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10 Ways to Close Outsourcing Deals

by: Sarah Joson

Wednesday, November 12, 2014 |

As economies continue to recover from recession, cost remains as one of the key drivers of strategies amongst organizations, which is why some of them opt to outsource processes to providers which are equipped with the skills and tools that they need.  

Technology paved the way for innovative solutions and economical services delivery models and these factors continue to shape not only global industries, but for organizations that are hoping to close deals as well. In fact, the long-standing metrics for deals such as annual run rate, length, and deal size have changed.

For service providers which are still at the proposal stage, they would need to design a value-based presentation to attract and push their potential clients to sign with them. A post at BusinessReviewEurope.eu lists down 10 things that can help reinforce your outsourcing proposals:

1) Be mindful of the circumstances.
One way to show potential clients that you have done your homework is to explain to them how you can add value to their existing operation, outsourced or not. This is your way to ensure them that you are equipped with the tools and capabilities that prevent problems during the integration period.

2) Find out the client’s soft spot.
The outsourcing industry has become so saturated that providers are found almost everywhere. Often times, these providers present a common and played out premise which is to deliver affordable services. To outmaneuver competitors, you can fish for key objectives by asking the right questions. Move beyond the typical template and leverage on the data that you have collected. It could be about the impact on the end user, increase productivity, and how lower costs will be achieved.

3) Show them what you’ve got.
Present your track record so that they will be informed of what you can do and how much you know about the industry. Then stick to the pitch brief and incorporate your solutions as you explain that you have the right people with relevant experience.

4) If you are eyeing renewal, show your achievements.
If you are an incumbent bidder, you should be able to prove that renewing a contract with you is a valid choice. Explain to them how you were able to reach the goals that were set after the contract was awarded to you.

Before you even think of running for a renewal, you might want to check on your previous reports and see how accurate they are. Also, remember the conversations and meetings you had with them during the reports so you can remind them of what you were able to accomplish before the contract ends.

5) Always have a different perspective on things.
Innovation is necessary in proposals. This is your way to tell the client how much you are willing to think outside the box to optimize their processes. Your strategy should be able to display your plans to integrate innovative approaches, how it will be measured and how you will monitor its impact to the business objectives of the client.

6) Highlight the importance of teamwork.
Make them realize that you are a company that strongly believes that collaboration is fundamental to the success of the contract. Make them see that you need them as much as they need you.

7) Refine the contract.
Inform clients that changes are inevitable, but you are ready to take them head-on – not just to find solutions to the changes, but also to maximize the operation’s potential. Tell them how you can monitor the changes, and create an example that will simulate the possible changes.

8) Weigh in on the goals.
Clients expect that you will present to them the usual, prefabricated dialogue about your outsourcing products. Be a step ahead of everybody else and align your knowledge about your service, technology, and SLA (service level agreements) to what they are trying to achieve. Highlight how you can help them achieve their targets so the conversation will move from the operational level to the strategic level.

9) Start from the top, and move your way down.
As someone who is totally foreign to an organization, you have to speak the language of the important people across the organization. Start with the senior stakeholders and decision makers so they will be able to see how confident you are and how you will handle the operation from day one.

10) Emphasize that you bring value on top of cost reduction.

Establish the fact that you are a provider that seeks to add value to their organization – at an affordable price. Cost used to be the main driver for clients to outsource, but if you can show how you can improve their quality of work, that puts you ahead of the competition.

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