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Factors to Consider in Choosing a Service Provider

by: Karen Cayamanda

Wednesday, November 18, 2009 |

With the rising number of companies discovering the advantages of outsourcing, and as the current global recession compels affected companies to outsource in order to stay afloat, the number of countries that offer outsourcing services increases. In the Global Services-Tholons study entitled “Top 50 Emerging Global Outsourcing Cities”, there's India at the forefront, followed closely by the Philippines in the list of Top 5 offshore nations. Countries from different parts of the world are also emerging as great outsourcing destinations. This makes selection of the right service provider more difficult and time-consuming.

How to find the right service provider

Do not fall into the trap of many outsourcing vendors promising way more than what they can actually do. In an article “How to Choose an Outsourcing Provider”, Randy Vetter, Director from Alsbridge, Inc., discusses the factors buyers can bear in mind when it comes to finding the right service provider for them:

  • Take a closer look at the company profile. The provider's experience in the world of outsourcing will give you insights on the company's industry knowledge and capabilities. Also, know the clients that utilize its services.
  • The service provider's management style must be aligned with the buyer's requirements. Also, it should be flexible enough in such a way that it can deliver by adapting to the buyer's working environment.

Buyers which are looking for outsourcing partners may also want to consider these factors:

  • deep delivery capability
  • length of the provider's experience
  • relevant and positive references
  • financial stability
  • innovation
  • investments in research and development
  • quality achievement

Establishing a good outsourcing relationship and maintaining it will always be a challenge. The first step would be to find a service provider that understands the buyer's business goals and has the capability to meet them. Finding the most suitable provider may be difficult, but once the buyer has created an effective working relationship with its outsourcing partner, the set goals will soon be met and the advantages of outsourcing will be realized.

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