Successful outsourcing begins with successful vendor selection process. When your company is considering Philippines offshore outsourcing or vendors from other offshore outsourcing destinations, thorough selection process should be followed in order to achieve success on the long run.

Most times, selecting a vendor is usually a daunting task, even complicated at times. Unless you follow a systematic approach, you may end up choosing the wrong vendor for your business process outsourcing.

In this post, you will discover a systematic approach to selecting the right vendor, a step-by-step vendor selection guide;

Step 1: Business Requirements Analysis

If possible, set up a committee that would take up the business requirement analysis task. This would involve defining and putting down in writing, the business function or process that you intend to outsource, including what would be required. Also, spell out your expectations from the project – this is what you intend to achieve by using an offshore company to handle such function. You also need to be proactive in defining what a vendor may likely require for the accomplishment of the task, this would help you formulate questions for interviews. It will also help you to negotiate favorably. Remember, the entire analysis should be drawn in paper.

Step 2: Search for a Vendor

The second step in selecting Philippines offshore outsourcing or vendors from another location is to embark on real search for the vendor. In summary, vendor search

would follow the following procedures;

• Write a list of potential vendors, focusing on the ones that have experience in the business aspect you intend to outsource.
• Do a deeper research on the listed vendors and narrow down your list based on the outcome of your research.
• Contact the vendors you have in your new list to ask for more information. The request for information should be formally written, it is called Request for Information (RFI).

• Evaluate responses from the interviewed vendors critically and narrow-down your list again.

Step 3: Proposal Request and/or Quotation Request – RFQ and/or RFP

Here’s a summary of the sections that would likely be in the proposal or quotation;

• Details of submission
• The background and overview of business
• Introduction & Executive Summary
• Criteria for selection
• Detailed specifications
• Constraints and Assumptions
• Terms and Conditions

Step 4: Evaluation of Proposal and Vendor Selection

The following steps will be involved;

• Groundwork (in form of extensive review) on all proposals submitted
• Analyzing business requirements and vendor requirements side by side
• Evaluate each vendor’s requirement in the light of the business requirements
• Each requirement should be assigned a performance value
• Draw a total score for anticipated performance
• Brood over the entire process again before doing the final selection.

This guide is only a summary of the steps you need to take in hiring Philippines offshore outsourcing vendor or any outsource vendor from other offshore destinations.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com