How a National Benefits Insurer Selected Nearshore BPO Partners in 120 Days Using a Blind RFI and Champion-Challenger Strategy
Benefits Insurance · National U.S. Provider · 2M+ Members · First-Time BPO Implementation · Nearshore Vendor Selection
The Challenge
A national U.S. benefits insurance provider with over 2 million members was facing a compounding operational crisis. Significant agent attrition, declining service levels, and persistent quality challenges had made it impossible for the customer service organization to meet the key performance metrics required by client contracts. The team was stretched thin, and the situation was deteriorating.
What made this challenge particularly complex was the organization's long-standing resistance to outsourcing. They prized their ability to provide highly customized service to members and recognized that the intricacy of benefits insurance knowledge made it difficult to replicate externally. For years, this belief had kept them entirely in-house — but the current crisis was forcing a fundamental shift in thinking.
Leadership recognized they needed to explore outsourced labor options — specifically nearshore BPO — but required a partner who could navigate the process with rigor and speed. The objective was clear: identify and evaluate BPO providers tailored to the organization's unique needs, success criteria, and risk tolerance, and have a recommended solution in place within 120 days.
Our Approach
Blue Orbit Consulting was engaged to manage the end-to-end BPO vendor selection process, from market identification through contracting. Our engagement spanned five key workstreams executed within the 120-day timeline:
BPO market identification and blind RFI process — Identified BPO providers with the right capabilities, industry experience, and nearshore footprint to serve the client's needs. Managed a structured, blind RFI process to ensure objective evaluation and select the best-fit providers based on capabilities, cultural alignment, and operational readiness.
Finalist selection and proof-of-concept planning — Supported the client team in narrowing the field to 2 finalists and structuring a champion-challenger proof-of-concept approach, allowing the organization to evaluate real-world performance from both providers before committing to a long-term partnership.
Cost modeling and pricing comparability analysis — Created a comprehensive cost model to evaluate and compare pricing across providers on an apples-to-apples basis, ensuring the organization could make informed financial decisions and negotiate from a position of clarity.
Technical, security, and infrastructure review — Worked with extended client and vendor teams to review networking, cybersecurity, data protection, and technical interconnection requirements specific to the client's environment — ensuring that any BPO integration would meet the organization's compliance and performance standards.
Contract negotiation and best-practice terms — Ensured that best-practice terms and conditions were incorporated into the contracting process, including performance guarantees, SLA structures, data security provisions, and exit clauses to protect the organization's interests.
The Results
2 nearshore BPO finalists selected within 120 days — The structured vendor selection process delivered two qualified finalists on time, both vetted for operational capability, cultural fit, and long-term partnership potential — meeting the aggressive timeline set by leadership.
Champion-challenger framework implemented — Rather than a single-vendor bet, the organization adopted a champion-challenger model allowing it to compare real-world BPO performance from both providers, reducing risk and creating competitive pressure for continuous improvement.
Objective, data-driven vendor evaluation achieved — The blind RFI process eliminated vendor bias and ensured that selection was based on capabilities and fit rather than existing relationships or brand recognition — a critical factor for an organization outsourcing for the first time.
Cost comparability and financial transparency established — The cost model provided a clear, comparable view of pricing across providers and scenarios, enabling confident budget planning and negotiation.
Technical and security readiness validated — Infrastructure, cybersecurity, and interconnection requirements were fully reviewed and validated before contracting, ensuring a smooth integration path without compliance or performance surprises.
Related Resources
Considering Outsourcing for the First Time?
Moving from an in-house model to a BPO partnership is one of the highest-stakes decisions a customer service organization can make. We help you navigate vendor selection, cost modeling, and contracting with a structured process that reduces risk and delivers the right fit.