Jul 05
Five Factors To Consider When Selecting An Outsourcing Vendor

Five Factors To Consider When Selecting An Outsourcing Vendor

There are many reasons why you should outsource right now. Globalisation has made it easier for any company with the right products and/or services to scale their business much more quickly….provided that they have a strong team behind them.

Choosing your remote team’s members can be an arduous task. You can hire directly through several websites and platforms, but there aren’t any guarantees about their integrity or loyalty. Also, you have to be cautious about what tasks to outsource and what not to.

On the other hand, you can also ask for help. There are many experienced outsourcing vendors that can actually do the virtual legwork for you. *wink*wink* The best ones won’t just help you find the right people, but they’ll also provide you with the support and structure for managing them properly.

Let’s say you’d prefer to seek help from the experts. How do you choose the right outsourcing vendor? Here are five things to consider:

Subject Matter Expertise

Subject-Matter-Expertise

First, use the internet or reach out to your network to look for possible vendors. Once you’ve shortlisted your potential vendors, carefully analyse their expertise and experience.

Identify their strengths and assess their readiness and competence in addressing your inquiries and concerns. You want a vendor who can cater to your needs, especially if they’re urgent, and do so in a timely manner.

Some outsourcing vendors specialise in IT functions while other firms offer top talent for sales, customer service, and graphic design. Identify which role you are outsourcing for and then choose the expert vendor in this area.

Remember, you have to know what they can bring to the table as early as possible.

Business Approach

Business-Approach

Whether you’re looking for a short term or long term partner, your outsourcing vendor’s business approach is crucial. You definitely want a vendor whose business approach is aligned with your strategies.

For example, having the latest software, most innovative tools, and cutting-edge technology stack is great. However, if the vendor has poor customer service or isn’t very prompt about addressing your questions or concerns, they might not be a good fit for your team.

Ditto if their corporate values aren’t aligned with yours. Therefore, don’t hesitate to probe your vendor’s opinions on key subjects or concerns before fully committing to any agreement.

Industry Reputation

Industry Reputation

A simple background check will usually suffice. You can check out the vendor’s Facebook page or their Google reviews, for instance.

However, you can also reach out to your vendor’s previous and current clients if you want a more in-depth look. Not everyone has the budget to put their name out there, but you can verify a vendor’s ability to deliver by doing a little asking around.

Longevity is a good sign for any vendor in the offshoring industry. Widespread customer satisfaction would be even better.

Cost Effectiveness

Cost-Effectiveness

There are many reliable outsourcing vendors with affordable rates. But be wary of bidders with suspiciously cheap ones too. Chances are, their service agreements come with hidden charges, so look before you leap.

Vendors with rates that fall way below the industry standard might also be more trouble than they’re worth. They might be exploiting their workers or attract less than competent talent. Partnering with them might make you spend more money cleaning up the resulting mess, greatly offsetting any initial cost savings.

Don’t forget to set a realistic budget and to inquire about the scopes included in the vendor’s proposal. Ideally, this should cover all your requirements without you having to shell out additional payments.

Data Security

Data-Security

Data privacy and security are always paramount in outsourcing. When you hire a third-party contractor, you will likely be sharing confidential and sensitive information with them. There’s no such thing as being too cautious when it comes to your security.

When evaluating outsourcing vendors, ask them about their digital security measures and privacy policies. Make sure that they’re aware of your IP rights as well. As an added precaution, have them sign a non-disclosure agreement before you finalize things.

Finding the right outsourcing partner can be tricky. But once you do, the rewards are well worth it.

Remote Staff has been a trusted outsourcing partner of many Australian SMEs and entrepreneurs for the past 14 years and counting. Whether you need to assemble a remote team or require a platform for managing your remote workers, we can help you out.

Call us today or schedule a call back and let’s get started.

 

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About The Author

Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for Pepper.ph and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at serena.estrella10@gmail.com.

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