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How to Start Outsourcing?

How to Begin Outsourcing? Great Outsourcing Tips to Start Outsourcing!

Outsourcing is always advantageous if done correctly. The benefits of outsourcing are both immediate and long term and include cost cutting, increased profits, access to specialised workforce, on time project completion and delivery, access to new markets and so on. But the first step towards a great outsourcing venture is to start out right. Here we detail the tips and precautions to take while outsourcing your first project or business.

Some Great Outsourcing Tips:

  • Plan out your outsourcing business objective, whether to cut costs, increase revenue or gain an edge over the competition.
  • Identify all your non-core functions and other functions that need specialised delivery model and thus need to be outsourced.
  • Scourge for the ideal location (city, country) to outsource your business project taking into consideration various factors like costs, customers, transportation, workforce, skills, monetary and non-monetary incentives and so on.
  • After you have decided the activity and the location to outsource, fix a definite schedule and deadline to finish the outsourcing work. This is imperative as early outsourcing can lead to early results.
  • Search for multiple service providers to outsource your work to before deciding on any one of them. It is also a good idea outsource small projects to more than one vendor initially to be doubly safe or if you can't decide on only one service provider. Remember the vendor offering the least or the highest cost may not necessarily be the most ideal one too.
  • Before the actual outsourcing work begins do get all the outsourcing agreements scanned and whetted by your legal team to identify and fix any discrepancy in the outsourcing agreement you enter into with the service provider.

Verifying your Outsourcing vendor's credentials:

Before you narrow down on your overseas or domestic outsourcing partner, these short and quick questions will go a long way in selecting the right service provider and ensuring you are not taken for a ride along the way.

Can the vendor actually deliver on the promises?

Many time outsourcing service providers promise the sky in terms of the number of services offered and their past experience and expertise but deliver practically nothing, resulting in time cost overruns. To avoid such scenarios it is best to verify all the vendor claims directly and from the service provider's other and previous clients.

Check out the infrastructure

Ensure that the outsourcing vendor has the requisite infrastructure including high speed internet connection, telephone links, power back-up (especially if located in a remote location), computers with required hardware and licensed software and so on. These factors are important because they can either add to the speed of the projects undertaken or act as bottlenecks in the project completion if not adequate.

Security is Paramount:

When dealing with sensitive information and especially when the information is outsourced to a third party it is essential that your data is well protected through security personnel, video cameras, firewalls, VPN's, data backup, confidentiality agreements and so on.

Their customer track record

A company's customers are one of the best indicators of its profile. Ask the vendors customers whether they were happy and satisfied from their past experience with the company or not. If yes then even a few shortcomings on other benchmarks can be excused.

 
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