Outsourcing Advice – How to Outsource Correctly
Why contract out an internal business process or function to a 3rd party?
There are a multitude of reasons why companies might decide to go ahead and outsource with an offshore company. In the majority of cases, it saves money and it is cheaper than running the service in-house, with the added benefit of flexibility. Furthermore, it allows for the company to focus on the core details and outsource the more simple functionalities. It is imperative that if a company does decide to outsource, that they evaluate the options and outsource correctly.
Lead to Market’s Outsourcing Advice
- Determine whether you are an outsourcing candidate. You may outsource any process that is not the main focus of our business. In addition, ask the question whether the outsourcing will increase production and reduce costs.
- Set out your objectives clearly with defined scope and schedule.
- Evaluate a service provider in the same way you would when hiring a full-time employee.
- Do your outsourcing company due diligence – if possible visit the outsourcing site. In the cases of both brick and mortar outsource centers (infrastructure) and virtual centers, make sure that the company has the ability to provide you with recordings and reporting.
- Ask for client references and review the company testimonials.
- Look for the specific experience fit in addition to quality services.
- Do not choose a vendor based solely on price.
- Progress slowly and commit incrementally – do not walk in blind.
- Watch out for hidden costs.
- Be mindful regarding the security of your company data.
- Get everything in writing!
- Be an ACTIVE project manager – the great physical distance between the management and the outsourced team requires a shift in management methodology.
