Trends of business are evolving and outsourcing has turned out to be a remarkable cult over the years. Most of the companies have understood the advantages of outsourcing and they contract out some or the other services to different firms. An estimate states that around 90% of the IT companies outsource certain functions to other companies to increase their productivity and cut down costs. However, not all the services of a company are to be outsourced. You need to decide which tasks are suitable to be outsourced and mark out the ideal company to tackle these tasks. The choice of right outsourcing partner helps a company to get rid of painstaking responsibilities and boost up the production process.

questions to ask when offshoring

Here are some questions to ask when considering outsourcing

  1. What record of commitment can be provided?

    Commitment and dedication of the company matters the most when you outsource the service requirements to an external party. They should be able to provide you with the proven records of commitment. Often, reputed companies have impressive testimonials and show their track record to the clients. Commitment refers to several as aspects like quality, timely delivery of services, financial guarantees and so on. Therefore, check the commitment before you proceed to sign the contract.

  2. How will you manage our account?

    You need to be sure about the strategy of the company when they manage your account. They may assign a specific person to tackle your accounts. You need to be sure about their strategy and methodology when they execute the tasks. Ask the professionals about how they are going to manage your account. Reputed companies normally work in close association with the clients, thereby tailoring the services. Ask the company if you will be able to meet the account manager who will be tackling your accounts to have a detailed discussion before starting the work.

  3. Who were your previous customers and what about their satisfaction?

    Verbal communication is sometimes superfluous, so you need to know the feedback of the previous customers. Ask the company to provide the contact details of the previous customers. You need to speak to at least two or three of them and gather feedback from them. If you find a consistency in their feedback, you can proceed to sign the contract. However, if they happen to be unsatisfied with the services, you should look out for an alternative without proceeding with any further outsourcing questions and answers.

  4. Do you have refined manpower and infrastructure?

    Infrastructure and manpower plays a decisive role in these companies. The leading companies dealing with these aspects have world-class infrastructure and meticulously filtered staff. So, you need to get an idea about the grades of service they provide. Find out detailed information about their procedures and methodologies, so that you get the quality assurance. They should have sophisticated data-centres, internet providers, technology partners and so on, so that the right infrastructure is provided for your services.

  5. What about security factor?

    This is one of the most crucial outsourcing questions. Data security is a factor that worries most of the companies who outsource their services. The data should not be divulged to others, or be sold to competitors. Even if the company sticks to the ethical standards, they are prone to online attacks and hacking. Therefore, you need to check out their security issues and make sure that they are protected in the cyber-space. Failure to protect your data may end you up in a loss. Information thefts can be prevented if you are careful in this aspect.

  6. Do you have any plan for migration?

    You need to ask the company if they have any plans for migration. Seek detailed data about how they are going to manage the services once they migrate. If you feel that your services will be hampered, ask them about the strategies that they are going to adopt to prevent the same. It involves the human resources as well as infrastructure. They may work with your in-house staff to ensure a seamless transition, or opt to overlap operations.

  7. What about the prices?

    Financial aspects are important for all the companies. If you do not want to face a financial crunch in the future due to the changing tactics of the company, you need to clarify the payment details. First of all, make sure that the quality of services and prices charged by the company complement each other. Then ask them if they have any intentions to hike the charges in the future. When you make a detailed study of these aspects, you will get a clear idea about how much you will have to pay in the long run.

  8. What is the speciality about your abilities and skills?

    When you approach a company seeking offshore outsourcing services, make sure that it is competent in terms of skills and abilities. The latest technical know-how, manpower and special skills of the company need to be noted. As these companies have a direct impact on your productivity, it is wise to be informed about their skills.

  9. Will you provide flexible services?

    Committed companies who cater to the requirements of their clients roll out flexible services according to their needs. When you choose a company to outsource your services, check out if you can avail customizable schemes and models. Your requirements may change from time to time, so make sure that they will mould their services and charges according to the same. If you find that they do to offer much flexibility, it is better to opt for a different company to outsource the services.

  10. Are you financially sound?

    Ask for a track record of their profitability. Your partner has to be financially strong, and this will eliminate the possibility of losing a business partner in the middle of the course. Ask for details about the burn rate of the company and review their cash flow. Check out the brand image of the company, their growth rate and other information, particularly if it is a start-up.

Well! Your final question can be- why do we outsource to India; or what specific benefits can we enjoy by opting for India over other destinations?  This is a reasonable question to ask owing to the fact that most of the companies prefer India. For the question, why India is preferred for outsourcing, there are many reasons that serve as sound answers.  Cost-effectiveness, quality, ease of communication and time-zone difference are a few to mention.

Importance of outsourcing in the today competitive environment is unavoidable. So the next time you outsource your services, hopefully, you will be able to take the right decision and avail the benefits of outsourcing.