Thinking of outsourcing : do your diligence!

This time of year many business owners look to outsourcing certain activities. This can be a great way of reducing the burden or growing the business.

On the other hand the wrong outsourcing partner can cause mayhem and add to the stress levels. Not an ideal solution!

To reduce the risk do some basic diligence:

  1. Do they have appropriate qualifications – this could be a recognised qualification or qualification by doing. In other words do they know what they are talking about?
  2. Are they experienced – have they done the work (or similar work) in the past and can you talk to a previous client about their experience?
  3. Do they comply with the relevant legislation – they need to know what laws apply to their business and be compliant with them. A great example is data protection. You don’t want to have an issue because your outsourcing partner doesn’t understand their responsibilities with your data!
  4. Are they insured for the work they will be doing for you – insurance is a safety net for you and may influence your bargaining position over rates!

The extent of the diligence you do clearly relates to the value of the contract but remember it is your reputation to lose!

If you are going to rely on recommendations from others, always ask yourself why the person is giving the recommendation. For example is it because:

  • they have experienced the service and found it to be satisfactory?
  • they know someone from a networking meeting?
  • they know someone from social media?
  • they are going to receive some form of payment for the introduction?

The rationale for the introduction is important to your decision making process.

If it helps Crimson Crab can carry out diligence on potential outsourcing partners read more…

Our Reputation Advocates have been checked against the membership criteria, so that some of the diligence legwork has been done for you. They also work to our Ethical Trading Policy and Code of Conduct to give added peace of mind. The directory of members is here.

This entry was posted in Crimson Crab, Data Protection, Outsourcing & Employment, Procurement, Protecting Reputation, Reputation Advocates, Reputation Matters, Top Tip and tagged . Bookmark the permalink.