Alsbridge, an advisory firm in the US and UK, put together an interesting roundtable with representatives from 10 BPO service providers and asked them, What’s wrong with the procurement process?
This is that period of the outsourcing work in which “the solution is determined, the transition plan is constructed, the commercial model is shaped and the relationship is built.” This phase can greatly influence the outcome of the whole endeavor.
The answers tended to focus on several key areas:
- An arms-length relationship where trust isn’t assumed.
- False promises on the part of suppliers.
- Unrealistic and naive demands by buyers.
- Too much time taken by clients to make a decision.
- Intervention by advisors holding up the process and squashing innovative approaches.
- An attitude that cost drives everything.
Next, participants were asked for recommendations to address these obstacles. Improvements all around: improvements in decision making and communication, the solution design process, the contracting process, how the commercial aspects of the relationship are defined, and how a common industry vocabulary and tools can be built.
For details, read the report here.
