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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