Today’s businesses are well in tune with the advantages of outsourcing. Controlling and reducing costs, being able to focus on core operations, and solving capacity issues are the main reasons why companies consider paying for external talent, according to Deloitte’s 2016 Global Outsourcing Survey. 

Improving service quality, gaining access to skills, and facilitating organizational transformation also made the list. These are all compelling reasons to outsource. But being able to access a global workforce comes at a cost, which is figuring out who exactly to work with.  

Opting for an outsourcing company is a good start, as this already brings a certain degree of service quality and reliability into the picture. To further narrow down your search and find the right partner, use the following checklist for choosing an outsourcing company. 

Cultural Compatibility

If cutting costs forms part of your reason for outsourcing, chances are that you’ll be looking abroad. This has its benefits, but it’s important to remember that your potential partner might be operating under a corporate and societal structure unlike your own. Reviewing their hiring policies and processes can help you get a better idea of what to expect. 

Consider whether your partner has the knowledge, discipline, and soft skills your business requires. This is especially important in areas such as customer service. The outsourcing company should understand the values, beliefs, and quality standards upheld by your employees. In doing so, you can foster a more productive relationship. 

Feedback

Ideally, you want to work with a company that puts the time and effort into measuring their performance, informing you about it, and seeking ways to improve. Your partner should value the process of setting numerous KPIs (Key Performance Indicators) and regularly providing feedback on their success – not just when a certain goal is achieved. 

The level of effort that they put into doing this speaks for the transparency of the company and how proud they are of their work. If it doesn’t seem like you’re going to hear from them until something goes horribly wrong, then you’re probably better off looking elsewhere. 

Industry Experience

The more experience your partner has with businesses in your industry, the more likely they are to avoid the mistakes that newer outsourcing companies are yet to learn from. It can mean the difference between efficient communication and receiving a never-ending stream of questions that your partner should already know the answers to.

You can gauge their industry experience by looking into their portfolio. This is also a useful way to get a better idea of the quality of their work and the type of businesses they’ve worked with in the past. Of course, a portfolio doesn’t always tell the full story, so it’s a good idea to contact the company and ask some questions. 

In a similar vein, the people they hire should display relevant qualifications and experience. It’s better to avoid the jack-of-all-trades and master of none, opting for a team that specializes in your specific industry instead.

Technical Expertise

Is the company always looking for the latest technology to improve their output, or are they stuck in the past? Your ideal outsourcing partner should have a solid set of tools for managing workers, tracking performance, staying in touch, and resolving issues so that you have a better idea of how quickly and effectively your needs will be met. 

One way this shows itself is the company’s willingness to tailor their services to your specific business. For instance, they might be able to make use of automation tools or analytics to improve your efficiency. How interested they are in not only moving themselves forward but also your own business, speaks for the level of dedication you can expect.

Communication

Your future outsourcing partner’s approach to communication can make-or-break your relationship with them. Ensure that they’re skilled with and available to use all of the channels you require, be it email, phone, or any other messaging application. Time zone hours should be considered to minimize any gaps. 

It’s also a good idea to agree on a single channel for exchanging feedback, queries, and concerns. You can gauge their level of effort by making a call or sending an email. How soon do they reply? Are they genuinely interested in meeting your unique needs, or do they just want to make a sale? Be sure to pay attention to these factors moving forward.

Trust

While not always easy to determine, it’s worth looking into whether your future outsourcing partner is a stable and solvent company. They should be there for as long as you need them such as to avoid situations where their services are suddenly unavailable, which can otherwise cause hiccups in your own business. 

This is especially important if you’re going to have to entrust your partner with sensitive information. Look into the legalities of your relationship, which can include insurance, liability, contractual obligations, and nondisclosure agreements. Peace of mind knowing that your partner is going to play by the rules can save you a great deal of trouble. 

Another aspect to consider here is the company’s ability to hire new workers when you need them. You want to work with a partner who can meet the demands of your business as it grows. 

Costs

Another area where your partner should be as transparent as possible is the fees they charge for their services. Fixed project costs can go a long way in helping you budget and will inevitably prove more affordable than hourly rates. You should be able to receive all of this information upfront. Hidden fees are a red flag. 

Don’t forget to conduct market research before settling on a specific company. Low prices usually mean low quality, but you don’t want to be overpaying for something either. Working with an overseas partner is usually more cost-effective, however, and comes with potential benefits, such as time zone differences that allow you to get work done overnight.

Of course, this depends on your specific needs. Outsourcing your customer support to a country that’s awake when yours is sleeping probably won’t solve many problems. On the other hand, being able to wake up and see all your accounting work up-to-date for the day ahead is a good start. 

Finally, an outsourcing partner that can provide some sort of guarantee related to the quality of their work is often a better choice. In the same way a good laptop manufacturer will provide a hardware warranty to protect your device against any malfunctions, a good outsourcing company will be able to replace any underperforming workers. 

Keeping the above points in mind will go a long way in helping you choose the best outsourcing company for your business. Your due diligence in making this decision will certainly pay off.