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How to Avoid Switching Service Providers

by: Sarah Joson

Monday, October 8, 2012 | Outsourcing News |

There are several reasons many business process outsourcing (BPO) clients are thinking of changing their service providers. In a post at BPOOutcomes.com, Dan Berthiaume shares what the respondents have to say regarding the issue.

According to the poll results, most of the respondents (93%) have indicated that they have already changed their providers or are thinking of doing so. To break it down even further, 57% said they wanted to but find it hard to even begin the process. Twenty-one percent stated they were able to do so but it was really challenging; 15% said they have switched outsourcing service providers and it was easy, while only 7% said they have never thought of switching service providers.


Ways to avoid switching outsourcing service providers

If a BPO provider fails to meet the demands of a buyer or simply can’t satiate the client even with ample renegotiation, vendor management and governance, clients are usually disposed to switching to a new one. But it doesn’t always have to end that way because right from the beginning, clients can already nip the problem in the bud. Here are several ways to do it:

Perform proper due diligence.
Apart from sending requests for proposal (RFPs) to numerous outsourcing providers, clients should also consider other players in the field. Use benchmarks and metrics that comply with the industry and the company, and of course, look at the reputation and portfolios to ensure that they have a pristine track record that can fit the company’s goals.

Contracts should be given equal opportunities.

Providers will not appreciate a buyer who low balls them during the negotiating period. Clients, on the other hand, do not like to feel taken advantage of. Clients should look into the details on why a certain provision in the contract costs more or less. For instance, an upcoming process will cost four times more than the other services - this could be an additional expense for the entire operation as they are anticipating for more innovations that could help the client. All in all, what clients want to avoid is a pause in the operation and renegotiation of the contract which will cause even more delays.

Discuss proper management and delegation of tasks.

Having a transparent partnership during the early stages of the operation can help provide a favorable path for both parties. They should be able to air their concerns respectfully, while considering the effects of the changes to one another. Both should also be flexible enough and be able to evolve depending on the current environment of the operation.

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