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Outsourcing- Guidelines

Introduction

Organizations often feel confused and overwhelmed when they go for outsourcing the first time. It is quite natural to have apprehensions about depending on an outsider to carry out important tasks. A good part of the discomfort comes from not having good awareness levels about the outsourcing process. Here is a quick lowdown on the most important points to remember while outsourcing.

Choose Your Vendor Carefully


Choosing a vendor well qualified for the tasks at hand reduces hassles later on. The vendor has to have the necessary experience, infrastructure and also motivation to do a good job.

It would be a good idea to place advertisements for the project with an outline of the requirements and preferences. Evaluate each application and drop applications that do not meet the parameters. The organization should then shortlist the most suitable candidates after verifying their credentials and studying their past work record.

The next step is to meet the shortlisted vendors and discuss the details. There is no need for disappointment if the discussions do not lead to an agreement of terms. It is always better to wait for the right candidate and therefore the company might have to repeat its advertisements till it gets what it needs.

Establish a Clear Understanding


When outsourcing work, it is crucial to have a proper understanding of the requirements both within the buyer company and between the buyer and vendor. The buyer needs to spell out its requirements to the vendor and also reach a clear mutual understanding on all the terms and conditions. Failing to do so can lead to a lot of delays, misunderstandings and eventual failure of the outsourced project. If such confusion occurs in the middle of a project, a mediator may have to be brought in to settle the dispute amicably.

Have a Deadline in Place


It is vital to have a firm deadline in place when projects are outsourced. This deadline has to be specified before the outsourcing agreement is signed, so as to avoid misunderstandings and delays later on. Apart from a final deadline, it would also help to have milestone goals, so that both the vendor and the buyer can easily keep track of the progress from time to time. This way, the parties can take timely corrective measures if a problem occurs at any stage.

It is advisable for the buyer company to decide on the deadline even before the vendor is chosen. This helps the buyer to confirm if the vendor is available for the entire project duration. Also, the deadline has to be discussed early on in the negotiations, so as to eliminate candidates who are not available for the duration without wasting much time in the discussions.
 
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