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How to Successfully Choose an Outsourcing Company

Monday, July 3, 2017

/ by Nurdin Budi Mustofa
Over the last few years, there has been a growing trend towards businesses outsourcing particular services out to other companies. One of the main reasons for this trend is the technological boom which means that it is easier than ever for companies all over the world to work closely together.

Outsourcing presents a whole host of advantages to businesses. Firstly, you free up time for yourself to put more of your focus into other areas of your company. Secondly, since the company specialises in that particular field - whether it is web design, marketing or accounting - you are going to someone who knows what they are talking about. And, on top of all this, it also tends to be a cost-effective approach.

How to Successfully Choose an Outsourcing Company
However, you don’t want to outsource to just anybody. You want to make sure that you are getting the best possible results for the money you invest, whether it is a short-term task like having a new website built or a long-term task like advising you on your business finances.

So, with all this in mind, let’s take a closer look at some of the ways that you can choose the right company to outsource to in the first place.

Set Out What You Want to Achieve

As a business owner, you should always have clear business goals in mind. When you are going to choose an outsourcing company, you want them to help you achieve some of these goals. So, you should speak to several different agencies to work out the ways in which they suggest you work together to achieve your aims. Once they have had time to look at your business in more detail, they should be able to come up with some solutions and even have some recommendations for other goals that you should be aiming for. Like with any goal, you should also have a timeframe in mind for when you want to achieve it and you can also discuss this with your potential outsourcing partners.

Find Out About Their Experience

There is no point settling on a particular agency or firm before you take a closer look at what they have achieved for other clients in the past. Many agencies specialise in a particular niche, so you may be better looking at one that suits your business rather than the ‘one size fits all approach’. Let’s take recruitment as an example. You could go to firm that looks into all areas of business or you could go to one that focuses on a particular area such as payroll recruitment. And if they have clear evidence that they have been successful in your field, you will feel a lot more comfortable putting your trust in them.

References and Work Samples

How to Successfully Choose an Outsourcing Company
Following on from the previous point, rather than just taking the outsourcing company’s word for what they have achieved, you could be more thorough and ask for references so you can directly contact companies that they have worked with. This way, you will be able to find out more detailed information about their specific working practices and what they have achieved for these businesses. You should also look closer at work samples that they can offer. This can be particularly useful if you are looking to employ, say, a graphic design or web design agency. You can then see if their particular style suits the needs of your business, and you can also compare and contrast different agencies.

Ensure Good Communication From the Start

How to Successfully Choose an Outsourcing Company
A good relationship is based on communication, and this certainly goes for your business and the company to which you are looking to outsource. Firstly, though there may be certain cost advantages to outsourcing services overseas, you should ask yourself whether the time differences are going to pose any sort of problems. And you should also make sure that they are completely comfortable speaking the same language as you. Find out their preferred method of communication and how this suits your needs. Ask who your primary source of contact will be and how quickly they will respond to any questions you have for them. Ultimately, you want to set out an agreement that is mutually acceptable before you start working together so you don’t encounter any problems further down the line.

Iron Out the Details

You should set out all the details of what you want to achieve in writing before you actually agree to anything. Your outsourced agency should want to be honest with you about what is realistic as they will have a responsibility to hit certain targets. There are also other issues that may come out of this meeting including intellectual property rights. Again, it is all about making sure you are on the same page as much as possible before you actually enter an agreement so that you avoid any disputes in the future. Also, while you are ironing out the details, you may want to do an assessment of the financial health of the outsourcing company by asking them questions about their current financial health and any contingency plan that they have in place.

Start Small to Reduce Risks

How to Successfully Choose an Outsourcing Company
It is probably best to start off small if you are entirely new to outsourcing as you don’t want to get in over your head. Choose an essential function that you would like to outsource and see the results you get from this before going any further. For example, you may want to just start off with a short-term task like some graphic design work to test the water. If you run a small business, you may want to go to another small business where you know you will get some personalised attention rather than one of the big vendors. As we have already talked about, you may also want to look to an agency that works in a particular niche that suits your company.

This guide should have given you a better understanding of what to look for when choosing an outsourcing company, so make sure that you are selective so you have a better chance of a long and beneficial relationship.

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