Selecting A BPO Company

Making the decision to outsource is easy when you compare it to the task of actually hiring a BPO company. With so many providers jockeying for clients, it’s easy to just “pick one” and hope it turns out okay. Well that method is about as reliable as throwing wet paper towels up on the ceiling and taking bets on which ones will fall and which ones won’t.

Your business is too important to leave outsourcing to chance. Especially if you are not familiar with outsourcing pros and cons. So to increase your chances of success, you must exercise due diligence and prepare yourself for a long involved process.

Choose From A List Of Several Potential Providers

Compile your list from recommendations from colleagues within your industry, word of mouth or from other vendors you may have a relationship with. When a company is considering outsourcing, news travels fast. Don’t be surprised if a BPO company contacts you first pitching their services.

In any event, you will be looking for vendors that have the specific capabilities, resources and experience to provide the services you want to outsource. Do your own research. Get as much information about the vendors on your list as possible. Look for surveys that might reveal information about the vendors abilities and customer service. Another great source is to check industry publications. You may find articles written about a vendor. Find others who outsource and pick their brains about their vendor.

Other ways to check out potential vendors is to go to their website. Also check to see if the vendor is involved in any litigation. Request annual reports to check the financial health of the vendor. Check the websites of the vendor’s clients. You may find some interesting information left in comments. Finally when you’re ready, make a request for information or RFI.

The Request For Information Can Help In The Selection Process

Either in writing or conducted by phone, this is the time to ask questions. Some questions you might ask include:

  • What kind of reputation do you have in the industry?
  • How do you deal with cultural differences?
  • Are you financially secure? (Request recent financial statements)
  •  What’s your market share?
  • What makes you a better choice than your competitors?
  • Do you have experience in the area I am outsourcing? (Ask for references)

Request For Proposal (RFP)

The next part of the process when choosing a BPO company involves asking vendors you’ve chosen to submit a proposal. It’s better to take requests from several vendors. Increased competition means competitive pricing. You can also use this fact to leverage for increased services. Plus it’s just smarter not to put all of your eggs in one basket so early in the process by only taking a proposal from one vendor.

The proposals from each vendor will include price, objectives, time tables, vendor background information, services to be provided, location, performance expectations, management procedures, project staffing, contract terms and additional services. This is not a complete list, and is meant to give you an idea of what to expect.

Evaluate The Proposals

This is the part of the process where you sit and evaluate each BPO company. You must determine based on your goals, financial budget and other requirements which company you wish to hire. To help in this process you need to create your own list of criteria that must be met in order for a BPO company to even be considered. Every organization’s criteria will differ from one to the next. However here are a few ideas to get you started:

  • The vendor’s ability to deliver services.
  • How quickly can the vendor adapt to new technology if needed.
  • Vendor reputation within the industry
  • Can the vendor meet and maintain a specific level of quality?
  • Is the pricing offered by the vendor within your company’s range?
  • Financial stability of the vendor
  • Terms And Conditions
  • Contract flexibility

It may useful to create a scoring system of some sort to keep track of each vendor. Once you’ve completed your analysis of each proposal. Add up their scores. Depending on how many vendors you’re evaluating will determine how many to consider as the top vendors. For the sake of example, choose the top three and weigh the options of each. Having other decision makers within your organization to help in the process can be beneficial, as they may see something you’ve missed.

Next notify the vendor of your choice and prepare for the long negotiation and contract phase. It may seem like a long tedious process. But in the end, you’ll be glad you took the detailed steps we’ve described. We’ve provide the basics to you pointed in the right direction.

The sooner you begin the process, the sooner you’ll find the right BPO company for you and your business.