Outsourcing

Outsourcing is a long-term partnership, not just a supplier relationship. Choosing the right provider is critical to success, so take time to assess potential partners carefully.

Check credentials and track record

Review the provider’s experience and performance. Ask:

• Do they have a strong track record of service commitment?
• Are they recognised in their industry?
• Do they measure customer satisfaction?
• Are they growing and developing?
• How strong are their service level agreements?

Check customer references

Speak to existing customers to understand how the provider performs. Find out:

• who their customers are
• how satisfied they are
• what the provider does well 
• how they handle problems

Choose references similar to your business or industry where possible.

Assess capabilities and resources

Visit the provider, if possible. Check their:

• working environment and staff turnover 
• IT systems and equipment 
• management processes and quality standards 
• ability to innovate and adapt

Review financial stability

Make sure the provider is financially stable. You can:

• review accounts and financial reports 
• request references from banks or credit agencies 
• check if they use subcontractors and assess these too

Consider communication and cultural 

If outsourcing overseas, consider:

• time zone differences
• language barriers
• cultural differences
• exchange rate risks

These factors can affect communication, control and costs.

Check partnership fit and compatibility

Choose a provider that can build a strong working relationship. Look for someone who:

• can manage change
• is flexible and resourceful
• is committed to your goals

Strong relationship management is essential for long-term success. For more best practice advice, see outsourcing: seven top tips.