Criteria for Selecting an Outsourcing Partner

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Outsourcing involves creating a productively successful partnership. And there are a multitude of choices for outsourcing partners. Each sourcing company is unique and nothing equally the same as any other in terms of service level, business principles, methodologies and  business models. Finding the perfect outsourcing partner can be a daunting task but is imperative to the success of any outsourcing partnership arrangements.

Choosing a perfect outsourcing partner for your company requires answering some questions which will determine and identify your outsourcing needs.

• What are the processes in your business that need to be outsourced? IT functions (technical support), business processes and HR (recruitment), Finance (payroll and accounting services), Sales and Marketing, Health and Safety (medical, insurance, etc.) are some of the non-strategic and non-core activities your business might need outsourcing to. By identifying the business activity you would like to outsource, you will be able to collect the information on outsourcing service providers specializing in those areas or fields of expertise.
• What is the required level of service? The outsourcing partner should have a good understanding of the product or service they are to provide for your business. They should be able to provide you with an implementation processes to be adhered to in order to achieve success.
• Will it be cost-effective to outsource? The outsourcing should provide your business with a good competitive advantage to make the whole process a wise financial and resources investment.
• Will outsourcing improve your business’ efficiency to carry out implementable new business strategies or investments? By freeing some of your personnel and making them concentrate on core business tasks, outsourcing can bring flexibility to the business’ costs and capital allowing to venture into other business challenges.  

When these are properly identified and answered, the next step would be checking out the many outsourcing companies that might be a potential successful partner for your business. Similarly, some key points to consider when scouting for an outsourcing partner for your business:

Project Experience or Track Record

It will give you an idea of how competent the outsourcing provider is if you know the kind of customers or partners they have provided services and the number of projects they have thus far completed. Check if they are recognized or heard of within their own industry. Find out if you can on customer service level of satisfaction. Blogs are usually the best sources for this information.

 

Operational Reliability and Financial Stability

Check out the company details like the number of years they are operating, number of employees, number of satellite offices, their history and experience in the business. Tangible business models should show their capability to understand your business goals with the right process, technology and personnel to implement it.

Find out about their financial standing and who are the directors and top management. This will give you an idea if they have a solid financial status.

References

A good way to check most of the critical information is by knowing who they have worked with in the past that can vouch for the quality of service, customer support services, timely deliveries, reliability and turnaround time. All these are vital in making a good call in choosing the right outsourcing partner.

 

Service Level Terms and Conditions

Different providers have different service level terms and provisions. Terms on payment, deliverables, timelines, implementation guidelines, allowable restrictions or limits, etc. should be explicitly discussed by the outsourcing partner in order to avoid conflict or misunderstanding later on. You may ask some of their references a little information on these if you can.

Infrastructure and Technology

A good outsourcing partner invests in their technology and service platforms. They should also utilize time-tested management tools and programs to continuously improve the quality of their service. A physical visit to the outsourcing partner’s business office will let you know if they give importance to these elements critical to their business operations. You need to know that they have the right equipment to handle and manage your product and service and if they are able to provide post-development support to resolve any issues that may crop up after the project’s implementation is completed.

Communication

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A high level of communication between the outsourcing partner and the business will ensure a project’s success. This will pave the way for a better understanding of the needs, goals and objectives of the business and the outsourcing partner’s translations of such issues in terms of their implementation processes. Communication is critical to any business relationship.

 

See them at work

The best way to see how the outsourcing partner works is to visit them during business hours where you can observe how they ago about specific projects.  Even for potential partners offshore, you need to visit their operations before making any final decision on your choice.

These are just some of the important criteria your business has to take into consideration in your selection of an outsourcing partner. The basic rule is to look for one whose vision is that of providing efficient productivity, competent business transformations and substantial cost savings for your business. If they work around these parameters, you are guaranteed of tangible results for your business.

When you have satisfied most of these criteria, you will have less to worry about the activities outsourced and will have to pull your time and effort in addressing the needs of the core business to improve the business activities. After all, one of the reasons you have considered to take on outsourcing is to push the resources (human and financial) to beefing up business strategies and new program or project development.

The decision to outsource your business activities is more or less tied to long-term goals and objectives. Make periodic assessments to see if the decision results to financial benefits, improved customer service, faster and accurate technical support, reduced errors in the delivery of service, improvement in the efficiency of adhering to timelines and delivery dates, etc.

Constant communication will ensure that the terms agreed upon are observed and implemented. While the outsourcing partner has the responsibility to take care of the outsourced business activity, you still have to participate actively in managing the relationship.