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How to Properly Evaluate Service Providers

by: Sarah Joson

Wednesday, July 25, 2012 | Outsourcing News |

Finding the Right Outsourcing Service Provider

As you are waiting for service providers to respond to your request for proposal (RFP), it would be best to draft a rating system that can help you choose the right service provider. The ball is still in your court and you are able to align the strengths of the provider to the immediate needs of your company.

An article by ISG Director Owen Wheatley posted at ISG-One.com features basic things business owners should take into account when drafting metrics for evaluation:

1. Get your investors involved. Since the chosen provider will either contribute towards reaching the company’s goals or hinder them, why not invite the investors since majority of the decision making will come from them? Apart from opening the doors for communication among the executives, project managers, and providers, it will help align the requirements of the company. Also, having all the executives there will make a more compelling scoring guide since they know more about the business than anyone else.

2. Classify providers. Coming up with different categories based on the objectives that you sent out along with the RFP will help show the strengths and weaknesses of each service provider. The one with the highest score across all categories will obviously be your best bet.

3. The scoring model should be flexible. There will be instances wherein you will be asked to make minor adjustments for the provider as there are several unexpected factors that can affect the position of each. Basically, you’d want to be as neutral as possible to avoid overlapping in each category. In the end, you will yield better results.  

4. Design a multi-purpose ranking model. Apart from having additional data after all of the providers have presented, you can now use the results as a tool which can help improve areas that are vital to the company. Moreover, it’s ideal to design the ranking model based on the company itself and modify so it can be used as a guide for future operations, or when problems arise as the operation progresses.

5. Don’t base your decisions solely on the results.  Keep in mind that the ranking model serves only as a guide for the entire decision-making process. It shouldn’t cloud the deeper debate regarding the risks, the impression that the providers leave you and the investors, and the possibilities that each provider offers.

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