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BPO Vendor Selection: Polytechnic University of The Philippines Taguig Branch
BPO Vendor Selection: Polytechnic University of The Philippines Taguig Branch
Submitted by:
Calag, Lea
Alcala, Mac Wilson
Zervoulakos, Eunice
Gempasao, Gea Rose
Llona, Dharlene Mae
Submitted to:
Ms. MT Sevilla
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
Introduction
A vendor is a party in the supply chain that makes goods and services available
to companies or consumers. The term "vendor" is typically used to describe the entity that
is paid for goods that are provided, rather than the manufacturer of the goods itself.
However, it is possible for a vendor to operate as both a supplier (or seller) of goods and
a manufacturer.
BPO vendors can be classified into three distinct types depending on the
history or origin of the company, expertise etc.
These are big companies that already have a good track record of services in traditional
IT areas. They have started offering BPO services to leverage their expertise and the
client relationships that are already in existence. In India, large IT services companies
like Infosys, WIPRO, Tata Consultancy, Satyam etc. have started offering BPO services
either directly or through their subsidiaries.
2.Consulting firms:
Consulting firms have the distinct advantage of working with several companies and are
hence exposed to the best practices followed worldwide. Their domain knowledge gives
them tremendous competitive advantage as also the CEO level relationships that they
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
have built over the years. Hewitt, Accenture and Ernst & Young are some of the
consulting firms in this category.
These companies have been set up exclusively for undertaking BPO contracts. Such
companies have mushroomed in the past couple of years, especially relatively lower
and Transcation BPO providers and Niche providers. This growth is especially in the
areas of transcription, call centres, e-accounts etc.
On the other hand, finding the right BPO vendor is a critical step in an organization’s
outsourcing initiative and one of the most difficult to manage. The promise of BPO is always
tempered by the perceived risks associated with handing responsibility for an internal business
process—no matter how noncore or mundane it may be—to another firm. More than one
manager has balked at launching a BPO project because of the occasional stories of vendor failure
that appear in the media. Many would prefer to play it safe and stay with the status quo than to
advance toward what will (or might) be.
issues. Soft issues include cultural and organizational values, mission and vision statements, and
organizational history. Hard issues are more quantitative and are usually associated with
performance and productivity. In addition to this distinction, some firms also use a weight system
to distribute the relative importance of each issue over the decision process.
Characteristics:
Used when you’re looking for information
Ask general questions
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
Capabilities Interview
These are specific, job-related questions are designed to assess a vendor's suitability for
the position that are asked personally.
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
There are several general guidelines for developing an effective RFP. One of the most
important is to be clear about the business process that is slated for outsourcing and the scope
of work that will be required from the vendor. At the same time, RFPs should not be so long and
burdensome that some qualified vendors will elect not to respond. Several items that should be
included in any RFP are as follows:
- Administrative
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
This section includes information about the BPO buyer’s company, business priorities, purpose
of the RFP, deadlines for response, required format, assessment criteria, and contact
information.
- General requirements
This section details expectations regarding the services to be provided, reporting and information
sharing, customer service, claims resolution, contract implementation, training, and benchmarks
for fees.
- Pricing requirements
This section outlines the expected pricing approach, including goals for net rates and volume
discounts.
- Contractual/legal
This section provides details about expected contract terms and conditions, warranties,
remedies, and any disclaimers.
with the VST in a formal presentation should be reserved for the short-list candidates only.
a. Telephone interview
Within the teleconference, the BPO vendor should explain in detail its submitted proposal,
including addressing the following issues:
- approach
- company Background
- experience in the process area
- strengths
- availability
- certification
- suggested solution
After listing out those who did meet the qualification, inform those who pass the
shortlisting that they are one step ahead to be your chosen vendor.
Give your vendor a limited time to prepare for the presentation to see how well
they are prepared and if they are even preparing to be your vendor. In the presentation,
what they can offer or the bid should be presented clearly.
• Express interest regarding the vendor’s pricing model
As a courtesy, express your interest for what they are offering for you.
• Reiterate what the organization is looking for in a BPO vendor
Keep on clarifying and reminding these vendors about what your organization is
looking for in a BPO vendor.
• Let the vendor know that there will be a final telephone conference to clarify the bid
submitted
Same with the recruitment for employment, after interview, another interview
waits for you. Don’t forget to tell the presenter that there will be a final telephone
interview for clarifying or negotiating about the bid that was submitted. This final
interview will take place after reviewing all the presentation of the shortlisted vendor.
• Ask the vendor to submit its best bid no later than the deadline you established
Being on time is one factor that should be look after for a vendor. Being on time
also means being a priority.
See who will be the one to present the prepared presentation. I personally think
that having or putting someone respectable from the vendor’s business as a presenter
means this relationship building is important and one of the priorities of the vendor.
Check how the presentation is presented and developed, this can help the team
to see how serious the vendor to be your chosen vendor.
Looking forward for the future means they are looking forward for the success of
the relationship they are building. Also, having contingency plan means they really study
your organization and they are looking forward for what they can give you, and, also, they
are trying to predict problems that they can address immediately.
• What performance data does the vendor provide?
As discussed earlier, history is needed to forecast what they can give you.
• Who are the vendor’s leading clients?
• How well does the vendor team listen to the buyer team?
With this part, the members are looking how well the vendor matches the
qualifications, objectives, and everything your organization is looking for.
If that occurs, it is in the interests of the organization to abandon the BPO project.
As stated, one danger associated with initiating a BPO project is the escalation of commitment
phenomenon. For many executives and managers, the decision to abandon a project after such
a large investment of personal time and other resources is exceedingly difficult. However, sound
business decision making sometimes requires firms to cut their losses and move on. In this case,
if none of the vendors can meet the organization’s specifications after this systematic selection
process has been followed, it would be unwise to attempt to either gerrymander the
specifications or allow the vendor to alter its bid to try to force a fit.
Pre-contract Stage
This pre-contract stage should not be less than 90 days—long enough to allow
anything unexpected to arise. Remember, the BPO buyer and vendor are attempting to develop
a partnership, and there are going to be problems that must be worked through.
Republic of the Philippines
Polytechnic University of the
Philippines
TAGUIG BRANCH
Steps
1. Allow employees to air their concerns and ask questions
Allowing employees to air their concerns and ask questions may help reduce the feeling
among employees that they are being cast aside. Conflicts in style and personalities may
emerge in these meetings that could affect the vendor’s performance.
2. Address issues of terms and conditions of employment
The firms should also address issues of terms and conditions of employment, including
appropriate compensation if vendor employment is not available or not required. If any
additional training will be required as a result of joining the new organization, it should
now be brought to light.
3. Discuss the objectives of the new work processes and what the organizations want to
achieve
Leaders of the BPO implementation from both parties should discuss the objectives of the
new work processes and what the organizations want to achieve. All members of the new
inter-organizational work team should understand their personal contribution to the
team’s success. Many problems can be avoided by communicating regularly and
vigorously with employees at this early stage of the BPO implementation.9 Up to this
point the rumor mill may have been going full speed and people had no idea who or what
to believe.
4. Make certain that the contract will stand up to the rigors and complexities of the actual
operation
A trial period is ideal for making adjustments before the contract becomes final and for
judging the likelihood of the partnership breaking down.