What To Look For While Choosing An Outsourcing Supplier?

In this blog, we will explain to you what to look for while choosing an outsourcing supplier. That is to say, the stakes are high when the responsibility of choosing a third-party outsourcing supplier in another country. For many, it could be the first time outsourcing. Even if it is not your first time and you are looking for a change. Here is a list of what to look for while choosing an outsourcing supplier:

• Digital Reputation

You can learn a lot about a vendor’s reputation based on its clients’ and employees’ opinions. Today, it’s much easier to understand what customers feel about a vendor through its social media account, website testimonials etc. After checking the digital reputation of the company, you can shortlist a few vendors which fit the bill. In addition, remember not to trust the flashy website. Do try to visit them if the stakes are higher to see the infrastructure, security system, etc. The old saying- Seeing is believing is there for the exact reason.

• Subject Matter Expertise

Once you have shortlisted a few vendors, begin by carefully understanding the nature of their expertise and the exact sets of skills they bring to the table. The idea is to choose a partner that is confident about delivering with a pre-existing skill set in place. There are a lot of outsourcing suppliers out there whose bread and butter is accounting and tax outsourcing. Don’t get mixed up with suppliers with too many service vectors whose top guys don’t speak the same language. Getting a proof of concept sorted in the form of a dry run will be a good option at an appropriate stage.

• Business Culture & Ethos

If you are looking for an outsourcing partner for a long-term project, you should go beyond understanding what they can do. Try understanding their business culture, value system and ethos. Even if a service provider comes armed with the latest technology stack, tools and expertise, if it offers poor customer service, have low employee morale and there is a cultural mismatch, you should consider whether it will be harmful in the long run. More often than not transparency remains a rarity. While dealing with outsourcing suppliers, you should pick the one which appreciates the same and provides details in an upfront fashion.

• Attrition Management

The ability of vendors to retain the resources is a daunting task these days, a vendor with a comprehensive HR program focused on the employees goes a long way in retention. Do check the same, and beware of the sham! That is to say, google reviews and other such websites offer very good insights.

• Data Security

When it comes to outsourcing, you can never be too cautious about the security of your data. During various stages of a project, you will end up sharing sensitive information in the form of your customers’ details. As a result, you need to be completely sure that no breach can take place that would put your clients’ data at risk. It would be a good idea to understand what data leakage prevention program they have in place, what endpoint security system they run, etc. 

• Pricing

Never compromise on the quality and overall reliability of a solution in favour of a lower cost. That should be the first thumb rule of outsourcing, and you can rest assured it will lead to better dividends down the line. Avoid vendors whose service-level agreements are not clear and include hidden costs. A good example is a cheap hourly rate upfront, but budget overruns will cause you to pay more.

There are other things which one may consider depending upon your business situation, but the really important ones have been summed up above.