcing pilot?

An outsourcing pilot is a time-limited trial of outsourcing one process, with a clear start and end, success measures agreed in advance, and a decision at the end. It lets you test the provider, the process and your own readiness with limited risk, and gives you real numbers for any wider decision.

• When should a UK business consider outsourcing?

Which process should you pilot?

Pick a process that scores 4 or more on the GBL Outsourcing Trigger Scorecard, is stable and documented, and has enough volume to measure. It should matter enough that success is meaningful, but not be so sensitive that early mistakes would cause serious harm. Inbox handling, call answering and data entry are common pilot choices.

• The outsourcing trigger scorecard
• What should you outsource first?

How do you set success measures?

Choose two or three measures that reflect why you are outsourcing, record a baseline for at least two weeks before the pilot, and set targets for the end. Include one measure of speed or volume, one of quality, and one of cost or time returned.

• Speed: time to first reply, or items completed per day.
• Quality: accuracy on a weekly sample, or complaints.
• Cost or time: cost per task, or internal hours returned.

• BPO SLA examples you can adapt

How should the pilot run week by week?

Expect a learning curve. The first two weeks are setup and shadowing, the next few build towards target, and the last weeks show steady-state performance. Judge the pilot on the final weeks, not the first.

• Weeks 1 to 2: setup, access, shadowing and supervised work.
• Weeks 3 to 6: live work, daily then weekly reviews, process fixes.
• Weeks 7 to 12: steady running against targets.
• Final week: review results and decide.

• A BPO transition plan for the first 90 days

What should the pilot agreement include?

A clear scope, the success measures, reporting, short notice terms, data protection arrangements and what happens at the end. Make sure you own the documentation created during the pilot. A processor contract is required from day one if personal data is involved, even for a short pilot.

• BPO contract terms to check before signing
• Data processing agreements for outsourcing

How do you decide at the end?

Compare final-weeks results with the baseline and targets. If targets are met, expand: make the arrangement ongoing or add a second process. If results are close, adjust the process or scope and extend. If results are poor and the cause is the provider rather than the process, stop and try another route.

• Work out the ROI of outsourcing

What are common pilot mistakes?

Starting without a baseline, judging on the first fortnight, choosing a process too small to measure, and giving the provider no written process. Another is not assigning an internal owner, which leaves questions unanswered and makes the provider look slow.

• Outsourcing decision mistakes UK SMEs make

Who should own the pilot internally?

One named person with the authority to answer questions and make small process decisions, and the time to do it: typically two to four hours a week during the pilot. Without an owner, questions wait, the provider guesses, and the pilot measures your responsiveness rather than theirs. The owner also writes the end-of-pilot recommendation.

• Answers the team's questions within an agreed time.
• Runs the weekly review against the measures.
• Updates the written process as issues come up.
• Recommends expand, adjust or stop at the end.

• A simple BPO governance model

What does this look like in practice?

A pattern we see in UK logistics and e-commerce firms: a 12-week pilot of delivery query handling with targets for first reply time, accuracy and internal hours returned. By week 8 replies are within the hour and the in-house team has its afternoons back, and the business extends the arrangement and adds order status updates.

• See client work
• BPO Solutions for UK businesses

Pilot checklist

Use this to set up a pilot.

• Pick one stable process scoring 4 or more.
• Record a two-week baseline.
• Set two or three success measures and targets.
• Agree scope, reporting and short notice terms.
• Name an internal owner with time for weekly reviews.
• Decide at the end: expand, adjust or stop.

Next step

Tell us which process you want to test. We will help you design a pilot with clear measures and a simple decision at the end.