Software to the Rescue

Steve Hamm

I got a ping over the weekend from Arijit Sengupta, the CEO of BeyondCore, a Foster City, CA, a startup with software that automatically measures the error rates in business process and identifies their root causes. The company's Web site says the technology is based on the Toyota Production System and Six Sigma, which is handy since a lot of BPO shops use those methodologies to improve quality.

Sengupta wrote to notify me that he had created a Web site on Ning to aggregate info about outsourcing, and he had linked to some of my recent posts.

He wrote: "I have been looking for a single site where I can get a quick update on outsourcing related news and opinion. I am trying to make this new site fulfill that role."

When I started Bangalore Tigers last fall, my original thought was to turn it into just such a catch-all location but quickly found that I wasn't willing to keep on top of things and didn't have the technical know-how to get it going and put it on partial auto pilot--which Sengupta apparently does.

When I prowled around on BeyondCore's Web sites I was impressed with the company's intellectual underpinnings. Clearly, Sengupta and his colleagues are determined to be thought leaders in the still-immature world of BPO and offshoring. They have created a new metric for the industry, Total Cost of Errors, and spell out its methodologies and concepts on their Total Cost of Errors Web site.

Here's a case study off the BeyondCore Web site that shows what their software can do for clients:

(Sure, it's marketing, but I'm convinced that the more automation is applied to the routine aspects of services, the better)

Offshore 100 BPO Vendor
serving a US Insurance firm

17% of claims had critical errors and over 40% of claims had at least one error
BeyondCore evaluated an Offshore 100 BPO vendor serving an US insurance firm. We found that over 17% of claims had critical errors (as specified by customer: errors in fields such as social security number, claim amount, diagnosis code, etc.) and over 40% of claims had at least one data-entry error. Such a high level of errors could create significant risks for the customer, including severe regulatory compliance problems. However, the vendor had not violated their Service Level Agreement (SLA) which stated that more than 99.5% of fields (not claims / documents) had to be accurate. The SLA was clearly flawed.

This customer wishes to remain anonymous and was unwilling to share their final results. However, BeyondCore can help customers evaluate the appropriate quality SLAs for BPO vendors and provide an automated solution to monitor the quality of the vendors’ work. Our solution significantly reduces overall Outsourcing Risk and helps our customers safely realize the benefits of outsourcing.

Before it's here, it's on the Bloomberg Terminal.