Comments on: Vendor Evaluations – Understand an Outsourcing Vendor’s Operations http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/ Best Practices in Outsourcing and Vendor Management Thu, 13 May 2010 16:01:31 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: tony http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/comment-page-1/#comment-1125 tony Wed, 18 Nov 2009 14:07:08 +0000 http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/#comment-1125 Rosemary, I completely agree with deep diving into vendor operations! When I evaluate a vendor's quality team, I begin with a generic capabilities presentation, which must be delivered by the actual site's lead quality resource (not the sales person and not the vendor's "global EVP of quality" - I want to meet the person who actually leads the team). Then we move into site's quality area to see the work in action. In a call center environment, Clients should be encouraged to side-jack into a quality auditor's phone and listen to a call being reviewed and watch the auditor score/grade the call. The client should also ask the auditor what they think about the call and how it could be improved - with the intent to understand the analytical capability of the auditor and the thought process. Do they discuss how changes are made to training? How new hire recruiting has been adapted? How the client is involved? How Six Sigma DMAIC or other quality methods are employed? Do they discuss the length of the call and how the call could be handled quicker? Is there a discussion around tone, cultural differences, and language? In a data processing center, Clients should watch the auditor and ask the same question. In an IT outsourcing shop, you want to see the quality team's scripts and, if possible, their manual test execution (although the problem in the IT world has more to do with requirements understanding). You want to see specific examples of the testing, how six sigma processes have reduced error and how changes have been made to the requirements gathering and high level design phases. In all cases, you want to look at the use of tools and applications. Is the vendor using home-grown MS Excel? Or are there the applications that automate the quality process? Then it's time to see the training function - and you repeat the process through each functional area - begin in a conference room and migrate into the functional area to see the work performed. Like you, I am skeptical of copy and paste sales pitches made in a fancy conference room. I prefer to linger in the work areas where I'm free to ask (and encourage clients) to ask questions of everyone they see. I vividly remember watching a data entry senior agent pound through 2nd pass error correction without the use of OCR technology, despite a very persuasive presentation made by the global IT VP discussing the use of OCR. I asked the agent why there was no use of OCR, and he said, "It's not accurate enough for the client's quality standards." At that point I knew that the vendor's IT team lacked the the skills to manage a high quality OCR application, and that overall quality would be difficult to control in a manually audited world. Rosemary, I completely agree with deep diving into vendor operations! When I evaluate a vendor’s quality team, I begin with a generic capabilities presentation, which must be delivered by the actual site’s lead quality resource (not the sales person and not the vendor’s “global EVP of quality” – I want to meet the person who actually leads the team). Then we move into site’s quality area to see the work in action. In a call center environment, Clients should be encouraged to side-jack into a quality auditor’s phone and listen to a call being reviewed and watch the auditor score/grade the call. The client should also ask the auditor what they think about the call and how it could be improved – with the intent to understand the analytical capability of the auditor and the thought process. Do they discuss how changes are made to training? How new hire recruiting has been adapted? How the client is involved? How Six Sigma DMAIC or other quality methods are employed? Do they discuss the length of the call and how the call could be handled quicker? Is there a discussion around tone, cultural differences, and language? In a data processing center, Clients should watch the auditor and ask the same question. In an IT outsourcing shop, you want to see the quality team’s scripts and, if possible, their manual test execution (although the problem in the IT world has more to do with requirements understanding). You want to see specific examples of the testing, how six sigma processes have reduced error and how changes have been made to the requirements gathering and high level design phases. In all cases, you want to look at the use of tools and applications. Is the vendor using home-grown MS Excel? Or are there the applications that automate the quality process?

Then it’s time to see the training function – and you repeat the process through each functional area – begin in a conference room and migrate into the functional area to see the work performed. Like you, I am skeptical of copy and paste sales pitches made in a fancy conference room. I prefer to linger in the work areas where I’m free to ask (and encourage clients) to ask questions of everyone they see. I vividly remember watching a data entry senior agent pound through 2nd pass error correction without the use of OCR technology, despite a very persuasive presentation made by the global IT VP discussing the use of OCR. I asked the agent why there was no use of OCR, and he said, “It’s not accurate enough for the client’s quality standards.” At that point I knew that the vendor’s IT team lacked the the skills to manage a high quality OCR application, and that overall quality would be difficult to control in a manually audited world.

]]> By: Rosemary Coates http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/comment-page-1/#comment-1124 Rosemary Coates Wed, 18 Nov 2009 02:36:28 +0000 http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/#comment-1124 I think you have treated the site tour too lightly. I always work with my clients in advance of traveling to determine a list of things to ask and validate during the actual tour. I often find that what we are told in the conference room cannot be validated on the operations floor. This is the only way to check. I think you have treated the site tour too lightly. I always work with my clients in advance of traveling to determine a list of things to ask and validate during the actual tour. I often find that what we are told in the conference room cannot be validated on the operations floor. This is the only way to check.

]]> By: Offshore Outsourcing RFPs: Are They Encouraging Copy and Paste? | 360° Vendor Management http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/comment-page-1/#comment-1122 Offshore Outsourcing RFPs: Are They Encouraging Copy and Paste? | 360° Vendor Management Tue, 17 Nov 2009 03:13:19 +0000 http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/#comment-1122 [...] meet and rarely assume the resources will improve.  What you see is what you will get… use our site visit agenda to drive the meetings to create consistency among vendor [...] [...] meet and rarely assume the resources will improve.  What you see is what you will get… use our site visit agenda to drive the meetings to create consistency among vendor [...]

]]> By: Attention Vendor Management Professionals: 360 Vendor Management is Back! | 360° Vendor Management http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/comment-page-1/#comment-1093 Attention Vendor Management Professionals: 360 Vendor Management is Back! | 360° Vendor Management Mon, 23 Mar 2009 19:28:01 +0000 http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/#comment-1093 [...] a Successful Outsourcing RFP - Developing scope, evaluation criteria, and conducting site visits are only a part of the activities you must complete to select and negotiate an outstanding service [...] [...] a Successful Outsourcing RFP – Developing scope, evaluation criteria, and conducting site visits are only a part of the activities you must complete to select and negotiate an outstanding service [...]

]]> By: Vendor Management and Learning Curves | 360° Vendor Management http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/comment-page-1/#comment-50 Vendor Management and Learning Curves | 360° Vendor Management Tue, 08 Jan 2008 21:46:49 +0000 http://360vendormanagement.com/2007/12/09/vendor-evaluations-understand-an-outsourcing-vendors-operations/#comment-50 [...] a statement of work suitable for including in an RFP. Furthermore, failure to fully understand the core operation management best practices a vendor should have in order to successfully manage an operation could result in failure…and [...] [...] a statement of work suitable for including in an RFP. Furthermore, failure to fully understand the core operation management best practices a vendor should have in order to successfully manage an operation could result in failure…and [...]

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