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Ten Precautions while outsourcing

Precautions need to be taken while outsourcing work due to various reasons like money, time, availability of manpower etc. There are many risks involved during process of outsourcing and thus it is imperative to choose the right service provider. The outsourcer should be honest and efficient with good communication skills. This is not a big and difficult task and all one has to to do is ask the right questions. Below are some of the pointers that one should keep in mind while choosing an outsourcing company:


1. Do your homework properly. Find out for how many years the company has been outsourcing. Get adequate information on the company as to the strength of the company and their financial situation.


2. Find out about the quality of the services provided by them e.g. whether they have an ISO and CMM certifications. Customer reference and recommendation are the best way to figure out a company's services.


3. Before you finalize the outsourcing company it is pertinent for you to take into consideration all the hidden costs from maintenance, training,connectivity/infrastructure, transition etc. instead of just the obvious costs such as licensing and consulting costs.


4. Ensure that the company does not make unrealistic promises and keeps them.


5. The outsourcing company should meet requirements in respect to data privacy including infrastructure security (Firewalls, Access Controls, Data Encryption, etc) and human resource related like Pre-Recruitment precautions and checks, Non-Disclosure agreements, etc.)


6. Ensure that the company offers business continuity and disaster mitigation plans as a means of reducing your business related risks.


7. Companies have to be honest when dealing with invoicing and material type of contract. Always check for referrals of customer for ensuring that the company is honest in financial dealings.


8. Ensure that the company chosen for outsource work is compliant with statutory laws.


9. The company chosen should match work culture and ethics. This will help offshorer in carrying out smooth communication with the company.


10. Ensure that the chosen company has a well trained professionals on their staff and good capacity to handle the work.


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