5 things to consider when choosing an outsourcing provider

Outsourcing has been a hotly debated topic in the IT industry for many years. Despite the fact that several analysts voted against this practice under the excuse of job losses within the country, many organizations have outsourced IT activities to countries like India and have been quite successful.

The negative publicity of outsourcing is the result of companies failing to select the right foreign partner. While it’s not easy to choose an outside provider, you should follow a rational approach to selection, just as you do in the personal interview process.

There are hundreds, even thousands of providers with more or less similar services. So how do you go about selecting a reliable supplier? Let me present a set of 5 basic criteria that must be present in your provider.

one. Availability of technical knowledge. Make sure your vendor has the people with the necessary technical expertise required on your project. Find out how the provider attracts and retains people. It is important to verify that the vendor has the resource strength to consistently maintain project deliverables. It is an additional advantage that the supplier can retain the talent for a long time. At the same time, however, there must be processes to improve technology skills.

two. past experience in technology or similar domain. It always helps if your supplier understands the same business language that you speak. Understand the previous work done by the supplier and take references from other clients. The idea is to evaluate the experience of other customers who have previously worked with the provider.

3. Infrastructure. Make sure your provider has the necessary infrastructure to support your project from a remote location. Check claims about communication/data transfer speeds, connectivity, and power supply. Developing nations like India still face power supply shortages. Only in major cities, the infrastructure can support IT companies.

Four. Process Orientation: Make sure the supplier complies with process standards (ISO, CMM) for added security.

5. personal report. Find out your comfort level dealing with the key people on the vendor side. This is the most important factor because even if the project is technology-based, you will need to interact with the supplier’s top management in conflict situations. So make sure of your comfort level with them.

Outsourcing has many benefits, but selecting the right provider plays an important role. If possible, personally visit the vendor to verify infrastructure and interview technical resources before making a final decision.