tips for outsourcing

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5 Tips for Outsourcing

Outsourcing is becoming more popular, every day. Many types of businesses are utilizing this practice with great success. Not only does it save them time and give them more control of many aspects of their business, it also saves them a great deal of money. What could be better than that?

Businesses who are considering outsourcing a portion of their workload should consider the following tips, in order to achieve the greatest level of success.

First and foremost, a third-party vendor should never be chosen based on cost alone. Choosing the lowest-priced vendor may seem like the best alternative, but many times it is not. Be careful about comparing hourly rates. A lower hourly rate may just mean that the vendor will take longer to complete the project.

Many individuals have reported that disregarding the highest and lowest priced vendor and going with one somewhere in between, yielded the best results. The motto "You Get What You Pay For," holds true. On the other hand don't pay for expertise you don't need.

Evaluate each prospective vendor as you would a full-time employee. It is wise to check references and ask several questions in regard to work experience and areas of expertise. Saving money on services rendered won't make up for shoddy work.

Clearly state the project requirements. As obvious as this may sound, it is very important to be upfront in regard to the expectations of the outsourced project. This will save time and frustration for both parties involved. Provide an outline of the project to each vendor and ask them to bid on the project.

Start small and work up to a larger workload. When outsourcing a project for the first time, use the vendor on a trial basis. Awarding a small project will give you the opportunity to approve quality of work, etc.

Once you are satisfied with vendor performance, you will feel much more comfortable handing over the entire project. Since the vendor will now understand exactly what is required, he will be more comfortable, as well.

Last but not least, always "get it in writing". It is unwise to do business without a contract, in any setting no matter how confident you are with your choice of outsouce providers.

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