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Analyzing Vendor Proposals with Galorath Estimation Success Packages

A large countrywide telecommunications service provider in India needed a framework to evaluate vendor proposals. The IT group within this company was responsible for maintaining and enhancing the IT infrastructure that supports all the business processes within the organization. Most of the work was outsourced to vendors and the group had the responsibility to evaluate the proposals and select the best option.

The Challenge

The organization had a team in charge of managing the vendor proposals. This evaluation team receives an estimate from the vendor that contains a representation of the work to be executed as well as an associated fixed price cost; however, there appeared to be inconsistencies in the bottoms up estimates provided by the vendors. Therefore, this company wanted to improve the estimation maturity and was seeking for a software solution that allows them to evaluate the vendor provided estimates for reasonableness.

Our Solution

The organization contacted Galorath and promptly adopted one of the Galorath Estimation Success Packages. A Galorath senior consultant guided this organization thru the estimation maturity self-assessment process. The assessment revealed that the organization was mostly following “ad-hoc” processes for their evaluations and revealed the areas of highest criticality that needed to be improved.

Galorath developed a remediation plan which included the SEER-SEM parametric estimation tool, Function Points and estimation training as well as the adoption of the Galorath estimation process catalog. Galorath worked with the organization to implement these recommendations and to ensure a seamless adoption of the new processes and tools.

The Result

The organization adopted a formal “Should Cost” evaluation process based on the SEER-SEM tool and requested that the vendors also adopt the SEER-SEM tool. The customer and the vendors now speak a common language and successfully negotiate the proposals using SEER-SEM. The proposal evaluation process now flows smoothly as the vendor comes to the table with a SEER-SEM estimate and the customer has a process in place to evaluate the model.

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