Welcome to the July 2003 edition of eCODE's Offshore Outsourcing Newsletter (Vendor Edition). In this edition we answer one of your most frequently asked questions - how do we select vendors to work with our customers? Of course, we could just send out the details of every RTT we get to all the vendors registered on our database, but this would not only waste your time, but ours too. Instead we use the selection process described in this Newsletter to select the most suitable vendors for a project. So if you haven't heard from us yet - please be patient, you will when the job is just right for your company.

Also in this edition: details of changes to our Affiliate and Partner Programme, news of two conferences of specific interest to vendors, one aimed especially at vendors from Eastern Europe, how put your company under our Vendor Spotlight, and how to obtain a listing for your company on our web site.

Offshore Outsourcing Vendor Selection

One of the questions most often asked by vendors and customers alike concerns how the European Centre for Offshore Development selects the offshore outsourcing vendors it recommends.

Apart from reviewing technical capabilities, previous project experience, financial stability and taking up references, we also, among other things, look at the supplier's location and the number of staff. A huge number of resources isn't necessarily a good thing, some of our customers prefer the flexibility and responsiveness of a leaner organisation. Also some specialist skills are only available from smaller vendors. We also maintain our own additional vendor assessment information which we use when selecting vendors for customers. The criteria we use includes: satisfactory delivery of services and projects, responsiveness, proven technical ability and clarity of communication.

As to the actual selection process. We have three key selection models, and the choice of the most appropriate depends on how the customer wants to be involved - if at all - in the selection process. The models are:

• Single Vendor
• Short List
• Full Review and Short List.

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Model 1 - Single Vendor

As the name implies, we select one vendor - typically by internally applying the vendor short list model described below - and eCODE works closely with them to prepare a joint proposal to the end customer. This approach has worked well for us and our customers in the past, and is best suited to speculative and competitive bids.

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Model 2 - Short List

We adopt the short list model when a customer requests that we provide them with a small number of potential offshore partners to choose from.

We work with the customer to perform an initial requirements analysis and develop a Requirement Definition Document. From this we develop a Vendor Requirement Profile and we use this as the basis of a search of our vendor database. Matching vendors are assessed against the profile and put on an Initial Vendor List. We try to keep this list quite short, typically only five vendors are selected at this stage.

Having made our initial selection, we hold an initial vendor review with the customer, aiming to reduce the short list to a maximum of three potential offshore vendors. If necessary we refine the Vendor Requirement Profile and repeat the selection process.

The next steps depend on the type of commitment the customer is entering into, though we advise customers to start with a small pilot, sometimes this is not possible, and more 'due diligence' is required.

For a short or medium term software application development projects, the selected Vendors will be given a project brief, which eCODE produces for the customer from the requirements analysis and Requirements Definition Document.

Finally, we will review proposals and presentations from the short listed vendors. The European Centre for Offshore Development normally undertakes to review draft proposals for vendors to keep to a minimum any issues or questions the customer may have. We also point out any areas of weakness that we identify, so that the supplier has an opportunity to strengthen their proposition. This ensures that any misunderstandings are resolved before the customer reviews the submissions, and cuts down on the time the customer needs to review the proposals.

The completed proposals are reviewed by the European Centre for Offshore Development and the customer and a final selection is made.

For longer term partnerships, Business Process Outsourcing and for establishing Offshore Development Centres, as well as reviewing proposals and presentations we will help the customer with accompanied site visits to the prospective vendors' facilities. Our extensive experience guides the customer through visa applications, international travel arrangements, provides cultural awareness, and assists with the sometimes challenging process of meeting and reviewing vendors. Our expertise in offshore outsourcing and any previous experience of working with the vendor is used to ensure that the customer gets a fair and balanced view of the vendor's potential as a long term business partner. We also use our knowledge of the countries concerned to ensure that local travel arrangements, accommodation and the customers' dietary requirements are met.

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Model 3 - Full Review and Short List

The final selection model we use is similar to the short list model above, except instead of inviting a small number of suppliers to bid for the customer's business, an initial briefing document is sent out to all the suppliers in our vendor database that match the Vendor Requirement Definition. From the responses to this briefing document a short list of five or so vendors is made, and these are requested to bid for the contract.

This model requires a lot more work to set-up, and the larger number of vendors means that eCODE has to put in a lot more effort dealing with queries and sifting responses, the increased work-load (and therefore cost) has resulted in fewer customers adopting this model.

Benefits

All our vendor selection models have one thing in common, they benefit both the vendor and the customer by saving them unnecessary effort:

• Customers for offshore outsourcing are confronted with a staggering number of potential vendors to chose from, and then need to obtain the expertise necessary to make the correct selection and negotiate a suitable contract. Possibly with a supplier headquartered five thousand or more miles away. Fully comprehending what is available and how it compares to offerings from other suppliers or countries is impossible with out a large investment of time and money and unescorted visits to new destinations and new cultures can be a massive challenge.
  
