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Why Outsourcing Providers Lose in the Bidding Process

by: Sarah Joson

Tuesday, July 31, 2012 | Outsourcing News |

Outsourcing service providers have their own strengths and weaknesses. Apart from pitching their company’s achievements to nab outsourcing contracts, executives of outsourcing providers need to go head-to-head with other competitors in several factors such as outsourcing pricing, quality of work (can be presented using testimonials from clients), and level of expertise. 

There must be something that makes clients select one service provider over the other, one marginal thing that some providers tend to overlook that makes all the difference.

Common mistakes of outsourcing service providers during proposals

A post at info.ISG-One.com identifies five common mistakes that service providers do during proposals.

1) Inadequate background check. Failing to fully understand the needs of the client can lead to an opportunity lost for the provider. More often than not, providers immediately jump to the conclusion that clients only want to sell and earn money immediately, which is why they prepare strategies that are not for the long-term benefit of the client.

2) Forgetting the vital players of your team
. Sending the wrong players to pitch for your end can jeopardize your company’s chances to win the deal. The sales team should also coordinate with the servicing team to help produce a credible presentation.

3) Doing multiple pitches and failing to focus on each. Some providers are often too eager to win multiple deals to the point that they haphazardly work on each presentation. They end up with poor demonstrations that put off some clients. Providers who succeed in winning accounts are usually the ones who select the most appropriate clients and prepare meaningful pitches that help them land the deal.

4) Proposals that are inappropriate to the client’s requirements. Most providers use a template for all of their presentations. The detrimental fact about this is most of the client’s requirements or questions aren’t covered or are left unanswered. Naturally, clients will select the provider who did their homework and was able to answer questions effectively.

5) Disorganized team and presentation
. Every provider should remember that everything starts internally, and whatever’s happening among the team members will reflect during the actual presentation. Having a properly mapped-out strategy will help reinforce your chances of winning the deal.

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