Certainly, if the business world had its own Halloween traditions, a costume of a bad outsourcing vendor would be a hit. Still, it’s not October 31 yet, so let’s continue with a good part of the story. We want to offer you a few tips on selecting an outsourcing provider who will ensure the success of your business! No trick or treats. Just good partnership and met expectations.
1) Know what you outsource
You likely began your search for an outsourcing provider because you believe something is lacking in your business: talent, expertise, or certain business activities. You won’t be able to find a good match by recognizing your gap alone. It is important to clearly specify what you expect from your future outsourcer. Even with a good vendor, you will get a poor result without vision. Think about it: what will your vendor have to do? Simply implement several add-ons? Create a brand new website from scratch? Test some features? Or just provide tech specialists for you to manage on your side?
2) Check the relevance of their expertise
Check out the information provided on the websites of outsourcing vendors. They usually describe what they do, how they do it, and who will be doing it. At least you will know if a vendor is familiar with the industry you require expertise in and at what level they deliver their services. Example: You need to create an E-Commerce project. The potential vendor only has expertise in developing mobile games. It’s, therefore, better to consider another option with more relevant subject domain expertise.
3) Monitor reviews and testimonials
Having narrowed down your list of potential companies, you need to verify how well they performed during their previous or current partnerships. Be sure to choose reviewing resources that verify the clients and do not allow testimonials to be edited. These websites include Clutch, Goodfirms, Upwork, FeaturedCustomers,
In addition to the feedback from clients, you can also see how the workplace is doing by visiting employee review websites, like Dou for Ukrainian companies.
4) Check cases and long-term partnerships
Most outsourcing companies are willing to show the case studies of projects they have completed and how they achieved results. For you, this is an invaluable resource for learning how their processes work. Case studies usually outline the client’s challenges, the vendor’s solutions, the technologies used, and the timeline of the project.
Also, it’s a good omen if a majority of case studies show long-term partnerships. It is clear that the outsourcer is trustworthy when the client refers the vendor for different services again and again.
5) Research the turnover of employees
Poor work conditions, unfair compensation, and stagnation of HR processes undermine employee motivation and morale. Consequently, they either switch jobs, causing high turnover or stay and underperform. Not only it will be detrimental for your business, by choosing such an outsourcing vendor you will support unfair labor practices.
Mature outsourcing vendors not only provide fair wages, but also include benefits like sick leaves, vacation leaves, paid education (English lessons, courses, internships), well-established human resources processes, conflict resolution practices, and fair working hours.
6) Scan for the use of outdated technologies
Outdated technologies, programming languages, frameworks, and tools are a highway to obsolescence. Make sure your future vendor uses best practices, newest versions, and is not afraid to innovate. If you yourself do not have relevant experience to make judgments about the tech expertise of outsourcers, hire a tech expert on your side to at least help you make a choice.
7) Make calls or visit the facility (when the pandemic’s over)
As you have made significant research and narrowed down your list to several options, it’s time to actually communicate with the vendors. Of course, the best solution would be to visit their office and see for yourself how the company operates and in what conditions employees are working. Also, face-to-face meetings tend to be more productive as they involve more non-verbal interaction.
Unfortunately, we are still in the mids of pandemics. So, schedule a call and talk to the company’s leadership board and tech specialists. Make sure to ask questions to verify your research. If you feel uncomfortable sharing your business information, request signing an NDA (Non-Disclosure Agreement).
8) Request a proposal
Often, words do not suffice to determine if the company can deliver the results you need. Ask them to create a proposal that showcases how they will solve your problem, what tech stack they propose to use, as well as what the project costs and timeframe is. Even though those are just suggestions and predictions, the proposal is a great way to start. There is no problem in furtherly negotiating terms that are agreeable to both you and your vendor. First, you need to know if it’s even worth a shot.