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How to Choose an Outsource Company

Published by Nanni on Monday, July 23, 2012

Photo credit by cisshadab

Once you have to chosen to outsource some business functions, choosing the right partner company can be the key to success. Whether you are outsourcing payroll, customer service, manufacturing, or order fulfillment, significant research may be needed to find an outsourcing company that is the best fit for your needs. Ideally, outsourcing should save you money by allowing you to focus more resources on core business functions and leaving other tasks to your outsource partner. The most important aspects to consider when choosing an outsourcing partner are reputation and experience, size and communication, and infrastructure and location.

One of the best ways to find a good outsourcing company is through referrals from business acquaintances, friends, trade shows contacts, networking events, or other vendors. You should be able to find other customers of the company who are happy with their work or pick up some positive buzz from business or trade contacts. Be sure your outsource partner has experience that meets your particular needs and future growth. If you are looking for a media relations firm strictly for advertising now, but plan to expand into web sales later, choose an outsource company that can fulfill both those needs as your company grows.

Another important consideration when choosing an outsourcing company is size. You should choose a company that is close in size to your company. Some of the largest established outsource companies may have great reputations and extensive experience, but they will also most likely have large established lists of clients. If you are a smaller newer company, your projects will not be a priority for them. If they have some kind of problem your project will be one of the first ones they drop. You could easily find yourself cut off from resources if they don't need your business. One way to judge a company is by how well they communicate when you approach them. If the communication is prompt and involves some contact with management, it may be a good company for you. If you are being shuffled to lower level workers, you may be better off with a smaller company.

Infrastructure and location are also important considerations. If you have a fairly small company and need to look at smaller outsourcing companies, make sure that they have sufficient infrastructure in place to meet your project needs. You don't want your money paying for their company startup. Also, if you are considering overseas outsourcing, be sure and research the area sufficiently enough to know that it is at least relatively stable. Some outsourcing companies with facilities located in Asia or Latin America, while very affordable, are also very risky in terms of political or economic unrest.

Choosing the right outsourcing company can save considerable time and allow company resources to be focused on core business functions. Outsourcing companies should be evaluated based on factors such as reputation, experience, location, and size. Careful consideration of these and other factors can help you choose the perfect outsourcing company to meet your needs.

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  1. 1 comments: Responses to “ How to Choose an Outsource Company ”

  2. By Saturnino on October 16, 2012 at 1:52 PM

    Also check out their troubleshooting skills. Know how they handle problematic situations from their end. Try to know what they would do if a wrong order was processed. Will they be capable to come up with a solution right away?

    Saturnino Walmsley

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