AMITY BUSINESS SCHOOL

MANAGING BUSINESS PROCESS OUTSOURCING

ASSIGNMENT

Vender Selection For Outsourcing A Business

Process

Submitted to: Submitted By:

Dr R. Sujatha Deeksha Gupta
A18
A0102317007
 ASSIGNMENT

VENDOR SELECTION FOR OUTSOURCING A BUSINESS

PROCESS

Assumptions

The business we are considering here is Google Company Gurgaon, where the
activities associated are:

Primary- IT Operations, Associate Account Strategist, Software Developer,

Product Design, Project Management, Marketing & Sales, Transport Facilities,
Warehousing, Revenue Services

Support- Human Resource Management, Business Process Support, Finance

 Activity Being Outsourced: Payroll (Human Resource Management)

 Nature of activity: the activity includes salary, benefits administration, time
& attendance
 Size of organization: A 80000 sq feet area.

 The Eight Step Vender Selection Process

1) Appointment of Vendor Selection Team

The vendor selection team would include:
 Senior Management
 HR Head
 Finance Head
 Legal Staff with Contract Expertise
 End Users (Employees)

2) Establishing the qualifications for selecting the vender

 The vendor must have at least 10 years of experience as a core payroll

service provider and must be up to date with legislative changes.
  Vendor organization must be well established and must be stable in
terms of finance, organizational structure, organizational policies etc.
 Vendor must offer latest technology like employee self-service as
E-pay slip, E-leave, mobile focused apps and platforms.
 The vendor must prioritize employee expertise and should provide
with-in country support.
 Must be anytime accessible to employees
 The vendor must provide for customizations and up-gradation of
platforms and application according to different themes.
 Should have industry specific experience.
 Vendor must have high trust, commitment, ethics and governance
record.
 Quality of product or service should not be compromised.
 Vendor must have a level of data security and accreditation
 Consistency in performance and deliverables would be appreciated.
 Vendor must have punctuality of timely delivery of the product/
service.
 Vendor must be flexible in working style.

3) Developing a "Long List" of Service Providers

Potential venders list:

 Vaco Binary Semantics

 HCL

 Accenture

 Global Logic

 Annalect

 Blue Vector
  Gartner

 Essence

 91springboard

4) Request for information

After preparing the long list of the potential vendors and write a request for
information to know more about the potential vendors from them. The
information that the organization would like to seek from the vendors would
be:
 Capability interview
 Rate at which they are transacting with others.
 Their customers.
 Organizational culture to check the cultural fit.
 Time zone followed by the vendor.
 Recent projects.
 Data security methods used by the vendor.
 Technology used by vendor for mobile application, platforms, or
website development.
 Internal or external conflicts faced by vendor.
 Financial stability of the vendor.
 Market share value of the vendor.

On the basis of Request for Information we evaluate the responses of the vendors to
select a "Short" list of vendors.

 Accenture
 Vaco Binary Semantics
 HCl
 Global Logic

5) Request for proposal

Once the business requirements are defined, and we have a short list of
vendors that we want to evaluate. We write a request for proposal and send it
to the short listed vendors for the process being outsourced, that is vendors
 involved in website and mobile application development. The request for
proposal would include the following:
 Submission details
 Introduction about the company’s compensation structure and
executive summary.
 Overview of the vendor business and background about our business.
 We would mention the detailed specifications about the services/
product we expect from our vendor for the process being outsourced,
such as quality, delivery time, duration, features of website and mobile
application, customers etc.
 The terms and conditions for contract to happen and during and after
sales service of the activity.
 The selection criterion would be clearly mentioned in the RFP to avoid
any confusion regarding the selection of the vendor.

6) Evaluation of proposal
Once the vendors send their proposals, we would evaluate the proposal by:
 Telephonic interview
 We would talk about their testimonies
 We would enquire about the certifications and skill inventory of the
vendor by the help of CVs of their team sent by the vendors.
 We would record and evaluate the requirements of the payroll service
and the requirements of the vendor.
 We would evaluate the performance of vendor by the help of its projects
with other clients.

7) Selection of a "Short List"

After the evaluation of proposals sent by the vendors, we shortlisted the
following vendors and would invite them for presentation. In this
presentation, contingency plans, financial plans would be highlighted.

8) Face to Face Contract Discussion

This is the pre contract discussion. In this we discussed about service level
agreement and scope of the work agreement.