Top 6 Things to Consider In Choosing an Outsourcing Partner
With growing competition and the fast-changing dynamics in business, outsourcing is becoming increasingly significant these days. It not only helps businesses focus on their growth but also boosts their competitive advantage and profitability.
Like any other selection process or decision-making activity, there are various factors that influence the choice of finding the right outsourcing partner for your business. Here are some key factors to keep in mind:
1. The Quality of Resources
One of the foremost things to consider in selecting an outsourcing service provider is the quality and skill level of the human resources you will be provided. These professionals must have the expertise to carry out the duties and responsibilities of the role your business requires. Before deciding, make sure the outsourcing company can provide the following for certain:
- Availability of qualified and skilled professionals
- Good work ethic of employees
- Track record of solid experience in similar projects by the company and workers
- A reputation for reliability and customer-oriented service
2. The State of the Nation
This factor encompasses the stability of the government and national economy, and the availability of communication and transport infrastructure, production facilities and necessary utilities such as electricity and water as part of the decision to hire an outsourcing partner. If a country is well-developed with proper infrastructure, the service providers will be in a better position to serve their employers and clients.
The Philippines is touted as among the world’s outsourcing powerhouses due to the availability of infrastructure, economic growth, abundance of skilled and highly educated professionals, and the array of business process outsourcing (BPO) service providers.
“The Philippine economy is poised to grow at 6.4 percent in 2019 and 6.5 percent in 2020 and 2021, according to the Philippines Economic Update by the World Bank. On another note, “experts predict that by 2022, Filipino BPO services will cover 15 percent of the total global outsourcing market. The industry is also expected to grow 9% annually for the next five years,” according to Time Doctor.
3. Intellectual Property Rights and Patents
It is very important for an outsourcing vendor to understand and comply with your patents and intellectual property rights. If a country does not have laws and regulations governing and protecting confidentiality and intellectual property, it could render your information unsecure and may lead to the loss of your valuable company data. Before selecting a service provider, make sure they sign the confidentiality agreements and are ready to comply with your standards and regulations.
4. Efficient and Effective Communication
We all know that business requires effective and efficient communication and coordination. If your outsourcing partner is at a location far away, communication can be difficult. You need to assess the service provider’s communication facilities and capabilities to ensure that constant contact with the vendor is possible.
Another communication-related factor is language. Select a company that is proficient in your language. If English is your required language, you might want to consider outsourcing to the Philippines, which is the third-largest English-speaking country in the world based on population.
5. Costs and Expenses
One key objective of outsourcing is to reduce production expenses. With many companies offering similar services, the cost to outsource has become highly competitive. Before deciding on a provider to employ, make sure you obtain quotations from several vendors and compare their offerings. Some vendors provide cost comparisons for a variety of skills.
6. Company Culture and Management
As part of the selection process, find out about the company’s culture and its marketing and management practices. Look out for winning characteristics like motivated employees, hard work, ethical values, and flexibility in teamwork. Also search for references designed to help guide you as you ease your way into the world of outsourcing.
Look Out for Micro and Macro Factors
These are just some key considerations to keep in mind when choosing a good outsourcing partner. Favorable macro-environmental factors are necessary for business entities to work with long-term stability and growth. So don’t just lookout for a good vendor but also a good country where your business has a brighter and more long-term future potential.
Selecting the Right Outsourcing Partner
At some point on its success journey, your organization may need an efficient outsourcing partner. However, you may be faced with the more challenging task of selecting the appropriate outsourcing partner as a result of this increasing proliferation of outsourcing companies. The challenge of what and how to outsource is becoming less significant than the one of which vendor to outsource.
At Yempo, we can customize your outsourcing journey to meet your needs. Contact us to discuss how you can get started.