In one of my recent experiences, I had been discussing on a new innovative project with a senior executive of an automobile company.
The project was about a customer survey to gauge the customer satisfaction index.
We had prepared an entire process flow for the project along with the CSF & KPI's.
There were lot of interactive meetings after which the entire process flow was finalized and we were requested to submit the commercial proposal for the same.
We were also handling the Helpdesk for the company hence it was really easy to get started with the project as out team was already aware of the customer profile and the scenarios.
One of the critical success factors of this activity was to get right response from the customers.
This requires high skills and good understanding of the process as well as the customers.
We were directed to submit the proposal.
After submitting the proposal considering the lesser customer acquisition cost we were very sure about getting the project.
A day latter we got a call from the Purchase manager stating the cost is very high and mentioned the target price which was 50% of what we actually quoted.
In our scheduled meeting, the Purchase manager said that this is just a telecalling activity and the cost for a telecaller was to be considered for this activity.
moreover, as per him it was a routine activity and need not required any QC and the reporting was also simple.
He also said that contacting the customers for a 5 minute survey was not difficult and there is another agency who are ready to do the task at the target prices.
I checked with the outsourcing department and they said that the purchase department are the people who take the final call and although they wanted us to do the activity they can't do much about it.
We tried our level best to give the best price considering the project importance however, we couldn't match the target price.
The project was awarded to the agency who were not involved in the conceptual stages of the task.
The activity rolled off with lot of initial challenges and just after a quarter was called off.
The senior management felt that the activity was not giving desired results and the project was termed as non feasible.
I am not sure whom to blame for this.
The decision of outsourcing is taken by the concerned department (sales, support) whereas the decision of whom to outsource i.
e.
, which company should the contract be awarded is taken by the purchase department.
The major criteria for Purchase department are the commercials proposed.
What about the critical parameters - capability, process flow, Quality checks, key performance indicators, critical success factors.
etc.
,?.
Such approach leads to a bad decision.
the contract is awarded based on commercials and when the department wants to get the task done, there is a huge gap between the expectations.
The gap widens and leads to an unsuccessful outsourcing project.
The Sourcing companies are not to be blamed for this neither are the department who have outsourced the activity.
The purchase department gets out saying that it is the problem between the outsourcing department and the sourcing company, whereas the main reason for this is the purchase department which gets off without being noticed.
This has recently become one of the main reasons for failed outsourcing contracts.
How can a purchase department decide on the contract award based on commercials.
the situation demands for a defined format for deciding on outsourcing contracts which should include both the purchase department as well as the outsourcing department.
For more details on such scenarios, please visit www.
callcenteroutsourcing.
in
The project was about a customer survey to gauge the customer satisfaction index.
We had prepared an entire process flow for the project along with the CSF & KPI's.
There were lot of interactive meetings after which the entire process flow was finalized and we were requested to submit the commercial proposal for the same.
We were also handling the Helpdesk for the company hence it was really easy to get started with the project as out team was already aware of the customer profile and the scenarios.
One of the critical success factors of this activity was to get right response from the customers.
This requires high skills and good understanding of the process as well as the customers.
We were directed to submit the proposal.
After submitting the proposal considering the lesser customer acquisition cost we were very sure about getting the project.
A day latter we got a call from the Purchase manager stating the cost is very high and mentioned the target price which was 50% of what we actually quoted.
In our scheduled meeting, the Purchase manager said that this is just a telecalling activity and the cost for a telecaller was to be considered for this activity.
moreover, as per him it was a routine activity and need not required any QC and the reporting was also simple.
He also said that contacting the customers for a 5 minute survey was not difficult and there is another agency who are ready to do the task at the target prices.
I checked with the outsourcing department and they said that the purchase department are the people who take the final call and although they wanted us to do the activity they can't do much about it.
We tried our level best to give the best price considering the project importance however, we couldn't match the target price.
The project was awarded to the agency who were not involved in the conceptual stages of the task.
The activity rolled off with lot of initial challenges and just after a quarter was called off.
The senior management felt that the activity was not giving desired results and the project was termed as non feasible.
I am not sure whom to blame for this.
The decision of outsourcing is taken by the concerned department (sales, support) whereas the decision of whom to outsource i.
e.
, which company should the contract be awarded is taken by the purchase department.
The major criteria for Purchase department are the commercials proposed.
What about the critical parameters - capability, process flow, Quality checks, key performance indicators, critical success factors.
etc.
,?.
Such approach leads to a bad decision.
the contract is awarded based on commercials and when the department wants to get the task done, there is a huge gap between the expectations.
The gap widens and leads to an unsuccessful outsourcing project.
The Sourcing companies are not to be blamed for this neither are the department who have outsourced the activity.
The purchase department gets out saying that it is the problem between the outsourcing department and the sourcing company, whereas the main reason for this is the purchase department which gets off without being noticed.
This has recently become one of the main reasons for failed outsourcing contracts.
How can a purchase department decide on the contract award based on commercials.
the situation demands for a defined format for deciding on outsourcing contracts which should include both the purchase department as well as the outsourcing department.
For more details on such scenarios, please visit www.
callcenteroutsourcing.
in
SHARE
