Outsourcing is not a new business practice; in fact, it has become one of the key trends in corporate strategy over the last couple of decades. At its current pace, this business trend shows little sign of slowing down.
From 2014 to 2016, the IT-BPO space signed a total of 1077 outsourcing contracts valued at $115 billion. Of the three years, 2015 showed to be the strongest year for outsourcing, wherein a record of 451 contracts worth around $5 million were signed during the second quarter. Meanwhile, 2014 and 2016 had similar levels of activity.
There should be no question that outsourcing actually works. Most Fortune 500 companies would agree, as 94% of them outsource at least one major business function.
However, as this industry gets bigger, more and more outsourcing companies are sprouting up. Before you decide to outsource some tasks to a third-party, there are some important questions that you should ask to make sure that you are working with the right service provider.
- Do you have a proven track record of service delivery and excellence? Evaluate a potential outsourcing partner based on the level of satisfaction that they bring to existing and previous clients. This would be easier if you can gain access to testimonials or feedback given by the company’s customers. If possible, request for a customer list and speak to a couple of them to know about the quality of services that the outsourcing company delivers.
- Do you have (or have had) other customers in my niche or industry? It is a huge plus if the potential outsourcing partner has successfully handled projects for clients in your niche because this means that the company already has a decent level of understanding about your business.
- How experienced and reliable are your personnel? Since the employees of your potential partner will be working for you soon, it is necessary for you to ensure that their personnel are reliable and skilled in their respective crafts. Ask about how long they’ve been working in the industry and their key competencies.
- How do you plan on handling the project? The company should be committed to tailoring their services to your business needs. They should show a good level of flexibility to make sure that all your requirements will be accommodated.
- What are the data security measures that you employ? As mentioned earlier, one of the primary issues faced by businesses that outsource is data security. With this, it is important to ask your potential partner beforehand for a detailed description of how they keep data secure and confidential. Additionally, ask the outsourcing company about their recovery plan in the event of a security breach.
- What is your pricing scheme for your services? Being aware of the pricing of their services is just as important as knowing about the quality of services that they provide. This will help you set your budget and enable you to weigh if it is worth your money.
As trends shift, outsourcing has had a significant impact on the business world—and it will continue to do so in the years to come. So it’s either you adapt or completely miss out on the significant benefits that can be realized by your business.
However, for you to get the most out of outsourcing, the trick is to find and work with the right company. Direct Sourcing Solutions is a fast-growing global company that is passionate about providing services tailored specifically to each client’s business needs.
Pass the time-consuming non-core activities on to us, so you can focus on your core development. With our interdisciplinary approach and highly skilled professionals, we can deliver great results and help you maximise your business growth.
Reach out to us today and see Outsourcing done beautifully!