C-Suite Agenda

6 Factors to Consider When Outsourcing a Part of Your Business

Smiling Female Business Team

There are many competitors out there who are waiting on the sidelines to grab all your clients. If you’re feeling overwhelmed and understaffed, then you need to consider outsourcing a part of your business. Any industry can outsource depending on their needs. Some outsource their customer service, others their IT support, and some of their shipping department.

Here are six key factors that you must first examine and evaluate when you’re looking to outsource. Consider these before you make a final decision as this decision has the ability to boost your profits, improve your customer relations, and maximize your daily operations. Read on below to see what they are:

  1. Get to Know the Management Team
    Do your due diligence and research about who will be leading the outsource team with whom you will delegate certain tasks. You have to determine if they have the right experience to meet your needs. An experienced management team leading your outsourced personnel can ensure quality work and a successful outcome for your business.
  2. Scrutinize the SLA
    The SLA or Service Legal Agreement is the most important contract in your outsourcing partnership. You have to read this, and all the fine print to ensure that your expectations are outlined. This ensures that there are no ambiguous stipulations, so there will be no room for confusion. You have to make sure everything is in black and white regarding the service you have paid for.

    Business Team Meeting

  3. Pricing
    Of course, any businessman would want the best value for money. This is not the only consideration when you’re deciding, but it helps to know what the exact figure is upfront so you won’t get surprised when billing is sent. Make sure that you compare various vendors’ pricing, so you can get a glimpse of the whole picture before you make your final choice.
  4. Check the Company’s Flexibility
    The last thing you want is a rigid vendor as things always crop up unexpectedly in business. You want a reliable company that is willing to adjust to your concerns. You want a partner who can offer possible solutions should you experience any issues.

    Office Team

  5. Consider Communication
    Your service provider must be prompt and diligent in replying to all your questions. Communication is key to any business. If there is a breakdown in communication chances are there will be delays in your project.
  6. Inspect their Site
    Before you sign off on anything, you have to visit the site of your vendor. Check their infrastructure, staff members, their safeguards, and more. What is their protocol for emergency situations? Do they have back-ups in case there is the downtime? If you can, personally visit to check what is on their floor to ensure that your candidate is indeed a reliable company.

Before you put down a huge chunk of your money on an outsourcing company, you have to make sure that you have chosen a reliable vendor to partner with. Your outsourcing relationship will have a tremendous impact on your company’s productivity, profitability, and bottom line. Thus, you must be very wary and cautious in the process of choosing an offshore vendor to help a part of your business. Choosing the right one can boost your business but picking the wrong one can speed up its demise. Thus, be very careful about who you partner up with.

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Emma London

Emma London

Associate Editor
Emma London is the Associate Editor at CEOWORLD magazine. She covers lists, rankings, economy, geopolitics, global banking, fintech, digitization of money, and the future of finance for CEOWORLD magazine. She’s also a member of the Board of Directors at the Global Business Policy Institute. Prior to that, Emma was the ultra-high net worth (UHNW) valuations subject matter expert at CEOWORLD magazine, mentoring research teams in valuations’ techniques, and was involved in product development for ultra high net worth (UHNW) and high net worth (HNW) dossier creation, currently heading research operations at the Global Business Policy Institute. She can be reached on email emma-london@ceoworld.biz. You can follow her on Twitter at @ceoworld.