Assessing Your Outsourcing Vendor

On March 24, 2013, in Outsourcing, by Business Development Group
Assessing Your Outsourcing Vendor

Selecting the right outsourcing vendor is crucial in that the vendor’s performance and output can greatly affect the client firm’s service quality to their customers.

Once an organization makes the decision to outsource certain business functions, the next steps following this decision will include assessing and selecting an external partner from a number of outsourcing vendors that are out there. Selecting the right outsourcing vendor is crucial in that the vendor’s performance and output can greatly affect the client firm’s service quality to their customers.

When selecting an outsourcing vendor or outsourcing service provider, the client firm needs to consider these important areas:

 

Company Culture & Management Processes

First and foremost, know the company’s strength and their standing among other clients, whether they have satisfied their previous clients or not, and if there are unsatisfied clients, what caused the project to fail. It is also important to know the company’s vision, business stability, growth strategies, business model, work culture. As for their management strategies, assess processes like: quality methodology and certifications, as well as project management and governance.

 

Related Article: Offshore Outsourcing: Signs Your “Long-Distance” Relationship Is In Trouble

 

People & Manpower Resources

Another important aspect to evaluate is the quality of the outsourcing vendor’s manpower resources. This includes such aspects as: education and skills, hiring and training processes, performance management process, compensation and benefits package, operational scalability, employee turnover as well as retention/attrition rate.

 

Related Article: Critical Aspects of Outsourcing: Cost, Quality, and Value

 

Information & Communication Technology (ICT) Infrastructure

Your potential outsourcing vendor’s information & communication technology (ICT) infrastructure is definitely one of the most important areas for assessment. Evaluate such capabilities as: software applications, IT expertise, network security capability, power/energy back-up, as well as internet & communication back-up.

 

Related Article: Offshore Outsourcing Tips

 

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5 Commonly Outsourced Business Processes

On March 15, 2013, in Outsourcing, by Business Development Group
It has been reported that outsourcing is on a steady rise. This means that a lot of companies put their trust into the outsourcing industry.

It has been reported that outsourcing is on a steady rise. This means that a lot of companies put their trust into the outsourcing industry.

It has been reported that outsourcing is on a steady rise. This means that a lot of companies put their trust into the outsourcing industry; from customer and technical support to back-office functions, such as actuarial modelling, retirement plan record-keeping and tax processing, these are mostly outsourced now, which is a legitimate way to reducing business costs.

Related Article: Offshore Outsourcing Tips

 

These are the following commonly outsourced business processes:

1. Graphic design projects.

The demand for one-time graphic design work shot up during the past few years. Firms saw that it is more economical to outsource graphic design work to freelancers or service providers. Freelancers provide a lesser cost and will almost always go above and beyond to deliver a quality product in the hope that it will offer them positive referrals, as word of mouth is their key marketing tool. Furthermore, you can be assured that they themselves do their own work.

2. Accounting and bookkeeping.

Many companies aren’t comfortable yet with the thought of having their finances and bookkeeping outsourced. However, more and more companies are now considering outsourcing as it is a great strategy to reduce the cost of having an in-house accountant and takes off the worry about having to coordinate with an in-house finance department.

Related Article: Critical Aspects of Outsourcing:  Cost, Quality, and Value

3. Events and administrative/repetitive tasks.

Business people are always on the go. Most of them don’t have the time to personally search for the perfect venue, food, music, security, theme and invitations; call suppliers or answer e-mails. This is where outsourcing comes in. Event organizers have trustworthy connections and contacts to deal with all aspects of the occasion to crack your head and waste time worrying on if everything is all accounted for. Additionally, virtual assistants will be working remotely and will handle all your emails and contacts for you, so you can concentrate on more important meetings and work.

4. Photography.

In this age and generation, almost everybody can afford to buy a SLR. However, that doesn’t mean that if one has a SLR, he is an expert photographer. It takes skill and talent to take the right shot at the right moment. However, to put an in-house photography process would cost a lot of money whereas hiring a professional photographer (who has the necessary equipment and the know-how to make the most of their subject) only when it’s needed would save more money for the company.

5. Small and one-time projects.

Basically, anything that can be done or delivered using the internet can be outsourced nowadays. This business model has flourished because of the number of tasks that is subcontracted to freelancers and third party experts. Furthermore, providers pride themselves in doing a great job, because generating good feedback and publicity is their way of getting more business and projects. As a precaution though, it is advised to check for the service provider’s qualification, ask for references and if it is something creative, browse their portfolio so you can get an idea of their ability and style.

Related Article: Outsourcing: Solution to Start-ups’ Skills Gap

 

Casey Answers to Outsourcing Questions!

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