- c. RFP & RFQ
Now that the business requirements have been defined and you also have the short listed vendors that you want to evaluate, this is the time to write an RFP (request for proposal) or RFQ (request for quotation). Whichever format that you decide to choose, just make sure that your RFQ or RFP should have the following sections:
- Submission information
- Introduction & executive summary
- The business background and overview
- Well detailed specifications
- Assumptions and constraints
- Terms and conditions
vii. Selection criteria
- d. Proposal Evaluation & Outsourcing Vendor Selection
The major goal of this part is to effectively minimize human emotion and political influence so as to arrive at a decision that is certainly in the very best interest of the company. Make sure that you are very thorough in your investigation, ensure that you also seek input from all the stakeholders and utilize the following method in order to direct the team to a unified outsourcing vendor selection process:
- Initial review of all the vendor proposals
- Record company requirements and vendor requirements
- Allocate importance value for every requirement
- Calculate an overall performance score
- Finally, pick a winning vendor
- e. Agreement Negotiation Strategies
The last stage in the outsourcing vendor selection process is developing an agreement negotiation strategy. You need to understand that you want to partner with your outsourcing vendor and not take ‘em to the cleaners. Ensure that you review your goal for your agreement contract negotiation and effectively plan for the negotiations, make sure that you cover the following items:
- Make sure you list rank your main concerns (or priorities) along with options
- Make sure that you know the clear difference between what you need and what you want
- Make sure that you know your bottom line so that you will know exactly when to walk away.
- Clearly define any benchmarks or time constraints
- Make sure you assess prospective risks and liabilities
- Dispute resolution, confidentiality, changes in requirements, non-compete.
vii. You should do the same for your outsourcing vendor
When you choose the right vendor to handle all your outsourcing needs, this will surely give you some peace of mind knowing that your outsourced tasks are in good capable hands. Never allow your emotions get the better of you, make sure you stick to what is best for your business.
Daven Michaels Author of the book Outsource This!