Navigating BPO Procurement: Insights for Improved Transparency and Efficiency

While many not be aware, intermediaries acting as brokers in BPO procurement can lead to inefficiencies, inflated costs, and reduced transparency for both customers and suppliers. Customers often face delays due to outdated processes and higher costs from broker commissions, which are typically passed on. Brokers may also limit supplier options, reducing competition and fairness in the procurement process.

Suppliers, on the other hand, may encounter limited growth opportunities and high commissions that eat into their margins. These models often involve repetitive, inefficient processes, further complicating procurement.

To mitigate these challenges, tkg have put together some advice on how to spot when an organisation is acting as a broker and what practices to follow to ensure transparent, efficient, and cost-effective procurement decisions.