Outsourcing is a mechanism of giving out non-core work to a partner while the company focuses on its core business. The selection of the prospective outsourcing partner must be done with extra care as a wrong selection can end up with huge losses for the company. Apart from a significant financial impact, it could also lead to a negative brand image. All aspects must be considered before selecting the outsourcing partner.

The first step is identifying the jobs that are to be outsourced and their duration. Then explore the various market players in the outsourcing business through various sources like competitors, journals, internet and various other sources.

Contact the potential partners and seek information about the type of work done by them and the various clients with whom they have worked with. Check the credentials of the possible partners by checking with the customers. A general description of the work performed, adherence to the delivery time, quality of the work submitted, the technical knowledge of the employees and related general information about the prospective partner can be derived from the existing customer. If the credentials received is good, conduct a background check of the people holding key positions in the organization and analyse their experience.

Evaluate the mission and vision of the probables to identify the company objectives. Rate the various probable partners on the basis of their strengths and approach those whose rating is high for further analysis. Before conducting company analysis, scrutinize the Government policies and the basic infrastructure existing within the country. One of the reasons for the flow of BPO business to India was the government policy which was favorable for the industry. Similarly the stability of the government is a key factor for the selection as unstable government cannot guarantee a favorable climate for the industry. A sudden change of the processes may turn out to be expensive. The infrastructural policies of the government, the economic situation prevalent, and the talent pool within the country all add to final selection. India has a readily available English speaking talent pool which makes it one of the popular choices of BPO industry.

On shortlisting the companies on the basis of the general conditions, the next step is verifying the technical expertise of the company. It should be competent in the different processes related to the job, or should have the potential for developing them along with industry experience. A company visit aids in having a clear understanding of the organisational culture. The company policies related to the work, disputes, etc must be briefed. Evaluation of security measures existing within the organisation is of utmost importance. Analyse how effectively the company keeps pace with the changing technology and the training provided to the workforce to make them ready to face new challenges. The communicative system must be clear cut and effective. A peep into the feedback system, process auditing etc must be had before the final selection. Vendor’s attrition rate, and its impact on the business outsourced must be investigated. The innovative talent, communication skills etc of the employees can be reviewed on the basis of the presentation provided by the company on its attempt to capture the business.

The final decision should be based on the prospective company’s marketing pitch which features the prospective outsourcing partner’s innovative ideas, delivery time, pricing strategy, and vision. Goodwill and experience enjoyed by the prospective company adds to its advantage.

A detailed analysis of the country, its culture, economy, government, industrial growth, company vision, talent pool, all add to the final decision. The final selection should be based on how it adds to the company profitability.