outsourcer

​Ten Important Questions To Ask Yourself Before Diving Into Outsourcing

Zurab Samushia
Nov 3, 2021

In the third decade of the 21st century, a fewer number of companies keep asking why is outsourcing important. Most CEOs are already aware of the advantages of outsourcing. If you still aren’t familiar with them, however, let’s briefly highlight the major ones below.

Why do companies choose to outsource work?

  1. Cost-cutting. Shifting some part of everyday activity to outsource can be cheaper than actually having a hired worker to do the job.
  2. Getting access to a bigger pool of talents. Even in your backyard, the available pool of talents might be greater than you’re currently have hired in your company.
  3. Access to better software. Before you outsource, you may not even know that the software you currently use may be out-of-date, not good enough to beat competitors, or simply a bad one.
  4. Smoother processes. A specialized outsourcing company may have its processes so optimal that you immediately streamline your productivity, enhancing it way better than you might have expected.

As a result, you will have resources freed: personnel and money. Also, as a CEO, you achieve one major goal – focus on development instead of dealing with tiresome everyday corporate hustle and bustle.

Ten things to consider before going to outsource

Here is a list of things, you should consider before outsourcing:

  1. Cost saving. What’s offered by a vendor? How realistic is the offer? What are the hidden or unconsidered costs? How they will grow in the future?
  2. Quality level. This must come in close connection with the previous. If the price is too low, this might be a direct result of poor quality. Or something is not considered, which wouldn’t allow reaching your goals at all or in the way you’ve wanted.
  3. Offered deadlines. If you’re outsourcing not a continuous process like a contact center to handle all incoming client contacts, you often seek deadlines to be met. Like, attract 50,000 new customers in 7 months. Or commissioning a new piece of software in 3 months. That deadline must be agreed to be met by your vendor and you have to understand they have the manpower, expertise, and other resources to reach the deadline.
  4. Technology and processes. Seeking outsourcing, you might be interested in access to better software and processes to outrun your competitors. After all, you could adopt something for your company on a constant basis outside of outsourcing (or when your outsourcing contract ends). It’s a good point since you have to understand what the market offers to your particular company.
  5. Minimal supervision. Although you might still need an account manager for your outsourcing vendor, the more independence your contractor is able to show during everyday work the better. This will free you from close hands-on control and dealing with childish issues like “we didn’t have cool water delivered to our office and that’s why we didn’t attract 50 new clients this month.”
  6. The level of contractual obligations, liabilities, and KPIs, which are to be rigidly met day after day. A lot of things are discussed orally before you start cooperating. But when it comes to the contract signing, it turns out that nearly none of the discussed areas of liabilities show up in the contract? Do not choose such a vendor who isn’t ready to put into a binding contract everything you will have discussed with them.
  7. Trustworthiness of a vendor. Being sure about the deliverables is great. But before you get to work with any vendor at all, study their reliability and business reputation. The reason is that you should be absolutely assured that your data, processes, know-how, and information won’t be stolen, leaked, or improperly used.
  8. Team leadership. There has to be a strong person assigned to lead the team on the vendor’s side. Talk to them, make sure they’re able to provide you with the necessary goals, KPIs, and other deliverables. Basically, this man will be responsible for an entire chunk of outsourced work, so treat them as a hired teammate, study them thoroughly, and find out about contractual interest in meeting your goals and working for your company on an everyday basis.
  9. Communication. There must be clear, concise, and effective communication of a required level and in required channels. Having work done is no less important than putting you in the know about it’s done. Communication is an important part of the process of choosing a vendor.
  10. Territory of the provision of the services. Your vendor must be reliable and consistent in the provision of outsourcing. It means that all predictable and avoidable risks are excluded: natural, political, military & other. That cuts out some countries and territories but still leaves a nice piece of the world in general.

Conclusion

Looking for an outsourcing vendor is not an easy process that completes within a day or a week. That is a thorough job, which you have to make as rigorously as possible to make an outsourced part of your business end up in good hands. After all, you want to free your time and have fewer headaches about it, not more, right?

back to blog page

let’s cooperate

Ready to talk? Tell us how to reach you.

Contact Information