6 Tips on Partnering with Great Outsourcing Companies
Outsourcing has become one of the best ways companies can complete projects without going over budget. According to industry experts, approximately 59 percent of all businesses in the United States are outsourcing tasks to reduce operational costs. This translates to an estimated 300,000 jobs that are given to outsource service providers each year.
If you run your business, you have probably worked with, or at least considered working with, an outsourced service provider. However, not every outsource company provides the same level of professionalism and service. You must exercise care when selecting the providers you work with if you want to get the job done properly and get your money’s worth.
Here are 6 top tips on how to hire the most effective outsource providers.
One of the most important steps of hiring effective outsource companies is being very clear on the scope and the schedule of the project you are hiring them for. Clarifying these boundaries not only helpS set expectations, but they are also important for negotiating price. Establishing these parameters also lets providers assess whether they are experienced or equipped enough to handle the project.
For example, when you need a C++ developer to outsource be certain about the features you’ll want from an application to prevent delays in the project. Without clear scope and schedule, any outsource provider you choose may soon become overwhelmed especially if you keep shifting the goalposts.
Businessowners sometimes make the mistake of being lax when they hire outsource providers. Just because they aren’t your employees does not mean they can’t be held to the same level of standards as the people who work for you. Before you sign any contract,you must thoroughly vet them just like you would a new hire.
If you don’t implement a thorough vetting process for any and all outsource providers you are considering, you may get stuck with a subpar provider. This vetting process should include contacting their previous clients, checking out their online reviews and assessing their responses to questions regarding experience.
Not all outsources will have the same level of experience or have employees with the same skill sets. Determining how experienced outsource providers are can help you avoid projects stalling or getting output that’s below your company’s established standards. Experience can make or break not just your project but maybe even your whole business.
For example, if you are handling a cleanup project, you should definitely trust the hazardous waste disposal to only the most experienced hands. Otherwise, you are opening yourself up to injury lawsuits and risk harming employees.
One massive hurdle companies face when hiring outsource providers is only considering the price of the services. Although outsourcing is mostly done as a cost-cutting measure, basing your decisions only price is a good way to make sure you get poor quality outputs. You should always leverage the price of the outsourced jobs with their level of expertise.
For example, a relatively new company may be offering their services at amazingly low prices, but have they handled projects in the scope and size of the one you need them to do? Outsource providers with lots of experience will definitely price themselves higher but their long expertise will make every penny worth it. Check both your budget and the parameters of the project when hiring outsourced companies and you can be assured of quality service.
Payment is one the most critical and sensitive areas of negotiating any arrangement with an outsourcing company. The most common arrangement is that they’re paid once they accomplish certain milestones in the project they’re handling. This is where establishing parameters such as timeline and scope become relevant. You can assign payment schedules at appropriate times, provided the outsourced company has met the milestones you’ve agreed upon. Such arrangements make it easier to keep them on track and everyone is aware of when payments should be made.
Finally, you should always be clear on who can claim ownership of the output. For example, if you hire an outsourcing service to provide all the photographs and graphics for a website you are building, do they get credit for it on the site? Putting such details to rest at the very beginning of a project is the best way to go forward. This will remove any awkwardness later on and maybe even avoid legal repercussions in case one party tries to bring a suit for infringement or claims.
Partnering with an outsourc ingprovider should be done carefully and with plenty of preparation. These tips will help ensure your company chooses only the best and most effective outsource firms to work with, securing output and profitability.