How to Select Vendors for Outsourcing ? Top 6 tips

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Companies of all sizes are now looking forward to outsourcing. Outsourcing as many parts associated with. There are many steps involved, but one of the most important steps is about selecting the right type of outsourcing vendor. Wrong decision in this part will obviate the effort that goes into making other plans associated with outsourcing. If you are going to try outsourcing for the first time, then choosing becomes even more difficult, because of so many vendors having almost same types of offerings. So, here we will outline some of the key steps which you should follow while selecting the outsourcing vendor.
1. Put together a team
First step would be to take the selection process very seriously, and put together a team of employees from different sections of the company. This would logically consist of departments which will be directly be affected by the outsourcing project, legal team and HR personnel. Having a mixed team would help the company assess all sorts of risks.
2. Be clear on the objective
What do you really want to achieve from the project? Lowering the costs? Increasing the efficiency? Or trying to reach a new market. The team, especially, should be clear on this, because different sorts of vendors would offer different types of overall impacts.
3. Assess the vendor Market
Find out the outsourcing vendors who specialize in the type of work which you need, and then start contacting them requesting information. Your team should prepare a basic set of questions which should be asked to each of the vendors. One should note that this shouldn’t the vendors shouldn’t be asked to give a formal proposal, because it will take longer time and will also contain information which isn’t really needed.
4. Shortlist vendors and request for formal quotes
Once you have got some information on what different vendors have in offering, the team should start requesting the shortlisted outsourcing vendors for a formal quote for their services. So, all you have to do is wait and evaluate which of the proposals best suite your outsourcing needs.
5. Confirming details and visiting Vendor’s on site
Never sign the final deal without actually visiting the vendor on their site. This will help you confirm the sort of details that they have put into their proposals and also assess whether they have a synced culture between the upper management and the actual engineers who will implement outsourcing.
6. Start with a smaller project
The actual efficacy of the vendor wouldn’t be really confirmed until they actually execute a project. Hence, start with a smaller part of the outsourcing project. This would help you establish the initial coordination and other details straight. There might be smaller issues which were overlooked in the initial deal, could be included or edited if found necessary. All in all, this would prove to be a safe probe into the outsourcing project.

Outsourcing can be a really good decision, if you choose your vendor well. Not only can the wrong type of ruin your project, it may also ruin your reputation in some situations, because they in a way represent you in certain aspects. During the actual selection process, the overall pressure from the vendors’ sales reps can be enormous. Signing off a deal in a hurry would only cause all the initial investment in vendor selection to go in vain. Be very patient while evaluating the prospects. Choose well!

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