  Our vendor selection models vastly reduces the amount of effort required by the customer, and at the same time provides a higher quality selection process than they could reasonably achieve on their own
• Vendors face countless unsuccessful sales calls and pitches before finding a prospect prepared to talk to them, let alone accept a bid for an outsourcing contract. They also face the expense of establishing and maintaining sales offices, and funding frequent international travel for key staff.
  
  Our customer contacts, and knowledge of UK and European markets ensures that vendors put their proposition to qualified customers with real needs. We will have invested months, and sometimes years of pre-sales activity, finding, qualifying and encouraging the customers you are asked to submit proposals to.

Want to know more? Call us on +44(0)23 9248 3700, or e-mail us at info@ecode.org.uk.

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Vendor Spotlight

We are planning to include a 'Vendor Spotlight' feature to headline the Vendor Listing page on our web site. Selected 'Spotlights' will also be included in this newsletter's sister journal distributed to our customers and prospects. We will only publish articles which provide genuine background information about your company. We're sorry, but out and out sales puff and hype will not be published. But information on past or present achievements, new employment initiatives, and anything else that may be of genuine interest, will. Send your contributions to us at: newsletter@ecode.org.uk

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New BPO Events

Securing business in the global marketplace is all about developing strong relationships, particularly in the offshore outsourcing arena where the value on trust and communication is so important. In November 2003 IBC Global Conferences, a division of the Informa Group (www.informa.com) will launch a unique series of outsourcing forums to support outsourcing vendors meet this challenge.

• November 2003 - The Business Process Outsourcing Forum for financial institutions
• March 2004 - The Business Process Outsourcing Forum

Each unique business forum will offer outsourcing vendors the opportunity to meet consultatively with key purchasers from leading UK and European companies, who have the responsibility of reviewing outsourcing opportunities. Purchasers will include: Chief Financial Officers, IT Directors, Chief Information Officers, Operations Directors and HR Directors.

The atmosphere of each event is a blend of one-to-one business meetings and intimate social networking. It offers a unique and informal opportunity for executives to discuss their immediate business requirements with vendors and develop key contacts for the future.

Vendors will benefit from their own private meeting table at which to host pre-arranged consultation meetings with selected buyers. Packages also include a welcome drinks reception, a key note presentation, breakfast, lunch and dinner and one night's stay at a London hotel.

If you would like to receive further details on either of these new business opportunities, please contact:

Lorraine Turton
Business Manager
IBC Global Conferences, London
Tel: +44 (0)20 7017 4022
e-mail: lorraine.turton@informa.com

For information on this and other events visit our Events page.

The European Centre for Offshore Development is supporting these events.

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Affiliate & Partner Programme

Due to the success of our Affiliate and Partner Programme, we've had to introduce a new level of registrants - Listed. The programme is now divided into the following three levels:

• Listed
  Listed vendors will have completed our vendor registration form, but have not yet undergone full due diligence by our vendor manager. Listed vendors agreeing to provide a reciprocal link to our web site will be included in the Offshore Outsourcing Vendors List
• Affiliate
  Affiliates are rigorously checked to ensure their vendor registration details are accurate and we may also take up references. Affiliate status is only awarded to vendors after we have met senior representatives of the vendor organisation.
• Partner
  Partner status is given to affiliates that have been invited to submit a full proposal, or that have worked with the European Centre for Offshore Development on a project.

For further information on our vendor services, visit our web site.

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Eastern Europe - The New Alternative

This combined outsourcing exhibition and conference on outsourcing to Eastern Europe is intended for senior managers, decision makers, business consultants and advisors, this exhibition and conference will bring customers up-to-date on the latest trend in offshore outsourcing.

Recent world events and an increasing awareness is creating a surge in interest in outsourcing to Eastern European countries. This outsourcing conference and vendor exhibition, will provide customers with the essential information they need to make informed decisions. At the exhibition customers will be able to meet and assess vendors for themselves.

For information on this and other events visit our Events page. Further details of the programme will be published on our web site when it has been finalised. Click here to register your interest in exhibiting at this event.

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Free Web Listing

The introduction of Listed status to our Affiliate and Partner Programme enables us expand our offer of a free listing on our Offshore Outsourcing Vendors List. This facility is available to any offshore outsourcing company that registers its details on our vendor registration database. All we ask in return, is that you include a link to our web site from your own web pages. Entries are greatly enhanced by photographs, so a picture of your facility or development team can be included as well. Please note, we only accept photographs, we will not display corporate logos.

Generally we use the company description text provided on your registration form as the basis of your entry. Your can send alternative text (and photographs) to our web master at webmaster@ecode.org.uk If you haven't already registered your Company's details with the European Centre for Offshore Development, we suggest you do so, and take advantage of your free web link.

For further information on our vendor services, visit our web site.

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