How to Evaluate an Offshore Outsourcing Vendor
Deciding to outsource some or all of your company's work to an offshore vendor can be a rewarding decision if you carefully evaluate the potential vendor.
Outsourcing today, in many cases, means sending work to a foreign land in return for quality work at lower prices. The success of your company's outsourcing experience solely depends upon your ability to do your research and homework before choosing an offshore vendor.
Read about using the dedicated team outsourcing model
Why the Vendor Selection is Important
Choosing the right offshore vendor for your outsourced tasks is just as important (if not more) as hiring someone directly to work in the office. There are precautions you should take, as well as practical steps, checks and balances, to find the most proficient way to outsource.
Creating an Evaluation Plan
Before you begin searching for that perfect outsourcing vendor, whether a company or individual, you'll need to have an evaluation plan already in place. Ask yourself the following questions while designing your evaluation plan:
- What are the skills necessary to perform the outsourced
tasks?
- What type of person or company will be best suited for
my outsourced projects?
- What is my total budget for outsourcing?
-
Which countries will be best suited for my offshore
vendor search?
- Will the vendor need to know a specific language to
perform the tasks?
- What type of security checks will need to take place before
I can hire an offshore vendor?
These are questions every company should ask before beginning a search for an offshore vendor. This will enable the company to have all bases covered before getting started. There's nothing more time consuming and frustrating than learning you've hired the wrong offshore vendor for your outsourced projects.
Once your initial evaluation plan is in place, you can begin your search for an offshore vendor. Make sure all of your criteria are met before even considering a particular vendor. Then, you're ready to evaluate the actual vendor once you feel you've found the right one.
Read about experience with a dedicated development team from Ukraine
Areas of Importance
If you've found a potential offshore vendor, there are a few things you should confirm before making the final decision. Never be too hasty. You should approach any hiring or outsource decision with caution because of its importance to your company's security and reputation.
Below is a list of important issues that should be addressed to ensure proper vendor selection:
Financial Evaluation
Find out the exact costs of your project or ongoing outsource services before making your decision. If your main goal is to save in the area of finances, be sure you are saving when all costs are considered. Make sure to factor in not only the actual labor price, but also the costs to get the work to the company or individual, the costs of receiving the work, proofreading the work, etc. There are many hidden costs that can add up in a hurry if you're not careful.
Skills and Quality Evaluation
Verify that the vendor has the skills necessary to perform the tasks at hand. Ask for references and samples of actual work if possible. When contacting references, find out if the vendor has good communication skills when problems arise, good coordination with a busy schedule, and professional conduct. All of these qualities add up to success in outsourcing. Make sure all credentials are valid as well.
Personal Goals of the Potential Offshore Vendor
Speak to your potential vendor about their goals and objectives. If the vendor is not planning to work very long, and is just looking for a temporary job, this wouldn't work if you're looking for someone on a permanent basis. Make sure that your goals and theirs are one in the same for your outsourcing needs.
Country Evaluation
Be sure the country where the vendor lives is a stable
environment politically and economically. Learn about
the country's IT policies and outsourcing history from
other companies who outsource. Find out if there are
restrictions or certain regulations in place for outsourcing
in that particular country. Restrictions can be a good
or bad thing, depending on what they are and the reasons
for the restrictions. You'll need to know these things
in advance to effectively choose your vendor.
Read interesting facts about outsourcing to Ukraine
The outsourcing evaluations above are designed to help you make the right decision when selecting an offshore vendor. Carefully analyze your company's needs and goals as well as the vendor's background and goals for a successful outsourcing experience.
Written by Candice Pardue
