business tips

Five Things To Consider When Selecting An Outsourcing Vendor – Good Tips for Businesses

Zurab Samushia
Nov 15, 2021

Today it becomes increasingly popular to use outsourcing companies to fulfill various tasks in IT, HR, Marketing, Sales, Research, Accounting, Customer Service, and other areas. It allows improving the productiveness of work, speed, and provides the sustainable development of the company without additional time and money expenses (actually, saving these).

The best outsourcing companies are able to become a part of your team, professionally fulfill tasks & provide services. A significant challenge for the majority of businesses, however, is to find a reliable and experienced outsourcing service provider. We’re exploring how to do that and avoid the most popular mistakes.

Why is it important to select the right outsourced partners?

Every promising business has a strategy. Your outsourcing partner should understand it and fit in. The choice of the right outsourcing vendor can greatly benefit your business by:

  1. Helping reach cost-effectiveness. When you know what you pay for, you can find a balance between quality and value. So you should look for experienced outsourcing specialists with low costs and nice quality simultaneously.
  2. Using a customer-oriented approach. Not everything can be determined by a contract. There are always emergency situations, which the right partner would want to deal with in your favor.
  3. Reaching higher productivity. When an experienced partner is chosen, the required work will be done fast and with contracted quality because the employees are skillful in a definite area.

A professional outsourcing company would also bring you these:

  • Time-saving
  • Lower risks
  • Flexibility
  • Increased efficiency.

If a company neglects the choice of the right outsourcing partner, this could lead to the following:

  • Poor (and declining) quality of work since the mission and standards will differ from yours or the partner might not have the required experience requested by you
  • Loss of managerial control
  • Security breaches – when partners receive access to the sensitive data and your know-how, they use it for bad (steal, sell, distribute)
  • Additional expenses (when business owners are aimed at money-saving only, it leads to many hidden expenses, growing out of the blue, especially if a contract is poorly composed.

As a result, the company exits the market soon after, losing clients and control over its business.

5 tips to select outsourcing providers

In order to avoid the described problems, it’s necessary to take care of the choice of the right outsourcing company. First of all, find and talk to several companies, make a deep analysis of their offers, business reputation, and background. It will surely require time and effort. Follow these general recommendations to find a better outsourcing partner:

  1. Check the expertise of the outsourcing company. Your particular area of expertise might weed some share of vendors off the table, leaving only the most relevant offers. Check the completed similar projects, find out similar use cases, talk to other clients of the vendor. Make sure the company is ready to consider your demands and work within the required KPIs on time.
  2. Check the vendor’s reputation. It’s important to understand how their previous customers feel about cooperation and what image on the market the vendor has. Does it hide anything in its history? Social networks and Google are surprisingly powerful tools.
  3. Pay attention to the available infrastructure and technologies. They should be reliable, modern, certified, and appropriate for your business processes. What is the backup plan for failures and other unforeseen circumstances? What security measures are used? How your sensitive data will be protected?
  4. Cultural and political compatibility. Not only companies’ views and missions should coincide. The biggest outsourcing companies are today located in various parts of the world, including India, the Philippines, Eastern Europe, the USA, and others. Cultural, political, and mental compatibility is crucial for effective cooperation. Try to avoid the mentioned to evade the possible business barriers.
  5. Know about post-process support and warranties. Since some working processes have long trails, some of their aspects may be enacted and ongoing long after the process has given fruits and fell into decay per se. Something lasts for years – and you should have a process of support of clients, who keep using your product or service after it’s no longer produced. The same concerns your outsourcing partner – what they have delivered to you months and years ago, shall be alive and supported until some reasonable lifecycle ends. Usually, a post-process assistance should be described in a contract. To better understand what we mean, imagine some piece of elaborated software – once it is put to the market, it gains some number of users. Some of them keep using this software years after it is no longer updated. If it brings you money or is important for you otherwise, you simply cannot abandon those users, who might have questions, problems, propositions, or payment issues.

Conclusion

The effective application of outsourcing can help free CEOs and other ladders of management for the development and general maintenance, leaving their hands off micromanagement (which many modern bosses desire). Although outsourcing is a productive solution, it’s crucial to spend enough time and do things right to find a reliable partner to avoid risks and problems.

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