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How to find a suitable outsourcing vendor

       
Introduction:
 

Finding the right kind of outsourcing vendor is very critical to the success of the company that is outsourcing. The outsourcer should have a clear mind as to what to expect from the vendor. Great care should be taken while engaging a vendor. A few aspects have been described below to guide the outsourcer in his quest for the right vendor.

Define the scope and schedule: 

The outsourcer must also be very forthcoming about the nature of the relationship. The scope of the relationship should be presented before the potential vendor at the very outset so that the potential vendors can make up their mind as to whether they measure up to the expectations of the outsourcer. Again, the time- frame they work together should be mentioned. The expectations should be realistic and achievable.

Listing the potential candidate:

There are two ways to finding the right vendor- first to entrust the task to a consulting firm, second to do it in-house. In the first case, the consulting firm would draw up a list of potential candidates keeping in mind the expectations, needs and suitability of the outsourcer. The list would then be provided to the client for the final decision. In the second case, the outsourcer will have to form a team of people who will select the right candidate. This they can do by using the search engines .They can use the online directories for this purpose. They can draw up a list of potential vendors and get down to the task of evaluating each of them.

Check the references of the potential vendors:

It is often difficult for the team to make up its mind as to who suits them best. Therefore, they can ask the potential vendors to provide them references of the clients they have previously served. They can get in touch with those clients and get feedbacks.

Expertise, technical skill and Experience:

These attributes need to be carefully looked into. Whether the vendor possess the necessary expertise backed by technical skill to deliver is critical to a successful relation between the vendor and the client. Having adequate experience should also work in favor of appointing a vendor.

Pricing factor:

Many times the client would favor a particular vendor because of the low price offered by it and later regret it. While cost effectiveness is certainly the end of outsourcing, there are factors like client satisfaction and good service that have to be considered. There has to be a balance between quality service and pricing. Training cost should be considered.

Other factors:

Cultural differences have to be understood especially in case of offshore outsourcing which will influence the work environment of the server. The political setup of vendor's country has to stable and friendly. Then there are legal (Including labor law) and tax-related factors while considering selecting the off shore service provider. Geographically, too it is better if the server is accessible. The best example is of India which is has a sizable English- speaking population, a stable political background, and the technical knowledge .Also working in India's favor is the time zone.

Great discretionary skill is required to decide as to who is ultimately be the vendor. It is advisable to ask the potential vendors to do a small test project. Asking questions and seeking clarifications can go along way in sorting out issues that may come in the way. In addition, it is advisable to start working on a small project and only continue if the vendor has delivered to the client's satisfaction.

 
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