7 Key Factors to Consider Before Choosing an Outsourcing Company

Posted on September 26, 2015

Before you decide on which outsourcing company to partner with, read about these vital factors that can help you choose a reliable vendor.

Did you know that an outsourcing relationship can have a deep impact on your company’s reputation and bottom line? This is why you must be extremely cautious while making a choice about a prospective offshore vendor.

Here are some factors that you can examine, while selecting an outsourcing company. Considering these factors before choosing a vendor can ensure increased profits, stronger vendor relationships and higher customer satisfaction.

1.The Management Team
Find out as much as possible about who will be leading your offshore team. Check if they have the required exposure and experience to fulfil your requirements. With experienced management staff leading your offshore team, you can be guaranteed of a seamless transition of work and a successful outcome.

2. The Service Level Agreement
The SLA is the most integral document in an outsourcing partnership. Make sure that everything is clearly written out, with no room for confusion on any detail. Ensure that there is no ambiguity about the level of quality required for the services being offered.

3. Pricing
The price is usually the main motivation for outsourcing and hence it is important to avail the best possible price. Check on the vendor’s pricing structure and compare it with price offered by other service providers. Though considering the price is important, it should not be the only deciding factor.

4. The level of flexibility
Evaluate if the vendor you have choose is rigid or flexible in their approach. It is important for the vendor to be flexible enough to understand your concerns and offer possible solutions.

5. Communication
Any service provider should be able to clearly understand what is required and also promptly reply to your queries. The vendor should be competent enough to understand your requirements in clear terms, so that there are no delays in the completion of your project.

6. Trained resources
Find out if the vendor has appropriately qualified and experienced resources who will be competent enough to handle the day-to-day operations of your project efficiently and smoothly.

7. Reliability
Before signing an outsourcing contract, make sure to visit the vendor’s site. Checking on the infrastructure, back-ups for downtime, safeguards and the availability of the staff will give you a fair idea about the reliability of the vendor. Make sure to not completely place your trust on everything that is presented on paper. Personally visit the site to check is everything is also present on the floor.

We hope these key factors can help you in your search for an outsourcing partner.

Do you have any question on outsourcing or queries about how outsourcing works? Let us know by leaving a comment in the box below. The team at Flatworld Solutions will get back to you with an answer.

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5 thoughts on “7 Key Factors to Consider Before Choosing an Outsourcing Company

  1. Rakesh Mohanty

    In addition to these factors, also make research about the company. Go through the business reviews or opinions about the service provider. Check out the social activities and their partners, portfolios before choosing a company. Also with often communication, you can get to know about the service provider and their work. Once you find the service provider is trustworthy for providing accurate services, you can have business with them.

  2. Shruti Arora

    As global trade and IT capabilities accelerate and trade complexities increase with new cross-cultural regulations, it becomes even more imperative that you give great care to selecting a fulfllment partner.

  3. alfonce

    besides the availability of Trained resources, also check the vendor’s financial muscle, whether he will be able to meet the required financial resources in executing the task


    what environmental factors are considered when outsourcing manufacturing operations to a foreign country?

  5. kyle kidd

    Reliability sounds like a huge aspect when it comes to choosing an outsourcing company, so I am very glad that you mentioned that you need to consider it while choosing one. We are going to need an outsourcing company because my brother is needing one to supply the gears for his next project. When we look for one to recommend to him, I will be sure to evaluate their reliability.


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