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recautions while outsourcing

Due to various reasons like time, money, availability of manpower etc most of the companies are outsourcing their work. There are many risks involved during outsourcing and hence it is imperative to choose the right service provider. The outsourcer should be honest, efficient with good communication skills. This is not a Herculean task. All you have to do is ask the right questions.

Below are some of the points that you should keep in mind while looking for an outsourcing company:

  1. Do your homework. Find out how many years the company has been outsourcing. Get as much information as possible on the company as to the strength of the company, their financial situation etc.
  2. Find out about the quality of their services. For e.g. whether they have an ISO and CMM certifications. Customer reference is the best way to figure out a company’s services.
  3. Before you finalize the outsourcing company it is necessary for you to take into consideration all the hidden costs from maintenance, connectivity/infrastructure, training, transition etc. instead of just the obvious costs such as licensing and consulting costs.
  4. See that the company makes realistic promises and keeps them.
  5. The outsourcing company should meet your requirements with respect to data privacy including infrastructure security (Firewalls, Access Controls, Data Encryption, etc) and human resource related (Pre-Recruitment checks, Non-Disclosure agreements, etc.)
  6. Make sure the company offers business continuity, disaster mitigation plans as a means of reducing your business related risks.
  7. Companies have to be honest and just when dealing with invoicing specifically in time and material type of contract. Always check for customer reference to make sure the company is honest in financial dealings.
  8. A customer is morally responsible for any illegal doings of their vendor. Ensure that the company you have chosen to outsource your work is compliant with statutory laws.
  9. The company you choose should match your work culture and ethics. This will help you in carrying out smooth communication with the company.
  10. Ensure that they have well trained professionals on their staff and good capacity to handle the work.

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