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Be Smart about Vendor Selection when Considering Outsourcing

May 7th, 2008 No Comments
Written by Ernest Paul
 Technorati Tags: Uncategorized

Having made a decision to outsource some of your work and now aware of the possibility of a project failing without adequate preparation, one will appreciate the fact that vendor selection is of crucial importance.
So, what should you look out for in a vendor?
• Find out how long the company has been operating and how it has fared so far.
• Look into the past history of the company and learn about the kinds of projects they did in the past, the problems they faced and how they dealt with them, and how much time it took to complete them. Whether the project was completed within the calculated budget is also important in vendor selection.

• Make sure the vendor is suitable to the project and is capable of completing it the way you want it done.
• Look out for high and regular employee turnover rates which are very common in this field but which can also be indicative of dissatisfaction and even burnout.
• Make sure there is a safety net. If one particular team in the company cannot complete the work there must be other employees the vendor, and you, can fall back on.
• Try to determine how versatile the vendor is and how ready the company is to make any necessary changes in their methodology if and when the need should arise.
• In order for a project to be successful one will no doubt need to look for a long term relationship but vendor selection should also take into account how adaptable and willing a vendor would be to make changes, such as working with new technology, when possible, as well as upgrading when necessary.
If possible, continue with a vendor who is aware of your aims and strategies, and with whom you have already established a satisfying relationship.

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