Although the concept of outsourcing has been around for a long time, a first-time outsourcer, or even a seasoned one for that matter, often has quite a few concerns before outsourcing a new project. Outsourcing is a long-term relationship that can succeed only if it is built on trust, integrity, and good communication. Choosing the right vendor is the first step towards establishing that relationship.
Read on to find out the top 10 concerns regarding outsourcing—and how you can select the right vendor by asking the right questions.
To check if a potential vendor is reliable, clients must do a basic background check of the vendor’s history. This would include researching details such as the number of years the vendor has been in the outsourcing business, the recent financials of the company, the number of employees on the vendor’s payroll, and asking for client testimonials as well.
To determine the vendor’s quality of products and services, clients can look into the customer references provided by the vendor, or alternatively, get a free trial that some vendors offer. This can help them check if the quality is up to their in-house standards. Also, be sure to check if the client has certifications such as ISO 9000 and CMM, which are provided by independent rating agencies.
With cost being the biggest reason that drives outsourcing, it is imperative that the client is made aware of the total product cost that can accrue over the course of the product life cycle. Be informed and discuss with the vendor ahead of time about the different types of hidden costs such as maintenance, infrastructure, training, and transition, which could add to your final bill.
Choose a vendor who takes data privacy seriously. Your outsourcing vendor should provide data security on two levels: infrastructure security including firewalls, access controls, data encryption, etc., and human resource security that involves pre-recruitment checks and signing of non-disclosure agreements.
To ensure that your work gets completed by the pre-agreed deadlines, choose a vendor with strong client referrals. Also, take care that realistic deadlines are set to start with. This will enable you to get your project finished on time.
Yes, they may. To be on the safe side, choose a vendor with a sufficient number of cross-trained employees and enough employee buffer capacity.
Unknown risks can affect a business at any given time. Take the time to analyze and study the various risks involved in outsourcing, and have a suitable back-up plan in place, in case anything goes wrong. To reduce the risk to your business, choose a vendor willing to invest in a reliable business continuity/ disaster recovery and risk mitigation plan.
Insist that the vendor agree to fully transparent and fair financial dealings before signing the contract. Also be sure to check up past client references to see if they have faced any problems with the vendor in question.
Very often, the offshore vendor may not be fully aware of the statutory laws and regulations of the country to which the client belongs. Violation of such laws may entail the client to moral, if not legal damage. Therefore, it is the client’s duty to choose a vendor who is aware of, and willing to abide by the laws and regulations of the client’s home jurisdiction. This covers the whole gamut of laws and regulations regarding employee working conditions, environmental concerns, privacy infringement rules, etc.
While the vendor’s culture may not match that of your organization’s on all scores, a certain degree of similarity must exist with regard to business ethics and workplace culture. Base your selection on how you feel during your initial communication with various potential vendors.
Outsource2india has over a decade of experience in providing successful outsourcing solutions to clients from all over the globe. Our strong belief in ethical outsourcing, along with absolute transparency in all our dealings have made us one of the most preferred outsourcing companies in India.
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