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