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Everyone seems to be jumping the outsourcing bandwagon these days, and why shouldn't they? It has a proven track record of being able to reduce a company's costs, increase efficiency and boost sales and profits. But, like all things, this option also has a catch. It all boils down to choice. Choose a reliable vendor and you'll be laughing all the way to the bank. But if you settle for a weak outsourcing service provider, then you've just doubled your woes. Finding the correct and productive outsourcing solutions by identifying what works best for your company is the key to success in the outsourcing business. These top 5 tips should hold you in good stead should you decide to outsource or offshore a few of your business processes. 1. Choose the right vendor. This is of paramount importance for this lays the foundation for the growth and development of your business. Remember, the vendor is the entity who will be managing the day-to-day workings of your outsourced business functions. Is the vendor a one-man freelancer or does the vendor give you access to a team of employees who can work for you? 2. Does the vendor's business model support and benefit yours? The correct business model is crucial as well. For example, are you looking to outsource a project that would take one month? Or is your software company looking to develop software that would require five programmers and would run for at least two years? Obviously, the freelancer would be perfect for the former while a team of dedicated remote employees would be more suitable for the latter. 3. Experience of the outsourcing vendor. How many years into this field has the outsourcing service provider been? Which companies figure in its list? Testimonials of companies similar to your own can throw very good light on the kind of service the vendor provides. 4. Make sure you have calculated the cost correctly. The terms synonymous with outsourcing are ‘cost-savings' or ‘cost-effectiveness'. But don't just blindly rush into outsourcing just because you are enamoured with the ideas of substantial savings. While a reputed vendor will not hide any costs from you, some others may not be as scrupulous. They may propose complex pricing structures or spring hidden costs at the last moment. So, just be careful when you are doing a background check on the outsourcing vendor. 5. Always have a back-up plan or what is commonly known as an ‘exit strategy' in case something does go wrong. Choose a strong vendor who has a sound financial back-up. Many are jumping the outsourcing bandwagon only to have their funds drying up, leaving the client stranded. Carefully analyze the vendor's business model and judge whether it can be there for you for the long haul. Keep these in mind and rest assured the relationship between you and the outsourcing vendor will flow smoothly.
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