Outsourcing Firm Embraces Business Process Outsourcing for Sales Compensation Management

Situation

Kforce is a professional staffing firm that has been matching job seekers and employers since 1962. Today, Kforce provides innovative staffing solutions through more than 60 offices in the US and one in the Philippines. Separate business channels focus on fields such as IT, healthcare, finance/accounting, and government, with specialist salespeople for each channel.

In 2010, Kforce engaged Optymyze to help implement their vision for a dynamic, role-based sales compensation management system to replace a simplistic spreadsheet-based regimen. Kforce expressed its desire to limit the scope of the engagement to implementing a new system and set a goal of independently being able to make system changes shortly after completion of the implementation.

Challenges

The company faced two big challenges in achieving their goal of managing system changes using internal resources: lack of available resources and lack of specialized expertise of those resources. Despite the goal, the analysts that could do change management work were asked to focus on other priorities, including the analysis of the various types of data that were now available in the system.

Because of these other priorities, the internal staff did not have the time to make system changes such as data inputs, compensation plans, and reports. In addition, the company had a difficult time hiring operational resources with sufficient experience to replace the Optymyze experts who were providing the initial change management support.

As a result, Kforce faced the prospect of not being able to extract the expected value out of the new system, and the company was concerned that the system would become out of date and misaligned with the business strategy.

Solution

Optymyze solved these challenges in a way that Kforce initially rejected, but came to appreciate. After comparing the cost of a system that would increasingly be misaligned with their business strategy due to organizational constraints against the cost of outsourcing this work to Optymyze, Kforce determined that the most effective—and cost-effective—solution for them was to leverage Optymyze’s expertise in managing changes to the sales compensation system.

At that point, Kforce and Optymyze worked closely together to identify Kforce’s specific needs and design a business process management solution that would provide the company with an ongoing return on their investment.

Outcomes

After three years of lacking the needed internal resources and experiencing the associated constraints, Optymyze’s ‘as a service’ model enabled Kforce to take their investment in a sales compensation management system to another level.

By leveraging Optymyze’s sales compensation management expertise, Kforce controlled its sales operations expense without the overhead and risk of additional internal resources. Kforce also freed up resources to work on other, more urgent priorities, leaving Optymyze experts to focus on maximizing sales operations efficiency and leveraging the system to drive sales force performance.

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A staffing firm knows better than most that sometimes it is simply smarter to outsource than to try to staff a highly specialized position.

 

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