Selecting international service providers – how to conduct a successful selection process

Selecting international service providers – how to make the selection process a success

At first glance selecting an international financial service provider looks like a standard invitation to tender, but it is actually a highly complex process of strategic dimensions. Global companies face the challenge of having to take care of many different requirements at the same time – technical conditions, international and local regulations, the scope of services and pricing. A structured selection process creates clarity and transparency. At the same time, risks can be minimised, and a well-grounded decision can be made for a partner who is a good fit long-term.

Market screening and prequalification

The process starts by realistically narrowing down the market. Screening the market gives you an overview of the providers that can be considered, considering factors such as size, geographical presence, reputation and previous relationships. Alongside this, companies should clearly define which services are required and which countries are included in the scope. This preliminary work leads to a more manageable short-list, which keeps the process controllable and efficient. 

Creating a request for proposal document

The next step is to create a request for proposal (RfP). This document forms the basis for the submission of tenders and ensures that all those tendering understand precisely what is expected. 

This includes:

• a description of the company, including organisational structures
• objectives and background of the RfP, including current challenges
• scope of services and countries
• requirements for the delivery model
• information on system architecture and technical requirements
• quality standards and KPIs
• format and pricing specifications
• deadlines, points of contact and communication rules
   

The clearer the RfP is formulated, the more informative the proposals will be.

It is advisable to provide a pricing template (e.g., in Excel or via a procurement platform) to ensure the comparability of proposals. In addition, financial data and other information about the entities in scope should be collected and made available for review to enable realistic pricing. If this is not possible, the company should assess the complexity itself. Both steps can be time-consuming, especially in decentralized structures, but they pay off significantly during the subsequent selection process.

Communication and Q&A phase

So that bidders can submit precise and comparable offers, they must have the opportunity to ask questions. This can be in writing or in Q&A sessions, depending on the complexity of the project and internal resources. In this phase, transparency and clear communication are crucial.

Evaluating the proposals

After receiving the proposals, detailed evaluation begins. This is not just a matter of price but also of:

• implementation capability
• technological competence
• understanding of the business model and company-specific challenges
• reliability of the concepts
• resources and team structure

This phase lays the foundation for the pitch presentations based on the short-list.

Presentation and decision

In the final discussions, the service providers present their concepts and answer any open questions. This is where it becomes clear whether chemistry is right and whether the provider can be a reliable partner long-term. The structured process allows for an objective evaluation and ensures that the provider is selected on a solid basis.

Conclusion

Coordination, clarity and a defined procedure are crucial. A professional selection process saves time in the long-term, minimises risks and creates the basis for an efficient collaboration based on trust.

Read more: Part 2 – The crucial criteria in selecting an international service provider