Five Essential Tips for Maximizing Your BPO RFP Process

I still remember my first experience responding to an RFP for BPO services back in the early 1990s. At that time, the call center industry was still in its infancy, and people would often repurpose RFPs from other business needs, resulting in generic requests that could apply to anything from mail processing to temporary staffing. Surprisingly, even after three decades, not much has changed. Many RFPs today, due to involvement from various internal stakeholders, still lack specificity and seem like they could be used for purchasing copy machines or insurance.

However, one significant change over the past 37 years is that people now possess a greater understanding of what to look for in BPO services. Consequently, RFPs often contain poorly worded questions that fail to provide meaningful answers, or they include an overwhelming amount of information that requires sifting through to find the crucial details for making the right decision. Unfortunately, this can turn the entire process into a tedious and exhaustive task reminiscent of an IRS audit or a colonoscopy. Drawing from my extensive experience in both sending out and responding to RFPs, I have identified the top five mistakes companies tend to make when issuing a BPO services RFP. By avoiding these errors, you can ensure a more efficient and successful selection process.

1. Limit the Number of Respondents

Determining the appropriate number of invitees for your selection process can be challenging. It depends on factors such as the number of eventual supplier partners, the scope of processes involved, and the geographical locations under consideration. As a general guideline, aim for six responses for each partner you plan to select. If you exceed this number, it is likely that you have not done sufficient preliminary research on whom to include and whom to exclude. Including a firm that stands no chance of being selected wastes their resources, while including more firms than necessary wastes your resources. Invest time upfront to conduct thorough research or seek assistance from firms like Cynergy BPO, who specialize in this area. Every invited company should already be vetted and have engaged in at least an initial conversation with you.

2. Streamline Your Questions

In an attempt to gather as much information as possible about each prospective organization, companies often overload their RFPs with an excessive number of questions. Before including a question, ask yourself if the answer is crucial for making a partner downselect. If not, consider postponing these details to a later stage or until the transition phase. When we inundate suppliers with too many questions, several issues arise. First, they rush to complete a vast document, resulting in less effort put into the most significant areas. Second, the responses become cluttered with generic content that offers no valuable insights for your selection. Finally, you are left with a massive amount of information that requires reading, interpreting, scoring, and compiling. Wouldn’t it be more efficient to focus on a smaller dataset that emphasizes the key areas that truly matter?

3. Be Specific in Your Questions

Take a closer look at the questions in your RFPs. How often do you ask something like, “Describe your training process” or “What is your agent attrition rate?” Although these questions might appear to elicit useful information for comparing suppliers, they often leave too much room for interpretation. For instance, without specifying what you truly want to know about their training process (e.g., classroom size, virtual or on-site training, client participation, tools used, trainer certification, ongoing training, touchpoint assessments, etc.), you will receive varied responses that touch on some aspects but not others. Be precise about what you want to know, but also avoid going overboard if it doesn’t significantly impact the decision. Other components can always be discussed in subsequent steps.

Similarly, when asking about agent attrition rate, consider how you define attrition. Is it limited to the specific location in question, all supplier locations in that geography, or the company as a whole? Does it include employee-initiated attrition, company-initiated attrition, or positive attrition (promotions)? Does it incorporate training attrition? Should it be limited to similar processes? Different companies may provide similar attrition numbers but have calculated them differently.

4. Strike a Balance Between Prescriptive and Open-Ended

While it’s understandable that some companies have a clear idea of their needs and draft prescriptive RFPs, this approach can unintentionally exclude other potentially superior options. Past negative experiences in a specific location, for example, might have resulted from a particular supplier or outdated circumstances related to market maturity. Use the RFP process as an opportunity for education, both for yourself and your organization, to discover what is possible and learn from others’ successful practices.

However, it’s essential to establish non-negotiable requirements or limitations, such as specific geographies that are out of scope due to security or licensing restrictions, or senior management preferences. Clearly communicate these red lines in your RFP.

5. Provide Sufficient Direction

To elicit meaningful solutions from potential partners, ensure that your RFP contains detailed and helpful instructions, rather than vague or unhelpful directions resembling a Request for Information (RFI) instead of an RFP. If you want partners to deliver a tailored solution, clearly explain your needs and allow them to guide you toward your desired outcome. Think of it as providing them with the paint and canvas while expecting them to create a painting of a bunny. If you omit specific colors or fail to communicate your desired outcome clearly, you may be disappointed with the final results. Even if some aspects are still undecided, subsequent discussions can address them at the appropriate time. However, establishing a common baseline from the beginning will facilitate the process.

When it comes to issuing an RFP, the process can be lengthy and demanding. However, when done correctly, it can be an educational and valuable experience that leads you to a long-term supplier partnership. Every selected supplier should be chosen with the intention of fostering a lasting relationship, and this can be achieved through a focused, meaningful, and well-defined selection process. After all, who wants to issue an RFP (or undergo a colonoscopy) more frequently than necessary?