26 Tips for Successful Outsourcing

Posted on July 12, 2012

You have heard and read a lot about outsourcing. To leverage the benefits of outsourcing, you have prepared your company for the transition and found a reliable outsourcing service provider. Now, all that’s left to do is to start outsourcing. Keep the following tips on your list to help make your outsourcing experience seamless and successful.
Get in to an agreement with the service provider

One of the most important things in outsourcing is to make sure that you and your vendor are on the same page, with no hidden surprises. Make sure you and your service provider come into an agreement with the following:

1. Make an outsourcing contract with the service provider

2. Ensure that you agree on the payment terms right at the beginning

3. Don’t pay the full amount until the entire work is completed

4. State clearly about how and when you plan to pay the vendor

5. Agree on the deadline for the assigned work

6. Include a Non-Disclosure clause in the outsourcing contract

7. Decide about how you want to receive project updates

8. Share your confidentiality and privacy expectations

9. Include a provision for the vendor to fix potential problems for a specific period of time after the completion of the work

10. Ask for the ownership of project to be given in writing

Protect Your Business

When you outsource, you are giving up some of your control over the project. Consider these tips to help you protect your business, interests and reputation:

11.Ask and check for references

12. Review and evaluate the service provider’s portfolio

13.Verify the skill sets of the vendor

14. Outsource a small test project at the beginning

15. Prepare your employees to review work sent from the vendor

16. Be upfront and clear about your expectations

17. Don’t leave out any details when making the project request to the vendor

18. Make sure that all your work requests are only sent in writing

19. Schedule a kick-off call and regular meetings, if need be’

20. Be available for the vendor throughout the course of the project’

21. Ensure that you track all the payments in your books

Maintain a good vendor relationship

Here are some ways to help you enjoy an amicable relationship with your service provider:

22. Ensure that there are no communication gaps between you and the vendor

23. Appreciate and praise the vendor for their good work

24. Don’t fail to notice the significance of complementary personalities

25. Respect the vendor’s time and preferences

26. After the completion of the work, ask the vendor how it went for them and to provide you with feedback

When outsourcing is a success, it will help you focus on core business functions, expand your business and satisfy your customers.

Have your past outsourcing experiences been successful? What other tips have you personally used and found to be effective?


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