Why OutSource

Your one stop guide to the World of OutSourcing

How to Hire a Firm For Outsourcing

Posted on | July 4, 2010 | 2 Comments

To make or to buy has been the most difficult and daunting questions for most businesses across the world. The strategy of every business depends on cost effectiveness and business process effectiveness & efficiency. Companies wanting to outsource need to make an informed decision based on the right reasons. Once that decision is made, the next challenge is choosing the right vendor. There could be many factors beyond pricing that may affect your choice.

The success of outsourcing depends largely on you manage the process before and after choosing a vendor and signing the contract. Earlier companies used to hire firms blindly based on the lowest price quoted. But through the years companies have realised that this definitely does not ensure smooth transition and functioning of their businesses. So here are few things to keep in mind:

Establishing business objectives & Risk evaluation- Before choosing a vendor it is imperative to establish your own objectives for outsourcing your processes. You need to look for a vendor who is in sync with your business objectives and strategies. Remember that you need to look for a vendor who has similar interests and objectives as your own business. This partnership should be a win-win situation for both the buyer and the vendor. Every business works on its own set of metrics. For example, for outsourcing front-end customer services to vendors, companies would consider risks revolving around information & data security and customer satisfaction. Hence companies would generally include provisions for incentives and penalties around these metrics. They may also monitor service levels by conducting regular checks like mystery shopping, skill evaluation tests, site visits and certifications. You as the buyer need to make your own risk profile before you test the outsourcing waters. Gaps in transition of businesses to a vendor may make the whole exercise of outsourcing absolutely futile.

Examine the vendor’s portfolio & Evaluate their competency- Once a risk profile is in place, companies can now be sure of their outsourcing objectives and expectations. While looking for a vendor, companies need to understand that the best players in the business may not necessarily meet their objectives. You of course need to look for a vendor of repute, however, make sure a healthy and successful partnership can be worked out. A lot can be said about a vendor based on their clients. Besides, you need to look for a vendor who has the level of infrastructure and first-hand knowledge of processes that you are looking to outsource. For example, big outsourcing BPOs in India such as GE, WNS, Genpact, IBM Daksh, TCS, Firstsource etc have robust infrastructural capabilities and have a history of working with some very big names in every vertical ( IT, finance, banking, insurance, healthcare etc). BPO vendors who have been in the industry for long have well laid out plans and strategies for their buyers. You can also look for any international certifications that the vendors may have to validate their capabilities. Some BPOs also follow best practices in the industry which may help you as a buyer incorporate some of them to help make your business processes better. Ensuring that the vendor is financially in good shape is another way to make sure that you are headed the right way.

Pricing- The buyers of BPO services are spoilt for choice. Apart from some of the traditional IT and BPO hubs like India and China, there are some fledgling hubs in Africa, Philippines and South America, that are offering competitive rates and services. You need to be mindful of the fact that cheap may not always be good. Communication here is the key. Buyers need to communicate exactly what they are looking for in terms of services and infrastructure to the vendors. This of course helps vendors understand the standards expected and the goals thereof. Also it helps them evaluate their ongoing and future costs to meet the buyers’ demands.

After sales service- What happens after a vendor has been chosen and the contract signed? A buyer needs to make sure that a continuous channel of communication is maintained with the vendor. The vendor should send across status updates before, during and after the implementation so that you can change and monitor the functioning of your processes. The vendor should also test the effectiveness of the transition and iron out any teething problems the process may face. This may be an important point to consider in deciding whether your vendor should be in your own country or elsewhere. Some companies are increasingly favouring companies that are near shore as it helps them keep track effectively.

Companies that are looking to outsource are looking for a catalyst for changing their existing product and process strategies. You need to make sure that the vendor you choose needs to help you bring about that change. Whether it is cost saving, product development and enhancement, scalability and time management, access to talent or operational expertise; the vendor must fulfil your objectives by building a successful partnership with your company. To experience the benefits of outsourcing you will need to make an informed choice in choosing a firm to outsource.

Posted by:- Doug Peters,
Contact him: – doug.peters@quotebean.co.uk,
To read more articles on BPO and other Business Services by Doug Peters
Click Here: – “BPO Related Articles”
And to Get free Quotes and Advise for BPO and other Business Services from Top UK Suppliers Feel free to contact us “Quotes & Advise”.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay
Category: Outsourcing

Top Sites

  • Capture YouTube Videos
  • Convert YouTube
  • County Felony Records
  • Free Article Spinner
  • IT Services Dallas

    • Comments

    2 Responses to “How to Hire a Firm For Outsourcing”

    1. Karen Cayamanda
      August 21st, 2010 @ 12:38 am

      To make or buy is a decision to make, choosing the right vendor is another thing. We should carefully choose the right BPO firm whom we will trust part of our process. Their values and interest should align with that of your business so everything will go smoothly.

    2. palgunanda
      August 30th, 2010 @ 11:36 am

      you have good work to post article in outsource, i thanks for you visitting at my blog and i have been put your links in my blog likes what you want in several monts ago. I hope you to do so, thanks.

    Leave a Reply





    Subscribe to our feed

    Blogroll