6 Steps to Choose the Right Outsourcing Vendor for Your Business

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Most businesses have resorted to outsourcing certain aspects of their business owing to the reduced cost and higher skill set being available from many parts of the world. This makes it a strategic decision which can only bear its fruit if performed carefully after a series of analysis. Choosing the wrong outsourcing business vendor can lead to a series of mishaps which would do no good for the company. Hence, it is important to be resourceful while considering an outsourcing vendor.

Here is a compiled list of issues that have to be looked into before the partnership is finalized.

1- Lay down the exact requirements

The foremost step in this sequence would be to make a list of the exact specifications, i.e. the tasks you want to outsource and what you would require of the vendor. The type of work you require, the long term benefits in terms of cost and skill, the expansion of your business in certain domains are just some of the many dimensions to be considered. Making a list of the exact goals that you will want to achieve through such an outsourcing project is critical to ensure that you are clear on what you want. This will make the further steps easier due to your certainty for both parties.

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2- Research the process

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This is now the most critical process wherein a vendor is made to stand out for their reputation and previous work done. In this step, a complete research on their work experience, past history with clients, their present client base and their domain of specialization is done thoroughly. In order to make sure that you are selecting the right outsourcing partner, the vendors can also be asked questions by contacting them for an even clearer picture of the service that they supply. All aspects are to be considered to make sure that their policies align in line with the interest of your business with respect to whether the domain is IT, BPO (Business Process Outsourcing) or Revenue cycle management companies.

3- Ask  for work samples

There is no better way to judge a business than by going through their work sample. The work would be designed to focus on the areas that they think are critical in order to showcase the performance and importance of the vendor company. Further, the work that they furnish would give a clearer view on the procedures that they follow and the response that would be serviced in the future. This makes a work sample an important judging parameter to deal with. Also look into references and make sure that they have a clear reputation.

4- Inquire about certifications and infrastructure

When making an important decision wherein you are taking a huge step, it does seem vital that you are partnering with some of the best of the lot. After selecting vendors based on reputation and work samples, look into the certifications that they have, based on the service you are looking for. Accreditation like that from Microsoft, ISO certifications etc. are good to base your decision upon. Further, the infrastructure of the vendor in terms of their network and their IT deployment are also to be checked into.

5- Request proposals for contract

The vendors who seem suitable can be asked to furnish a request for proposal. This is the step wherein both the parties get to know each other on a deep level regarding areas like the business model, future plans, scope of work and the skill set that is to be furnished for a successful partnership. With this a clear contract idea can be summarized and the business can easily choose the vendors with the better proposals for further confirmation.

6- Finalize the agreement

Based on the extensive research process which finally yields a winner, a contract has to be drawn. This is one of the critical steps to ensure that both the parties agree on the major terms of the contract and on where they stand regarding the business model. Things to be included are the minimum overlap time, point of query, long term vision, steps to be taken during certain disagreements, expected commitment, team size and the vital aspect of cost. Not paying attention to this particular step may have consequences in the future if things do not go exactly as planned.


Outsourcing your business operations is quite a large leap which has to be taken with care. Entrusting the responsibility with the right vendor simplifies the process to a great extent and will ensure better expansion of your business under them.

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