Choose an outsourcing partner

Outsourcing is about creating a successful partnership.

Choosing a company to outsource to is very different from choosing an ordinary supplier. You’re embarking on a long-term relationship, so take your time.

Look in detail at your potential service provider. It will be worthwhile considering some of the following areas.

Track record

Does the provider have a track record of service commitment? Has it been recognised within its own industry? Does it track customer satisfaction levels? Is it improving? How good are the service level agreements it offers?

Account management

Account management is critical to your relationship. How will your account be managed and how good – and available – is your account manager?

Customer references

Who are the provider’s existing customers, and how satisfied are they? Speak to at least five existing customers with an industry profile similar to yours. What are the service provider’s strengths? How does it deal with problems?

See them at work

Visit each potential service provider. Look at the environment in which their people work and enquire about staff retention and turnover. Check their IT systems and equipment, management processes and quality assurance procedures.

Financial stability

This relationship is for the long term, so make sure that your potential partner is financially stable. If it is a limited company, get copies of its recent accounts, ask for banker’s references and consider getting a report from a credit checking agency.

If you choose to outsource to a company outside the UK, remember that distance and time-zone differences will make control more difficult. Language problems and different business cultures can also present problems and you will need to allow for exchange-rate fluctuations in your costings.

Ask your potential service provider if they plan to subcontract any of your work and if so apply the same checks to the subcontracted company.

Source: Business Link
 
 

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