Today, businesses — whether big or small — are offshore outsourcing to business process outsourcing (BPO) companies like never before. Statistics show that 52% of small businesses plan to outsource for increased business efficiency and skills. However, only 37% do so.
Little did some business owners know that those who capitalize on outsourcing solutions can scale up operations, access hard-to-source talent, enjoy high cost savings, and expand the capabilities of their business.
It’s understandable, however, that some business owners are anxious because of the time difference. At the same time, some have no idea how to choose an outsourcing company that suits their business. So, we’re here to help you with that.
10 Factors to Think About When Selecting the Right Outsourcing Partner
While many organizations are focused on where to outsource and which outsourcing companies would best serve their business needs, it’s vital to learn how to choose an outsourcing company for your business’s success.
To help you make an informed decision, here are 10 factors that go far beyond financial concerns when evaluating a potential outsourcing partner:
1. Minimal Supervision
One of the main goals of hiring an outsourcing firm is to reduce the work you already have on-site while you focus on other business matters. So, you have to ensure that the outsourcing vendor is capable of producing high-quality work with minimal revisions.
It’s easy to see how an outsourcing company performs because they’re most likely to have a website. There, you can browse through their About Us page, portfolio, case studies, or testimonials from current or previous clients.
2. Trustworthiness
When you’re limited by the screen of your computer or phone, trust becomes an integral part of your partnership with an outsourcing provider. Hence, don’t hesitate to ask about everything you want to know about their company to see if they’re a good fit.
Most of our first-time business owner clients worry about trusting outsourced work — and for an understandable reason. This is why we always take the extra mile in proving them that we’re a trustworthy and experienced outsourcing company through our detailed case studies.
3. Service-Level Agreement
A service-level agreement (SLA) is a document that details the services and project requirements as well as the performance levels your potential outsourcing partner is expected to perform and meet. It also contains exemptions, service-level objectives (SLOs), escalation and termination procedures, security standards, penalties, and remedies.
This legally binding document ensures that you and the service provider mutually benefit from each other, while also adding a layer of protection against misunderstandings, misaligned timelines and expectations, and disputes.
However, it’s important to note that SLAs are not set in stone. Periodically review all clauses in the document, so you and the outsourcing firm remain aligned on goals and expectations despite evolving business needs.
4. Attrition Rate
Attrition rate refers to the percentage of employees who leave the company — whether through resignation, termination, or other forms of employee attrition — without those positions being filled over a given period. A high attrition rate leads to disruptions, burnout, knowledge loss, and a high cost of hiring and training.
One big factor that affects attrition is company culture. Poor company culture leads to higher costs in the long run, as employees are more likely to leave the company. Training replacements causes you to lose out on their productivity during the ramp-up period, as it usually takes a few weeks before new employees reach full productivity levels.
Therefore, it’s better overall to retain employees, and that’s usually done through good company culture, skills training, fair compensation, and more.
5. Management Team
While you have the choice to still be in charge of managing your offshore team, you can outsource project management as well. Don’t hesitate to ask details about who will be responsible for leading your outsourced team.
Aside from being an outsourcing company, KDCI Outsourcing also specializes in offshore staffing. We handle talent searching, shortlisting, and other HR tasks, while you have the final say on who gets hired for what job role. With our experience in the BPO industry, you can trust our standards in looking for specialized expertise for your business.
6. Time Zones
While you may be able to cut costs through an outsourcing company easily, the best partnerships are the ones that give you the most value for your money. One of the critical factors you have to consider to ensure profit is taking advantage of time zones.
It’s a good idea to choose an outsourcing company that has a location in a time zone that will match well with your company, or a service provider who will adjust to your time zone. Doing so will help your business have more operational flexibility and allow you to service a broader client base.
Outsourcing companies like KDCI Outsourcing always accommodate clients from different time zones. We go out of our way to communicate with you in real-time. Because we operate 24/7, you also have the flexibility to have your offshore outsourcing team work in your time zone.
7. Government Mandates and Legalities
There are some areas of the world where the process of outsourcing can be more challenging. Logically, you would want an outsourcing partner in a country where the government provides adequate support for the industry.
The Philippines, for instance, provides incentives and benefits to companies that outsource to the country as well as to employees. However, there are some nitty-gritty aspects to consider, such as taxes, leases, payroll, and more. But hiring through the right outsourcing partner lets you work through all legalities seamlessly.
8. Access to Talent
An outsourcing company’s access to talent determines how big they are as a business. It’s better to put your trust in a more prominent, experienced outsourcing company so you can be sure that you’re putting your money in the right place. Outsourcing services to the Philippines is a great way to have access to the right talent.
Based on a report by the Philippine Statistics Authority (PSA), 10- to 64-year-old Filipinos boast a functional literacy rate of 70.8% and a basic literacy rate of 93.1%. This isn’t surprising as the Philippines churns out around thousands of graduates a year, ready to be hired for any job.
Moreover, you can be sure that members of your offshore team are trained and certified to produce industry-standard products or services.
9. Tech and Infrastructure
Because you’re going to rely on a lot of online communication and technology to keep your businesses connected, it’s essential that you find a service provider that has excellent access to technology.
Make sure your potential outsourcing partner has a reliable system in place for transferring files and communicating with your in-house team. In terms of infrastructure, an outsourcing company should ideally have an office for offshore operations. This is a good sign that they are professional, and your offshore team will be in a healthy working environment.
Quick note: Before signing with an outsourcing company, ensure they have contingency or business continuity plans. This way, they are prepared for power outages, internet issues, data breaches, and other scenarios that can interfere with work.
10. Language and Communication
Speaking of communication, language is also essential in any offshore team. Make sure that your outsourcing vendor has people that you can actually communicate with.
Effective communication plays a big part in maintaining efficiency and ensures that the time and money you spend are appropriately utilized. Luckily, the Philippines is considered to be one of the best English-speaking countries in Asia, second only to Singapore according to the Education First English Proficiency Index (EF EPI). This makes interactions with your internal team and customers a complete breeze.
Work With A Trustworthy Outsourcing Partner Like KDCI Outsourcing
We understand that outsourcing or building a dedicated offshore team can be a huge leap for you and your company. As a country abundant in BPO companies, finding the ideal outsourcing partner can be overwhelming. Not to worry, though, because KDCI Outsourcing is here to help you out.
At KDCI, we make outsourcing less of a daunting venture by providing customized offshore staffing solutions for businesses needing expertise in finance and accounting, customer support, digital marketing, graphic design, software development and IT, and other fields.
Choose KDCI Outsourcing
With our deep industry knowledge and talented outsourced professionals, you can guarantee that our outsourcing services will give you the best value for your money.
We’re more than happy to answer any questions or inquiries you may have, so don’t hesitate to contact us!
