“But we have a service level agreement for the billing runs. The vendor has hit 99.8% accuracy for three quarters straight.”
“Great. So why are there two hundred people in the lobby of our workflow system screaming for a human to look at their accounts?”
“That’s different. Those are disputes. Modifications. In-life changes. That’s judgment-based work. We keep that in-house because you can’t really outsource ‘it depends’.”
It is . I started a diet at , and I can already feel my blood sugar performing a slow, dramatic swan dive into a pool of existential dread. I am currently staring at a cold cup of coffee and wondering if a spoonful of sugar constitutes a “relapse” or merely a “strategic adjustment.”
This is how most people approach their back-office operations: they call a massive failure a “strategic adjustment” because they’ve outsourced the part of the business that was actually easy to solve, while clutching the broken parts to their chest like a prized heirloom.
A Tale of Two Operations
The scene is almost always the same. You walk into the operations center of a mid-sized lender, and you see two very different worlds. On one side, there’s a sleek monthly report from a Business Process Outsourcing (BPO) firm. It’s full of green checkmarks and “transactions processed”