Selecting an ideal Business Process Outsourcing vendor is one of the most important yet difficult decisions a business can make. It actually depends on a number of factors such as quality of work, value for money, timeliness, and reliability. Below is a step-by-step process that companies should follow when hiring a BPO vendor:
Define requirements and review potential vendors
Start by defining your primary stakeholders and engage them from the beginning. Your company must also figure out the key objectives, risks, and scope for BPO. This step should take the longest and include a full review of your business processes. More importantly, you should start to source potential vendors and develop a scorecard to determine the most important criteria.
Put together a request for proposal (RFP)
Determine the most crucial elements of a BPO provider then send out a request for proposal (RFP). This request should include an introduction, summary of the requirements, brief background of the business, specifications, and the necessary terms and conditions. At this stage, define what service management model your company will use.
Choose the right vendor
Evaluate the proposals. Start analyzing the change that will result from contracting with a third-party vendor. Each of the requirements should be weighed according to their importance and their respective price quotes. After doing so, you can now select the best proposal that suits your business requirements and comes at a reasonable cost.
Negotiate the contract
This is the most important step in the whole process. Both parties must reach an agreement not only on the service parameters but also on the contract schedule. It’s critical to ensure buy-in and agreement by all stakeholders. The contract negotiation strategy needs to be planned in such a way that the priorities of the required services are properly sorted out to prevent future complications.
Transition the work and processes to your chosen vendor
This is the actual “go” step. Develop a plan and put it in place for transitioning to the new business model. Ensure that your company or organization has open communication internally and with the service provider.
Manage your relationship
Verify proper governance during the life of the contract with your service provider. Performance monitoring is key for ensuring that your company reaps the expected benefits of outsourcing. Expect a collaborative relationship and plan to renegotiate your contract and its scope at the end of its term.
Overall, the company should choose a Business Process Outsourcing vendor carefully and conscientiously. The relationship should be defined formally and managed regularly. Remember that a good outsourcing company values the work of every employee and helps your organization boost sales without consuming too much money.